Additional Services

Benchmarking Ratio Report

IHELA partners with Baker Tilly Virchow Krause, LLP to provide a Benchmarking Report that compares 30 financial ratios for the past 5 fiscal years for those colleges and universities that participate in the program. Institutions may also choose to have included in the report a brief narrative analysis of the five-year trend for each of the following ratios:

  • Primary Reserve Ratio
  • Capitalization Ratio
  • Net Income Ratio
  • Return on Net Assets Ratio
  • Viability Ratio
  • Institutional Undergraduate Tuition Discount Ratio
  • Net Tuition per FTE Student
  • Educational Expenses per FTE Student

Use of Ratios

A few high-level measures – financial and otherwise – are essential for institutional leaders to understand the institution’s performance in accomplishing its mission. Such measures must relate to four key questions that are fundamental to institutional transformation – all within the context of institutional mission.

  • Are financial resources sufficient to support the mission?
  • What financial resources are available to support the mission?
  • How are the financial resources used to support the mission?
  • Are financial resources applied efficiently and effectively to support the mission?

In this report, these key questions and their associated ratios focus on historical performance. By comparing a ratio for one institution with the same ratio for other similar institutions, participants gain a useful perspective. Comparing an institution’s actual ratios with anticipated or budgeted ratios provides another view of performance. This financial report is confidential and intended solely for the information and use of management and governing boards of the participating institutions and the Iowa Higher Education Loan Authority.

The costs of this report are shared between IHELA and the participating institutions. IHELA covers 2/3 of the cost for each institution for whichever level of service they choose and each institution is responsible for the remaining 1/3 of the cost.