Composite Financial Index (CFI)
Providing A Clearer View of Your School’s Financial Future
Understanding your school’s long-term financial health is critical - but complex financial data can be overwhelming. The Composite Financial Index (CFI) simplifies this challenge by distilling key financial metrics into a single, strategic score that reveals strengths, risks, and overall sustainability.
Developed by experts from KPMG who analyzed data from over 250 colleges, the CFI is a sophisticated tool that has been specifically adapted for K-12 independent schools. It provides a holistic, data-driven view of financial performance, helping school leaders and trustees to make informed, strategic decisions.
DASHBOARD & REPORTING SERVICES:
Helping You Implement the CFI
How the CFI Works
The CFI is built on four essential financial ratios that assess your school’s fiscal health:
- Primary Reserve Ratio – Measures financial flexibility and resilience.
- Net Operating Revenues Ratio – Evaluates operational efficiency and sustainability.
- Return on Net Assets Ratio – Assesses overall financial performance and asset growth.
- Viability Ratio – Gauges the ability to meet debt obligations and advance the mission.
The CFI highlights trends over time, enabling schools to track financial progress, anticipate challenges, and adjust strategy accordingly.
How NBOA Advisory Services Helps
Expert-Led Implementation & Analysis
Our consulting team works directly with your leadership to integrate the CFI into financial planning. We provide hands-on guidance, helping you interpret your results and apply them to long-term decision-making.
Actionable Financial Insights
The CFI isn’t just about numbers—it’s about what they mean. We help schools analyze year-over-year trends, uncover strengths, and identify financial risks before they become critical.
Simplified Financial Communication
Finance shouldn’t be complicated to explain. The CFI translates complex financial data into a single, clear metric, making it easier to present to trustees, senior leadership, and potential donors.
Long-Term Financial Tracking
Financial health is built over time. We help you apply the CFI across multiple years, ensuring that today’s decisions support your school’s long-term sustainability.
The Impact of Using the CFI
Our CFI Consulting Services provide a structured, expert-led approach to financial analysis, ensuring that your leadership team and board can leverage the CFI for smarter, more strategic decision-making.
SEE THE FULL PICTURE & TRACK PROGRESS
A single score that reflects your school’s financial health while providing year-over-year insights to guide decisions.
ENHANCE STAKEHOLDER COMMUNICATION
Clear, concise financial data that empowers trustees, senior leadership, and donors to make informed decisions.
DRIVE SMARTER STRATEGY
Use data-driven insights to set realistic financial goals, align planning with your mission, and proactively manage sustainability.
GET EXPERT GUIDANCE
Hands-on consulting tailored to your school’s unique financial landscape, ensuring you maximize the value of the using the CFI.