Southfield School

Southfield School shows signs of real financial distress. Reserves cover under 1 months of expenses, a precarious runway. Revenue is 86% tuition-dependent (peer median 88%), concentrated but in line with most independent day schools. Staff compensation runs 56% of expenses, well below the peer median, worth understanding why. Expenses are outpacing revenue 10.8% vs 6.0% per year over three years, signaling margin compression worth flagging. NACUBO Composite Financial Index: -0.4 / 10, distressed.

Southfield School holds only 1 months of operating expense in reserve — a thin runway that warrants understanding before walking into a campus visit.

Southfield School reported $7.2M in revenue against $7.2M in expenses in fiscal year 2023, the most recent filing on record. Net assets stood at $365K — about 0.05x annual operating expense.

Operating margin landed at -0.3%, with 85.9% of revenue coming from tuition. Among same-size peers, that puts Southfield School at the p53 on operating margin.