NCTC FBM - Moorhead
PROFITABILITY AND LIQUIDITY ANALYSIS, 1999
Northland Community and Technical College Farm Business Mgt.
(Farms sorted by Net Farm Income)
Avg. Of Avg. Of Avg. Of Avg. Of Avg. Of Avg. Of
All Farms Low 20% High 20% All Farms Low 20% High 20%
---------- ---------- ---------- --------- -------- --------
Number of Farms 72 14 14 72 14 14
PROFITABILITY ------------- Cost --------------- ------------ Market --------------
Net farm income 78041 -6027 208865 57014 -16047 180680
Labor and management earnings 53535 -15019 166173 22750 -28395 124109
Rate of return on assets 8.7 % 0.2 % 13.9 % 4.8 % -1.5 % 9.1 %
Rate of return on equity 10.5 % -18.3 % 21.8 % 3.8 % -18.1 % 13.4 %
Operating profit margin 16.4 % 0.3 % 24.6 % 12.3 % -3.7 % 21.4 %
Asset turnover rate 52.9 % 50.1 % 56.3 % 39.4 % 40.8 % 42.4 %
Interest on farm net worth 24507 8992 42692 34264 12347 56571
Farm interest expense 41983 28111 63368 41983 28111 63368
Value of operator lbr and mgmt. 35294 21249 54041 35294 21249 54041
Return on farm assets 84730 834 218193 63703 -9186 190008
Average farm assets 978285 495099 1574110 1314464 608664 2090713
Return on farm equity 42747 -27276 154825 21720 -37296 126639
Average farm equity 405394 149319 711539 570814 205791 942857
Value of farm production 517256 248164 886735 517256 248164 886735
Average Of Average Of Average Of
All Farms Low 20% High 20%
---------- --------- ---------
Number of Farms 72 14 14
LIQUIDITY (Cash)
Net cash farm income 56581 -23470 150663
Net nonfarm income 17509 29855 7938
Family living and taxes 49273 32566 74465
Real estate principal payments 10027 6012 20534
Cash available for interm. debt 14790 -32194 63601
Average intermediate debt 218210 118254 269057
Years to turnover interm. debt 14.8 ** 4.2
Expense as a % of income 88 % 110 % 82 %
Interest as a % of income 8 % 11 % 8 %
LIQUIDITY (Accrual)
Total accrual farm income 518129 249536 889134
Total accrual farm expense 421446 241768 646784
Net accrual operating income 96683 7768 242350
Net nonfarm income 17509 29855 7938
Family living and taxes 49273 32566 74465
Real estate principal payments 10027 6012 20534
Available for intermediate debt 54892 -956 155288
Average intermediate debt 218210 118254 269057
Years to turnover interm. debt 4.0 ** 1.7
Expense as a % of income 81 % 97 % 73 %
Interest as a % of income 8 % 11 % 7 %
** Income insufficient to meet debt servicing requirements