Financial Standards Measures
Moorhead Farm Business Management
Northland Community and Technical College Farm Business Management
(Farms Sorted By Net Farm Income)
| Avg. Of | |||
| All Farms | Low 20% | High 20% | |
| Number of farms | 72 | 14 | 15 |
| Liquidity | |||
| Current ratio | 1.55 | 1.30 | 1.94 |
| Working capital | 100,298 | 26,625 | 223,866 |
| Solvency (market) | |||
| Farm debt to asset ratio | 56 % | 54 % | 49 % |
| Farm equity to asset ratio | 44 % | 46 % | 51 % |
| Farm debt to equity ratio | 125 % | 116 % | 98 % |
| Profitability (cost) | |||
| Rate of return on farm assets | 12.2 % | 2.9 % | 16.7 % |
| Rate of return on farm equity | 18.0 % | -1.5 % | 25.2 % |
| Operating profit margin | 21.1 % | 6.2 % | 30.8 % |
| Net farm income | 112,493 | 14,525 | 250,524 |
| Repayment Capacity | |||
| Term debt coverage ratio | 165 % | 74 % | 238 % |
| Capital replacement margin | 45,036 | -8,124 | 130,195 |
| Efficiency | |||
| Asset turnover rate (cost) | 57.9 % | 46.2 % | 54.4 % |
| Operating expense ratio | 70.1 % | 79.2 % | 62.5 % |
| Depreciation expense ratio | 2.3 % | 6.5 % | 0.5 % |
| Interest expense ratio | 6.6 % | 7.8 % | 6.0 % |
| Net farm income ratio | 20.9 % | 6.6 % | 31.0 % |