Financial Sustainability in Private Colleges and Universities: Measuring Return on Net Assets and Assessing Business Strategy

Higher education institutions are facing a challenging operating environment. Policymakers and Boards rely on financial ratios to measure institutions financial viability. A limited body of research correlates strategy with financial and operating performance. This research addresses measures of financial sustainability in private non-profit academic institutions. An explanatory sequential mixed methods design assessed data from private institutions from 2004–2022. The research details methods utilized by leadership of institutions in decisions related to long-term financial sustainability and viability. Given the financial pressures facing institutions, a clearer understanding of decision-making methods may facilitate strategies for financial sustainability and education policy.