Bethune-Cookman University: A Look at its Financial Health

Following a week of passionate student protests and demands for change, many have been curious about the financial stability of Bethune-Cookman University. In response, we at HBCUPASS took a closer look at the university's financial situation. In this blog, we will delve into BCU's financial health, showcasing its crucial financial metrics, and presenting a comprehensive understanding of the institution's financial status.

As of June 30th, 2021, the university had total assets of $214,110,723 and total liabilities of $99,396,843, according to its balance sheet.

Cash and Cash Equivalents

One of the key indicators of a university's financial stability is its cash and cash equivalents. As of June 30th, 2021, Bethune-Cookman University had $20,052,733 in cash and cash equivalents, up from $9,877,809 in 2020. This increase in cash and cash equivalents is a positive sign for the university, indicating that its financial position has improved over the last year.

Investments

Investments are another important factor in a university's financial health. As of June 30th, 2021, Bethune-Cookman University had investments worth $35,020,215, compared to $28,224,464 in 2020. This increase in investments is another positive sign for the university, as it shows that it is generating returns from its investment portfolio.

Student Accounts Receivable

Student accounts receivable refers to the amount of money the university is owed by its students for tuition and fees. As of June 30th, 2021, Bethune-Cookman University had student accounts receivable worth $6,762,737, compared to $2,471,366 in 2020. This increase in student accounts receivable is a positive sign for the university, indicating that more students are enrolling and paying their fees.

Grants and Student Aid Receivable

Grants and student aid receivable refer to the amount of money the university is owed by government or other organizations for student financial aid. As of June 30th, 2021, Bethune-Cookman University had grants and student aid receivable worth $7,401,158, compared to $3,226,431 in 2020. This increase in grants and student aid receivable is another positive sign for the university, indicating that more students are receiving financial aid and that the university is receiving more funds to support its students.

Liabilities

A university's liabilities are obligations it has to pay in the future. As of June 30th, 2021, Bethune-Cookman University had liabilities worth $99,396,843, compared to $116,418,459 in 2020.

Net Assets

Net assets represent the amount of money the university has after deducting its liabilities from its assets. As of June 30th, 2021, Bethune-Cookman University had net assets of $114,713,880, compared to $74,581,781 in 2020. This increase in net assets is a positive sign for the university, indicating that it is in a stronger financial position than it was in the previous year.

2021 Cash Flow

The Cash Flows from Operating Activities section of the statement shows the change in net assets, which was $40,132,099 in 2021. This change was due to several factors including depreciation and amortization, net unrealized loss on investments, and changes in operating assets and liabilities.

The Cash Flows from Investing Activities section showed a net cash used of $14,535,378 in 2021, which was largely due to purchases of investments and the purchase of property and equipment. However, the university did receive proceeds from sales and maturities of investments, which helped to offset some of the cash used.

In the Cash Flows from Financing Activities section, we see that the university received contributions for long-term endowments and proceeded from borrowings, but also had repayments on bonds payable, other borrowings, and capital lease obligations. The net effect of these activities was a cash used of $3,046,454.

Finally, the statement shows that the net increase in cash and cash equivalents was $10,174,924, which brings the total cash and cash equivalents at the end of the year to $20,052,733.

Conclusion

In conclusion, Bethune-Cookman University appears to be in a relatively strong financial position, as indicated by its increasing cash and cash equivalents, investments, student accounts receivable, and grants and student aid receivable. While its liabilities have increased, this increase is in line with its assets, so it may not represent a significant concern. However, it is always important to keep a close eye on the financial health of any organization, and Bethune-Cookman University is no exception. Regular reviews of its financial statements and careful analysis of its operations will help to ensure that the University remains on solid financial footing in the years to come.

Overall, the financial statements for Bethune-Cookman University, for the years ended June 30, 2021 and 2020 indicate that the University is well-positioned to continue its mission of providing quality education to its students. With strong cash flows from operating activities and investments, the University is well-equipped to continue to support its operations and invest in its future.

Bethune-Cookman University is a private, co-educational institution located in Daytona Beach, Florida, founded in 1904 by Mary McLeod Bethune.She started the school with only five students and a $1.50 in her shoe, but it quickly grew into a leading college for African American students. Today, the university continues to provide comprehensive education to students, preparing them for their careers and life.

Please note that the financial information and analysis provided in this blog is based on the financial statements for Bethune-Cookman University, Inc for the years ended June 30, 2021 and 2020. It is important to keep in mind that the year 2020 marked the start of the COVID-19 pandemic, which has had a significant impact on the global economy and various industries, including higher education. The financial information presented in this blog may be influenced by the effects of the pandemic, and should not be used as the sole basis for making any investment decisions. It is recommended to conduct further research and seek professional advice before making any financial decisions.