Financial Ratio Analysis of Selected Seventh-day Adventist Tertiary Educational Institutions in Southeast Asia

Abstract

This qualitative research study used financial ratio analysis techniques to compare the financial health of selected SDA colleges/universities in Southeast Asia. The goals were to identify financial strengths and weaknesses, and discover best practices by looking for potential benchmarks that could be used by sister institutions. Financial statement data for the 2015-2016 academic year was used from two institutions that were willing to participate in this study.

The results showed that one university had about twice as many students as the other. The smaller institution had relatively high tuition and fees, but experienced a net loss and declining liquidity. The larger university charged relatively low tuition and fees, but experienced a modest net gain and improving liquidity.

These results may help administrators to identify and adopt best practices among peer institutions which may lead to strategies of how financial problems may be resolved and institutional missions may be better carried out. Gathering institutional best practices may also lead to the establishment of future performance benchmarks for d SDA higher educational institutions in Southeast Asia and beyond.