Financial Standards Measures
Farm Business Management - Moorhead
Northland Community and Technical College
(Farms Sorted By Net Farm Income)
| Avg. Of | ||||
| All Farms | Low 20% | 40 - 60% | High 20% | |
| Number of farms | 75 | 15 | 15 | 15 |
| Liquidity | ||||
| Current ratio | 1.19 | 0.85 | 1.40 | 2.01 |
| Working capital | 56,887 | -72,665 | 58,874 | 303,081 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 49 % | 56 % | 50 % | 38 % |
| Farm equity to asset ratio | 51 % | 44 % | 50 % | 62 % |
| Farm debt to equity ratio | 97 % | 126 % | 99 % | 61 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 1.8 % | -4.7 % | 3.5 % | 6.6 % |
| Rate of return on farm equity | -1.6 % | -18.0 % | 1.3 % | 7.1 % |
| Operating profit margin | 4.0 % | -12.3 % | 8.6 % | 14.3 % |
| Net farm income | 38,995 | -72,154 | 36,361 | 170,283 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 44 % | -49 % | 77 % | 156 % |
| Capital replacement margin | -42,231 | -177,604 | -11,221 | 48,226 |
| Efficiency | ||||
| Asset turnover rate (cost) | 45.5 % | 38.1 % | 40.5 % | 46.5 % |
| Operating expense ratio | 83.0 % | 96.1 % | 76.8 % | 74.4 % |
| Depreciation expense ratio | 4.4 % | 6.7 % | 5.2 % | 3.4 % |
| Interest expense ratio | 5.8 % | 8.4 % | 7.0 % | 4.0 % |
| Net farm income ratio | 6.8 % | -11.3 % | 11.1 % | 18.1 % |