Quote:
Originally Posted by atlanta68
Would you please tell me where you got that debt service data? I had never heard that before? Why would Auburn have lower debt service rates? It isn't growing as fast as UA has, so what gives?
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AU list theirs in their financial reports. UA's was on a bond rating I saw. I will try and find it again.
Auburn's could be lower for a variety of reasons like different interest rates, different types of debt, repayment schedule. The debt service burden looks the % of expenses obligated towards debt service so growth or size doesn't factor in. Having more debt isn't always bad, its if you can afford to pay that debt.
Much of UA's debt is directly related to their growth. Growing fast leads to a lot of borrowing to build facilities to house/teach the students. It is impossible to say if they are in trouble or not without really looking into all the financials. My guess would be they are flirting with it but will be fine.
Correction Auburn's is around 6%
I agree with tascalisa though, I think UA has reached its ideal size and should be pivoting towards research.