December 12, 2013
Stanford University reports FY 2013 financial results
Stanford University reported its financial results for fiscal year 2013 (FY2013), which ended Aug. 31, 2013. Consolidated net assets increased $3 billion, or 11 percent, to end the year at $29.7 billion. Consolidated results include the university, Stanford Hospital & Clinics, and Lucile Salter Packard Children's Hospital at Stanford.
"Excellent investment performance, growth in health care services revenues and a record number of donors contributed to strong financial results for the university in FY2013," said Randy Livingston, vice president for business affairs and chief financial officer. "Despite these solid results, Stanford remains cognizant of the significant challenges ahead in the face of existing and imminent health care reform and the uncertain outlook for federal research funding resulting from the federal budget deficit."
Net assets of the university, excluding the hospitals, increased 9 percent, to $25.7 billion. The university's endowment rose in value by 9 percent over the past year to $18.7 billion, eclipsing 2008's previous high of $17.2 billion. Payout from the endowment increased 6 percent to $921 million in FY2013 and funded 23.2 percent of the university's FY2013 expenses. The endowment payout as a percentage of the beginning endowment value was 5.4 percent for FY2013.
The university ended the year with a surplus from operating activities of $165 million, compared with $211 million in the prior year. Operating revenues were $4.1 billion, up $161 million or 4 percent over the prior year. The net assets of the hospitals, which are separate legal entities, increased $789 million to $4 billion in FY2013, an increase of 25 percent. The hospitals had a combined surplus from operating activities of $399 million.
FY2013 results were reported to the university's Board of Trustees on Dec. 10 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.