The Chicago Academy For The Arts

The Chicago Academy For The Arts is burning the cushion faster than the 2-month buffer suggests. Expenses are outpacing revenue 7.2% vs -1.6% per year over three years, and the latest operating margin is -14.7% on a 77% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 11 more months — the full budget, by contrast, is covered for about 2 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: -1.8 / 10, distressed.

The Chicago Academy For The Arts holds only 2 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

The Chicago Academy For The Arts reported $6.0M in revenue against $6.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $901K — about 0.13x annual operating expense.

Operating margin landed at -14.7%, with 76.6% of revenue coming from tuition. Among same-size peers, that puts The Chicago Academy For The Arts at the p13 on operating margin.