NDSU's 2015 Financial Review Summary
NDSU’s overall financial position is good. The CFI, primary reserve ratio, current ratio, working capital ratio and net income margin ratio are good. The viability ratio is below 1.0 at .8 but has improved slightly since FY2012 and is not a concern at this time. Enrollment remains stable. Long term liabilities decreased 9 percent. However, with a viability ratio of .8, NDSU should be cautious about adding new debt in the future.
Standard & Poor’s reaffirmed its ‘AA-‘ rating with a stable outlook in a report dated May 28, 2015. According to S&P, “The rating reflects our view of NDSU’s strong enterprise and financial profile, specifically its position as the designated land-grant and flagship institution and leading research university in North Dakota, growing and geographically diverse enrollment base, good operating performance and adequate financial resource ratios for the rating category”.
Moody’s reaffirmed its ‘Aa3’ rating with a stable outlook in a report dated May 27, 2015. According to Moody’s, “The Aa3 rating on the university's housing and auxiliary facilities revenue bonds is based on NDSU's status as the state's land grant university with growing research activity combined with strong state support, and favorable enrollment growth.” “The stable outlook reflects our expectation of continued enrollment growth, positive operating performance and modest financial resource growth with no material increase in debt….It’s profile is bolstered by its designation as a research university with very high research activity by the Carnegie Commission on Higher Education.”