Eton College

Eton runs a deliberate operating deficit, so its income-statement figures need reading in context. The college depends on fees for only about 60% of its income and holds an endowment of roughly £360m within total funds of around £560m; it spends investment income — and, in years of heavy building work, some reserves — on the school rather than balancing the books from fees alone. That is why the operating surplus, overall margin and income-trend lines read poorly and the accounts show five consecutive deficits, with a large capital programme (capital spend running close to four times depreciation) pulling the bottom line down further.

None of this reflects financial distress. The balance sheet is exceptionally strong — around 20 months of free reserves and a 'very strong' resilience rating — and on this profile it is the reserves, funds and spending figures that give the truest picture, not the fee-based operating metrics.