Our 2024 recently committed to a D3, and we definitely looked into the financials, enrollment histories, etc. of the schools. The demographics simply don't favor schools with low endowments (or large decreases in endowment values) and shrinking enrollments. One school we liked used a significant chunk of its endowment to pay off debt, which was a more of a "sideways" move, but it also made some other blunders in the past few years which were acknowledged but still a problem. Nonetheless, this school was scratched from the list.
In a post earlier this year I had mentioned that we looked at financials/endowments and was asked as to why it mattered. A college's financial stability is important -- we don't want 2024 matriculating at an institution that has to start cutting academic/athletic programs to make ends meet.
The privates aren't the only ones having issues -- the University of Arizona situation is certainly getting unwanted attention as noted in the link posted by @CollegebaseballInsights...
The sister (public) university of where my wife and I graduated had an enrollment of almost 25,000 when we were in college -- more than double our school's. That school's enrollment is now about 50% lower, and is smaller than our university's. That same school, while now smaller, still receives about 2/3's of the funds allocated to the system by the state, and recently had to borrow $30 million from our school, which had the money to loan. A history of poor decision-making led to this situation, and that school's current regime doesn't appear to by any closer to solving the problem. The state's financial situation isn't helping, either...