STANFORD, Calif.--(EON: Enhanced Online News)--Stanford University reported its financial results for fiscal year 2016 (FY2016), which ended Aug. 31, 2016. Consolidated net assets increased $1.4 billion, or 4 percent, to end the year at $37.0 billion. Consolidated results include the university, Stanford Health Care (SHC), and Lucile Salter Packard Children's Hospital at Stanford (LPCH), and other majority-owned or controlled entities of these organizations.
"Stanford’s financial position remains strong,” said Randy Livingston, vice president for business affairs and chief financial officer. “Consolidated FY2016 financial results benefited from positive investment performance, strong health care services revenues and the continued generous donor and community support. Despite these positive results, the prospect of weaker investment returns, pressure on tuition and federal-sponsored research funding, the high cost of Bay Area housing and changes in health care services will continue to challenge us.”
Net assets of the university, excluding SHC and LPCH, increased 4 percent, to $31.7 billion. The university's endowment rose in value by 1 percent over the past year to $22.4 billion. Payout from the endowment increased 7 percent to $1.1 billion in FY2016 and funded 23 percent of the university’s FY2016 expenses. Operating revenues were $5.2 billion, up $260 million or 5 percent over the prior year.
In FY2016, SHC’s net assets decreased $6 million, or 0.2 percent, to $3.1 billion; LPCH’s net assets increased $157 million, or 8 percent, to $2.2 billion.
FY2016 results were reported to the university's Board of Trustees on Dec. 6 and are posted on the Stanford bondholder web pages (http://bondholder-information.stanford.edu).
Information in this press release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements." In this respect, the words "estimate," "project," "anticipate," "expect," "intend," "believe" and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the university's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements.