Moravian Academy

Moravian Academy is burning the cushion faster than the 14-month buffer suggests. Expenses are outpacing revenue 16.2% vs -2.0% per year over three years, and the latest operating margin is -9.9% 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 14 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: 2.7 / 10, watch.

Moravian Academy reported $32.2M in revenue against $35.4M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $41.8M — about 1.18x annual operating expense.

Operating margin landed at -9.9%, with 88.7% of revenue coming from tuition. Among same-size peers, that puts Moravian Academy at the p3 on operating margin.