Balance sheets grew stronger during the pandemic

The value of assets on the balance sheets of the 37 universities in the public system increased by 24 per cent, or $19.7bn in 2018-21, according to a new analysis by Frank Larkins (Uni Melbourne) in CMM this morning, HERE. His full paper is HERE.     

Overall, assets are concentrated in the big six (Uni Queensland, Uni Sydney, UNSW, ANU, Monash U and Uni Melbourne). Uni Melbourne alone had total assets valued at $106bn in 2021, 10.6 per cent of the system total. “The concentration of financial resources among a few universities is necessary to achieve international competitiveness especially in research,” Professor Larkins argues.

However of the 11 universities with the highest proportional total asset growth in 2018-21 rank below 20.

“For all 37 universities in aggregate, total assets increased by 24 per cent and net assets by 18 per cent underlining how resilient Australian universities collectively have been in coping with the financial consequences of the COVID-19 pandemic,” he writes.

“The breadth and variability of financial performances of Australian universities highlights the diversity of the sector in terms of teaching and learning programmes, research intensity and partnerships. The sector has remained internationally competitive and maintained or strengthened its position in terms of international university rankings.”