Western Reserve Academy

Western Reserve Academy looks durable. The school holds 4.9 years of operating cushion, on the lighter end for a boarding school. Revenue runs 58% tuition-dependent (peer median 79%), moderate diversification with a meaningful endowment and contributions base. Staff compensation runs 39% of expenses, well below the peer median, worth understanding why. Expenses are outpacing revenue 4.3% vs -5.0% per year over three years, signaling margin compression worth flagging. NACUBO Composite Financial Index: 7.9 / 10, strong.

Western Reserve Academy reported $49.8M in revenue against $41.0M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $201.8M — about 4.92x annual operating expense.

Operating margin landed at 17.7%, with 57.8% of revenue coming from tuition. Among same-size peers, that puts Western Reserve Academy at the p93 on operating margin.