Chesapeake Bay Academy

Chesapeake Bay Academy is burning the cushion faster than the 11-month buffer suggests. Expenses are outpacing revenue 5.5% vs -18.1% per year over three years, and the latest operating margin is -52.1% on a over 100% tuition-dependent revenue mix. Covering the deficit at today's rate, reserves would last roughly 21 more months — the full budget, by contrast, is covered for about 11 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: 1.1 / 10, watch.

Chesapeake Bay Academy operates at 108% tuition dependency — among the most tuition-reliant 0% of peers in its cohort. A soft admissions year would flow straight to operations.

Chesapeake Bay Academy reported $2.7M in revenue against $4.1M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $3.7M — about 0.89x annual operating expense.

Operating margin landed at -52.1%, with 107.6% of revenue coming from tuition. Among same-size peers, that puts Chesapeake Bay Academy at the p3 on operating margin.