Rice University has earned an A in Forbes’ most recent College Financial Grades list, achieving a 3.97 GPA. In evaluating 876 private colleges and universities, the influential business magazine identified the nation’s “strongest and weakest schools” in terms of financial health and performance.
In its comments about the significance of the rankings, Forbes said, “For any student who wants to spend their college days on the same campus — especially if that school is small to begin with — selecting a financially sound school is more important than ever.”
“We are proud to receive an A in Forbes’ College Financial Grades list, which reflects our commitment to maintaining and growing a strong and sustainable financial foundation,” said Kelly Fox, executive vice president for operations, finance and support. “This recognition highlights our efforts to ensure that every student can thrive academically and financially in a supportive and vibrant environment.”
The university’s nearly $8 billion endowment plays a vital role in its financial health, as distributions provide approximately 40% of the university’s operating revenues – the single largest revenue source to the operating budget.
Forbes’ grades are designed to assess a private, not-for-profit college’s operational soundness and balance sheet health using the following nine measures: endowment assets per full-time equivalent student (17.5%), primary reserve ratio (15%), viability ratio (10%), core operating margin (10%), tuition as a percentage of core revenues (15%), return on assets (10%), admissions yield (7.5%), percent of freshmen receiving grant aid (7.5%) and instruction expenses per full-time equivalent student (7.5%).
The data was derived from the Department of Education’s National Center for Educational Statistics. Only schools with more than 500 full-time students were included, and public colleges were not graded.
This accolade compliments Rice’s other premier rankings, including 17th among the nation’s top universities in the latest edition of U.S. News & World Report’s “Best Colleges” guidebook.
More information on the Forbes rankings and the full list of evaluated schools can be found here.