NCTC FBM - Moorhead
FINANCIAL GUIDELINES MEASURES, 1999
Northland Community and Technical College Farm Business Mgt.
Moorhead
(Farms sorted by Net Farm Income)
Average Of Average Of Average Of
All Farms Low 20 % High 20 %
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Number of Farms 72 14 14
LIQUIDITY Beginning Ending Beginning Ending Beginning Ending
Current ratio 0.99 1.23 0.80 0.99 1.06 1.52
Working capital -3185 50759 -27898 -1691 20557 159778
SOLVENCY (Market) Beginning Ending Beginning Ending Beginning Ending
Farm debt to asset ratio 56 % 56 % 63 % 67 % 56 % 52 %
Farm equity to asset ratio 44 % 44 % 37 % 33 % 44 % 48 %
Farm debt to equity ratio 130 % 128 % 173 % 203 % 127 % 110 %
PROFITABILITY Cost Market Cost Market Cost Market
Rate of return on farm assets 8.7 % 4.8 % 0.2 % -1.5 % 13.9 % 9.1 %
Rate of return on farm equity 10.5 % 3.8 % -18.3 % -18.1 % 21.8 % 13.4 %
Operating profit margin 16.4 % 12.3 % 0.3 % -3.7 % 24.6 % 21.4 %
Net farm income 78041 57014 -6027 -16047 208865 180680
REPAYMENT CAPACITY Cash Accrual Cash Accrual Cash Accrual
Term debt coverage ratio 69 % 120 % -26 % 55 % 109 % 188 %
Capital replacement margin -24428 15674 -48533 -17295 10825 102513
EFFICIENCY
Asset turnover rate (market) 39.4 % 40.8 % 42.4 %
Operating expense ratio 73.2 % 85.6 % 65.6 %
Depreciation expense ratio 3.6 % 5.5 % 3.8 %
Interest expense ratio 8.1 % 11.3 % 7.1 %
Net farm income ratio 15.1 % -2.4 % 23.5 %
LABOR ANALYSIS
Average Of Average Of Average Of
All Farms Low 20 % High 20 %
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Number of Farms 72 14 14
Total unpaid labor hours 2188 1643 2786
Total hired labor hours 2224 547 3221
Total labor hours per farm 4411 2190 6006
Value of farm production / hour 117.26 113.32 147.63
Net farm income / unpaid hour 35.68 -3.67 74.98