Financial health and financial sustainability of Rajabhat University
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Abstract
Intensifying competition among higher education institutions and a declining number of student admissions have resulted in Rajabhat Universities' income being insufficient to cover rising expenditures. This study aims to investigate the financial health and financial sustainability of 38 Rajabhat Universities, divided into five geographic groups: Rattanakosin Rajabhat University, Central Region Rajabhat Universities, Northern Region Rajabhat Universities, Southern Region Rajabhat Universities, and Northeastern Region Rajabhat Universities. The analysis of financial health and financial sustainability covers four dimensions: liquidity, activity, solvency, and profitability. The financial data used in this study comprise the statement of financial position and the statement of comprehensive income for fiscal year 2022. The study focuses on analyzing the average financial indicators of Rajabhat Universities across the five geographic groups, as well as the overall average of all Rajabhat Universities. These data were obtained from financial audit reports prepared by the Office of the Auditor General of Thailand. Financial ratios and descriptive statistics, namely mean, maximum, minimum, and percentage, were employed for analysis. The findings reveal that Rajabhat Universities and the Rajabhat University groups maintain a stable financial position, with strong liquidity, sound management, low debt levels, and stable capital. However, the financial sustainability of Rajabhat Universities and the Rajabhat University groups was found to be unstable, with a notable problem of low profitability. For policy recommendations, Rajabhat Universities and the Rajabhat University groups should explore alternative revenue sources by leveraging surplus capital and liquid assets, and should seek to improve cost efficiency, particularly with regard to personnel expenses, which constitute a disproportionately high share of expenditures and have a significant impact on operational performance
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