Washburn University Debt Management Ratios
The 2004 debt management ratios have been provided to the Washburn University Board of Regents. The 2006 debt management ratios have not been prepared by WU adminstrators, but are supported with the published 2006 Washburn University audited financial reports.
Viability - Measures availability of expendable net assets to cover debt
| 2004 | 2006 | |||
| Expendable Net Assets | $81,404,700 | $47,258,114 | ||
| Long-term Debt | 32,565,000 | 2.5 times | 29,239,726 | 1.6 times |
Debt Burden Ratio - Relative cost of borrowing to overall expenditures
| 2004 | 2006 | |||
| Debt Service | $2,724,645 | $2,677,498 | ||
| Total Expenditures | 79,707,951 | 3.4% | 73,776,442 | 3.6% |
Debt Coverage Ratio - Measures excess of income over adjusted expenses to cover annual debt service payments
| 2004 | 2006 | |||
| Adjusted Change in Net Assets | $10,844,522 | $8,235,656 | ||
| Debt Service | 2,724,645 | 4.0 times | 2,677,498 | 3.1 times |
Leverage Ratio - Refers to debt in relation to equity in the university's capital structure
| 2004 | 2006 | |||
| Available Net Assets | $202,860,166 | $11,204,870 | ||
| Long-term Debt | 32,565,000 | 6.23 times | 29,239,726 | .38 times |
Net Operating Revenues Ratio - Measures ability to operate within institution's available resources
| 2004 | 2006 | |||
| Change in Unrestricted Net Assets | $5,086,357 | ($2,119,700) | ||
| Total Unrestricted Income | 85,604,567 | 5.9% | 83,067,061 | -2.6% |
Primary Reserve Ratio - Measures financial strength by comparing expendable net assets to expenses
| 2004 | 2006 | |||
| Expendable Net Assets | $81,404,700 | $47,258,114 | ||
| Total Expenditures | 82,496,564 | .99 times | 73,776,442 | .64 times |