Q&A with the Dean Features Downloads Financials Archive
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Financial Highlights

total revenues

Total revenues increased by $46 million, or 11.4 percent, from last year to $451 million. Total revenues have risen at a compound annual growth rate of 8.9 percent for the past five years.

mba program revenues

MBA Program revenues grew by $5 million, or 6.5 percent, to $82 million as a result of normal increases in tuition and fees and increased enrollment in the prematriculation programs and Immersion activities.

executive education and publishing revenues

Revenues from Executive Education and Harvard Business Publishing (HBP) increased by a combined $26 million, or 11.9 percent, to $245 million. Executive Education continued to see strong returns on investments in corporate relations and marketing, and further expanded its program offerings. HBP revenue growth was led by $11 million of increased eLearning and case sales, offsetting flat revenues in the Harvard Business Review and a decrease in press activity.

endowment income

Endowment income distributed for operations rose by $16 million, or 20.5 percent, the result of continued higher-than-usual increases in the endowment payout related to superior performance by Harvard Management Company. The increased distribution was used primarily to fund financial aid awards and faculty research.

operating expenses

Operating expenses increased by $48 million, or 12.8 percent, to $423 million, largely reflecting an increase in variable costs due to increased activity in Executive Education and HBP, as well as an 18.2 percent increase in total fellowship support.

cash from operations

Cash from operations decreased by $2 million to $28 million. Gifts from prior years, available to be spent pursuant to the donors’ specifications, added $41 million to the School’s cash flow, compared with $14 million dollars last year. The increase is attributable to the School’s $26 million share of a University-wide strategic decapitalization from the endowment, drawn from appreciation resulting from the Harvard endowment’s strong investment returns in recent years. Cash before capital activities thus increased by $25 million, from $44 million to $69 million.