Uc's Financial Health
Tuesday, September 23, 2025
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At the same fourth dimension that UC President Mark Yudof declared a financial emergency this summer, the UC was reviewed for a novel develop of bonds yesteryear Moodys, in addition to the bond raters told a really dissimilar even than the i the Office of the President was presenting to Earth in addition to its ain employees. According to recent reports from Moodys, the academy generates billions of dollars of profits in addition to has billions of dollars of funds that it tin exercise for whatever purpose. Here are some of the highlights from recent bond reports, which special UC’s financial health:
1. “Excess of $4 billion of cyberspace patient revenue at its v academic medical centers”; [net revenues equals profits]
2. “Healthy in addition to highly consistent operating performance, amongst operating cash flow inwards excess of $2 billion driven yesteryear a highly diversified revenue current amongst no unmarried revenue root exceeding 26% of full revenues”;
3.” Sizeable residuum canvass that remains highly liquid, amongst $5.9 billion of unrestricted financial resources in addition to active treasury administration monitoring a short-term investment puddle approaching $8 billion inwards recent years”; [a full of $14 billion that tin travel used for whatever purpose]
4. “UC's financial resources convey grown from around $11 billion inwards FY2002 to over $15.5 billion inwards FY2006. Expendable financial resources convey grown from less than $8 billion to over $13 billion over the same fourth dimension period”. [more full revenue in addition to to a greater extent than unrestricted funds]
5. “Resource increment has partially been driven yesteryear fundraising success across the campuses. The University reports full someone giving inwards FY2006 approached $1.3 billion amongst over $10 billion raised inwards the concluding decade”. [the endowment funds allows for borrowing in addition to flexible funds]
6. “With expendable financial resources roofing pro-forma debt yesteryear 1.4 times, in addition to debt service consuming solely 3.6% of operating expenses, nosotros believe the University retains meaning additional debt capacity”. [UC tin borrow to a greater extent than coin at a depression cost]
It is clear that the medical facilities generate a huge turn a profit that tin travel shared amongst the other units. It is besides evident that the UC has billions of dollars of unrestricted funds that tin travel used to bargain amongst the electrical current country budget crisis. Moreover, the UC is able to borrow coin at a really depression involvement charge per unit of measurement because it has in addition to then much unrestricted funds inwards its multiple revenue streams. In other words, everything Yudof in addition to the Regents convey said well-nigh the dire country of the UC’s finances is only untrue.
1. “Excess of $4 billion of cyberspace patient revenue at its v academic medical centers”; [net revenues equals profits]
2. “Healthy in addition to highly consistent operating performance, amongst operating cash flow inwards excess of $2 billion driven yesteryear a highly diversified revenue current amongst no unmarried revenue root exceeding 26% of full revenues”;
3.” Sizeable residuum canvass that remains highly liquid, amongst $5.9 billion of unrestricted financial resources in addition to active treasury administration monitoring a short-term investment puddle approaching $8 billion inwards recent years”; [a full of $14 billion that tin travel used for whatever purpose]
4. “UC's financial resources convey grown from around $11 billion inwards FY2002 to over $15.5 billion inwards FY2006. Expendable financial resources convey grown from less than $8 billion to over $13 billion over the same fourth dimension period”. [more full revenue in addition to to a greater extent than unrestricted funds]
5. “Resource increment has partially been driven yesteryear fundraising success across the campuses. The University reports full someone giving inwards FY2006 approached $1.3 billion amongst over $10 billion raised inwards the concluding decade”. [the endowment funds allows for borrowing in addition to flexible funds]
6. “With expendable financial resources roofing pro-forma debt yesteryear 1.4 times, in addition to debt service consuming solely 3.6% of operating expenses, nosotros believe the University retains meaning additional debt capacity”. [UC tin borrow to a greater extent than coin at a depression cost]
It is clear that the medical facilities generate a huge turn a profit that tin travel shared amongst the other units. It is besides evident that the UC has billions of dollars of unrestricted funds that tin travel used to bargain amongst the electrical current country budget crisis. Moreover, the UC is able to borrow coin at a really depression involvement charge per unit of measurement because it has in addition to then much unrestricted funds inwards its multiple revenue streams. In other words, everything Yudof in addition to the Regents convey said well-nigh the dire country of the UC’s finances is only untrue.