Stanford’s recently reported financial results for the fiscal year 2016 (FY2016), which ended Aug. 31, show a 1 percent increase in the University endowment and a 4 percent ($1.4 billion) increase in consolidated net assets.

The endowment and net assets are now valued $22.4 billion and $37 billion, respectively.

Consolidated net assets encompass the financial positions of the University, Stanford Health Care (SHC), the Lucile Salter Packard Children’s Hospital at Stanford (LPCH) and other majority-owned affiliates of those entities. Non-consolidated net assets that exclude SHC and LPCH increased 4 percent to a total of $31.7 billion, while LPHC’s net assets increased 8 percent or $157 million to $2.2 billion. SHC’s net assets decreased by $6 million or 0.2 percent.

The endowment’s payout rose 7 percent to $1.1 billion, funding 23 percent of the fiscal year’s expenses. At the same time, Stanford’s operating revenues reached $5.2 billion after a $260 million or 5 percent increase from the last fiscal year.

Randy Livingston, vice president for business affairs and chief financial officer, asserted that Stanford maintains a strong financial position.

“Consolidated FY2016 financial results benefited from positive investment performance, strong health care services revenues and the continued generous donor and community support,” Livingston told Stanford News.

However, he said that financial growth faces obstacles as well.

“The prospect of weaker investment returns, pressure on tuition and federal-sponsored research funding, the high cost of Bay Area housing and changes in health care services will continue to challenge us,” Livingston said.

FY2016 results were first shared with Stanford’s Board of Trustees on Dec. 6. They can now be found on the University bondholder website.

Contact Lucy Arnold at lucywa20 ‘at’ stanford.edu.