Randolph-Macon Academy

Randolph-Macon Academy is burning the cushion faster than the 20-month buffer suggests. Expenses are outpacing revenue 9.8% vs 3.4% per year over three years, and the latest operating margin is -22.2% on a 85% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 7.4 more years — the full budget, by contrast, is covered for about 1.7 years if every revenue line stopped. The board conversation here is the recovery plan for the residential model and the timeline to break-even. NACUBO Composite Financial Index: 2.4 / 10, watch.

Randolph-Macon Academy reported $15.4M in revenue against $18.8M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $31.1M — about 1.65x annual operating expense.

Operating margin landed at -22.2%, with 84.9% of revenue coming from tuition. Among same-size peers, that puts Randolph-Macon Academy at the p0 on operating margin.