TERMS AND DEFINITIONS
The following list briefly describes some of the terms readers will encounter when looking at the dataset. For a more in-depth explanation of the metrics, look at the Explanations tab. If there are any terms you have encountered that are not explained here, or you think we need to do a better job of explaining, please contact Matt.
|
Indicator |
What It Means in (Relatively) Plain English |
| Total Income (£m) | All money the university receives from all sources in the year. Shows the overall financial scale. |
| Total Income excl. Investment Income, Donations & Endowments (£m) | Income from core operations only (teaching, research, services). Shows reliance on non-core income. |
| Total Expenditure (£m) | The full cost of running the university. Shows how expensive operations are. |
| Operating Surplus (£m) | Surplus/deficit from day‑to‑day activities only. A measure of operational sustainability. |
| Reported Overall Surplus / (Deficit) (£m) | Final bottom‑line result including all gains/losses (e.g., investments, pensions). |
| Total Net Assets (£m) | What the university owns minus what it owes. Reflects long‑term financial strength. |
| Cash & Short‑Term Investments (£m) | Cash available quickly to meet short‑term needs. A key liquidity measure. |
| Total Borrowings (£m) | The value of loans and other debts owed by the university to lenders. |
| Net Cash Flows from Operating Activities (£m) | Cash generated from normal operations. Indicates real‑world financial health. |
| Capital Expenditure (£m) | Spending on long-term assets like buildings and equipment. Shows investment in infrastructure. This does not include expenditure on maintenance of buildings. |
| Tuition Fee & Education Contract Income (£m) | All income from teaching students and education contracts. |
| Tuition Fee Income as % of Total Income | Shows the university’s dependence on tuition fees. |
| % Tuition Fee Income – Home Students | Indicates reliance on UK-domiciled full-time students. |
| % Tuition Fee Income – International Students | Indicates reliance on higher‑fee, more volatile international recruitment. |
| Research Income as % of Total Income | Shows the significance of research activity. |
| Income per Staff FTE (£’000) | Measures income generated per full-time staff. A productivity indicator. |
| Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA £m). | EBITDA is a way of showing how much money an organisation makes from its everyday activities before taking into account things like loan interest, taxes, or the ageing of buildings and equipment. |
| Adjusted EBITDA (£m) | EBITDA adjusted for unusual items (pensions, restructuring). Shows underlying performance. |
| Staff Costs as % of Total Income | How much of income goes on staffing. |
| Operating Costs as % of Total Income | How much income is spent on non‑staff costs. |
| Adjusted EBITDA as % of Income | The operating margin excluding unusual items. |
| Staff Cost per Staff FTE (£’000) | Average cost of employing one full-time staff member. |
| Days Cash on Hand | Shows how many days a university can cover its operating expenses with its current cash reserves, assuming no new income is received, indicating its short-term liquidity |
| Current Asset Ratio | Measures short-term solvency (ability to pay short-term debts). |
| Operating Cashflow Margin (%) | Shows how effectively income is converted into cash. Note that income is recognised in accounts by an invoice being issued but the cash is available for the university to use only when the invoice has been paid. |
| Unrestricted Reserves as % of Income | Financial flexibility and resilience measure. |
| Note that reserves are not always represented by cash. | |
| External Borrowing as % of Income | Level of debt relative to income (gearing). |
| Interest Cover Ratio | Ability to meet interest payments from earnings. |
| Gearing Ratio (%) | How much of the university’s assets are funded by debt (from financial institutions) |
| Adjusted EBITDA to Debt Ratio | How many years it would take to repay debt using adjusted EBITDA. |
