Princeton Day School

Princeton Day School is burning the cushion faster than the 2.5-year buffer suggests. Expenses are outpacing revenue 5.6% vs -6.5% per year over three years, and the latest operating margin is -6.1% on a 89% tuition-dependent revenue mix. Covering the deficit at today's rate, it would take more than a decade to exhaust reserves — the full budget, by contrast, is covered for about 2.5 years if every revenue line stopped. The board conversation here is the recovery plan for the operating model and the timeline to break-even. NACUBO Composite Financial Index: 3.2 / 10, adequate — monitor.

Princeton Day School reported $47.8M in revenue against $50.7M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $127.9M — about 2.52x annual operating expense.

Operating margin landed at -6.1%, with 89.3% of revenue coming from tuition. Among same-size peers, that puts Princeton Day School at the p7 on operating margin.