Two-year college fiscal health and the impact of local levies.

摘要

This study used Principal Component Analysis to study appropriate financial ratios to use when calculating a Composite Financial Index Score for public, two-year colleges. The study analyzed the financial statements from 22 community colleges in Ohio, for fiscal year 2003 to 2013. The study identified a four factor composite score that was used to test the difference among this newly developed Principal Composite Financial Index Score and two other methods identified from the research. Although no significant difference was found among the methods overall, a one-way ANOVA did find some significant differences among methods within institutions but that was not common. The study found no significant fiscal health difference between levy and non-levy institutions. The overall outcome was the identification of a ratio analysis methodology which provides more detail about what is driving the fiscal health score; this method is not statistically different from commonly used methods.