The Alfred and Adele Davis Academy

The Alfred and Adele Davis Academy is burning the cushion faster than the 3.7-year buffer suggests. Expenses are outpacing revenue 6.2% vs -12.6% per year over three years, and the latest operating margin is -37.0% on a over 100% 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 3.7 years 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: 4.2 / 10, adequate — monitor.

The Alfred and Adele Davis Academy operates at 119% tuition dependency — among the most tuition-reliant 0% of peers in its cohort. A soft admissions year would flow straight to operations.

The Alfred and Adele Davis Academy reported $12.3M in revenue against $16.9M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $63.2M — about 3.74x annual operating expense.

Operating margin landed at -37.0%, with 119.4% of revenue coming from tuition. Among same-size peers, that puts The Alfred and Adele Davis Academy at the p0 on operating margin.