Southwestern reports ‘objective’ measurement of institution’s financial health

Southwestern Baptist Theological Seminary released today the institution’s most recent Composite Financial Index (CFI) score of +3.0, an “objective” metric that “quantifies the significant progress made in the past 28 months,” President David S. Dockery said in a statement.

CFI is a “standard measuring tool used by the U.S. Department of Education and almost all accrediting agencies to assess the financial health of higher education institutions,” Dockery said.

An institution’s CFI score can range from -1.0 to +3.0 for private institutions based on primary reserves, expendable net assets, change in net assets, and net revenue from operating activities resulting in a composite score. Southwestern’s CFI scores over the last three years have moved from below zero at the end of 2022 to +1.2 for 2023 to +3.0 for 2024, demonstrating the institution has moved from a “place of significant stress” to a “place of institutional responsibility related to finances,” he said.

While noting remaining at +3.0 will not be easy and scores can fluctuate based on various factors, Dockery said the “metric is another sign of God’s amazing faithfulness to Southwestern.”

“We rejoice at this good news and the hopeful marker of real progress from an objective source,” he said. “The Southwestern community has prayed for God’s favor and blessings, and we continue to live in dependence upon God while offering regular thanks and gratitude to our Lord for his provision and help. Thanks be to God.”

Dockery’s entire statement follows.

“Southwestern Seminary is delighted to report objective information about the financial health of the institution that quantifies the significant progress made in the past 28 months.

“The Composite Financial Index is the standard measuring tool used by the U.S. Department of Education and almost all accrediting agencies to assess the financial health of higher education institutions. The Index provides an overall score after evaluating primary reserves, expendable net assets, change in net assets, and net revenue from operating activities.

“Scores for private institutions are granted within a range of -1.0 to +3.0. A score of -1.0 to +1.0 points indicate an institution in financial stress. A score of +1.0 to +1.5 indicates an institution in a place of caution with yellow blinking lights; it is not in financial stress but lacks financial stability or strength. An institution that scores between +1.5 and +3.0 is an institution that is financially responsible.

“At the end of the 2022 year, Southwestern was below zero, a place of significant stress.

“At the end of 2023, much progress had been seen as the institution moved above the +1.0 level to a place of caution at +1.2.

“At the end of 2024, Southwestern’s score was +3.0, having moved to a place of institutional responsibility related to finances.

“This metric is another sign of God’s amazing faithfulness to Southwestern. Remaining at +3.0 will not be easy. Institutions often range from year-to-year based on a variety of factors such as enrollment, gifts, and other matters, including budget oversight.

“We rejoice at this good news and the hopeful marker of real progress from an objective source. The Southwestern community has prayed for God’s favor and blessings, and we continue to live in dependence upon God while offering regular thanks and gratitude to our Lord for his provision and help. Thanks be to God.”