For the Bicentennial Strategic Plan, IU is tracking metrics such as the Maximum Annual Debt Service to Operating Expenses Ratio, the Available Resources to Debt, and others.
The Debt Service to Operating Expense Ratio is the portion of the university’s operating expenses that go toward paying debt service. Debt service burden can be reduced by funding more projects with cash and gifts, and by diversifying our debt portfolio.
The Available Resources to Debt compares potentially expendable university resources for debt service to annual debt service. This is one of the university’s strong balance sheet metrics and maintaining this metric above 3.0x is a level at or above our AAA-rated peers.
The Increase in Net Position is the university’s equivalent to net income.The target is to maintain annual increase in net position at or above $100 million in order to support the university’s ability to not only support annual operations but continually reinvest strategically for the long term.
For Moody’s and S&P Bond Ratings, IU has AAA ratings with both leading credit rating agencies. The university is among seven public schools with two such AAA ratings.