The Pennfield School

The Pennfield School is burning the cushion faster than the 5-month buffer suggests. Expenses are outpacing revenue 9.1% vs -2.3% per year over three years, and the latest operating margin is -14.9% on a 91% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 2.6 more years — the full budget, by contrast, is covered for about 5 months 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: -0.7 / 10, distressed.

The Pennfield School holds only 5 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

The Pennfield School reported $3.3M in revenue against $3.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $1.5M — about 0.39x annual operating expense.

Operating margin landed at -14.9%, with 91.0% of revenue coming from tuition. Among same-size peers, that puts The Pennfield School at the p14 on operating margin.