Composite Financial Index (CFI) provides an overall assessment of the University’s financial health. It is computed by calculating the values of the four core ratios: Primary Reserve Ratio, Viability Ratio, Return on Net Assets Ratio, and Net Operating Revenues Ratio. These ratios are converted to a strength factor along a common scale, with strength factors capped at 10 and floored at -4. The strength factors are multiplied by specific weighting factors, with heavier emphasis on Balance Sheet driven ratios. The resulting four weighted factors are totaled to compute the single CFI score, ranging from -4 to 10. A lower CFI score indicates financial considerations need to be made, while a higher CFI score reflects a more stable financial environment.
