 Introduction
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Fiscal 1997 was another record-breaking year financially for
Johns Hopkins. The University's net assets reached nearly $2
billion, with unrestricted net assets topping $1.2 billion.
Research grants and contracts exceeded $900 million, and at
year-end the University held another $550 million in research
awards. Hopkins continued as number one in receipt of federal
research funds, and its School of Medicine, School of Public
Health, and Applied Physics Laboratory remained number one in
their respective categories. University net assets increased $227 million on the year, thanks largely to appreciation on investments and new gifts, but also on the strength of a $31 million operating surplus. Operations also provided net cash flow of $151 million. This performance and similar success over the past 10 years leave the University twice as strong financially as it was a decade ago. During that time, endowment more than doubled, revenue of the academic divisions more than doubled, investment in plant and equipment more than doubled, and enrollment increased to record levels in number and quality. At the same time, the University steadily reduced its long-term debt from a high in 1993 of $475 million to its current level of $457 million. This strong financial performance, of course, was the result of strong program performance. For the seventh straight year, The Johns Hopkins Hospital--staffed by School of Medicine faculty-- was judged the best in the nation in U.S. News & World Report, which also ranked the University 14th among 228 national universities. The School of Public Health was ranked first, and the Whiting School of Engineering's graduate programs moved solidly into the top tier, ranking 17th nationally. Money magazine put Hopkins fifth in the "costly but worth it" category. When the University refinanced a portion of its long-term debt this spring, Standard and Poor's and Moody's Investors Service confirmed bond ratings of AA- and Aa2, respectively, and forecast a stable outlook for the future. In commenting on the strength of the University's credit, Moody's cited "the depth and high caliber of [Hopkins] research faculty," its "track record for garnering federal and corporate research grants," its "favorable student demand indicators, and its program of diversifying into continuing education." Each of these factors is carefully nurtured and sustained by Hopkins, as part of an integrated academic and financial strategy. The past 10 years of strong, decentralized academic growth--subject to tight central fiscal management--have set the University on a course of continued excellence and financial stability.
John J. Lordan
© 1998 The Johns Hopkins University. Baltimore, Maryland. All rights reserved. http://www.jhu.edu/news_info/finance97/intro.html Last updated 16Apr98 by dgips@jhu.edu |