Meet Standard: The school has a current ratio of at least 1.1.
Meet Standard: The school was able to enroll and maintain 95% of its projected enrollment.
Unrestricted Days Cash
Meet Standard: 60 days cash OR between 30 and 60 days cash and one-year trend is positive. (schools in their first or second year of operations must have 30 days cash).
Meet Standard: School is not in default of financial obligations. Financial obligations include, but are not limited to: nonpayment, breach of financial representation, non-reporting, non-compliance, financial judgements, loan covenants, and/or tax obligations.
Total Margin and Aggregated 3-Year Total Margin
Meet Standard: Total margin — Aggregated 3-year total margin is positive and the most recent year total margin is positive OR aggregated 3-year total margin is greater than -1.5 percent, the trend is positive for the last two years, and the most recent year total margin is positive.
Debt to Asset Ratio
Meet Standard: Debt to asset ratio is less than 0.9.
Meet Standard: Multi-year cumulative cash flow is positive and cash flow is positive each year OR multi-year cash flow is positive, cash flow is positive in one of two years, and cash flow in the most recent year is positive.
Debt Service Coverage Ratio
Meet Standard: Debt service coverage ratio is equal to or exceeds 1.1.