Building and Maintaining Cash Reserves

Volume 44

No. 10//

August 12, 2019

The number one marker in the second-tier of the ISM Stability Markers® is cash reserves, and it has been continually ranked in the top two of correlates for a school’s long-term sustainability over a period of decades. The technical definition for ISM’s Stability Marker for “cash reserves” is actually a formulaic mix of cash reserves, debt, and endowment. A school’s high score on this means there is excess cash, at levels of 25% /or more of the total operating budget, and low (or no) debt.

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