Financial Sustainability Services
As the cost of providing education continues to rise while funding sources decline, many higher education institutions are exploring new business models for improved financial sustainability. An essential first step is understanding the true costs and revenues associated with existing courses and programs. Using sophisticated modeling, our experienced professionals can help you strategically pursue your sustainability, visibility and profitability goals.
Contribution Margin Analysis
BKD’s Interactive Margin Analysis Tool provides a visual analysis of the financial contribution and margin at various levels of detail for your institution—school, department, major, class, faculty member, etc. Below are easy-to-digest graphical illustrations of the data we can generate to help you better understand how various programs are performing.
Specific Areas of Insight
- Financial margin by programs/departments
- Financial contribution by course and course level
- Net tuition generated by department and margin percentage
- Faculty compensation per credit hour
- Faculty contribution margin per credit hour
- Benchmarking and trending
- Net tuition per credit hour per student
- Net tuition per credit hour per level
- Cost per credit hour enrolled
- Financial contribution by school or division
- Athletics financial performance
For more information on our detailed approach to these services, please review our solution sheet.
“For several years, Andrews University attempted to conduct a comprehensive contribution margin analysis. However, we lacked the internal resources, time and skill-sets to accomplish this important goal, and decided to retain BKD. Within our required timeline, BKD’s Interactive Margin Analysis Tool provided us with insights on operations and programs across a wide range of categories. We now have interactive data driven objectivity, helping us evaluate programs and operations, and making better informed decisions. This is a tool and a process that we highly recommend.”
— Christon Arthur, PhD
Berrien Springs, Michigan
“Boards of Trustees are all too aware of the many critical challenges facing higher education. Fulfilling our fiduciary responsibilities means we need objective data to make sound business decisions to properly support the University we serve. BKD’s Interactive Margin Analysis Tool delivers key insights into university operations and programs. As we move forward, our Board will be better equipped to work effectively toward achieving one of our objectives—ensuring the sustainability of the institution.”
— Dana Wales, Trustee
Berrien Springs, Michigan