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 | 73 | 14 | 14 | 15 |
| Liquidity | ||||
| Current ratio | 1.46 | 0.88 | 1.84 | 1.56 |
| Working capital | 91,351 | -16,897 | 106,675 | 207,486 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 51 % | 65 % | 48 % | 50 % |
| Farm equity to asset ratio | 49 % | 35 % | 52 % | 50 % |
| Farm debt to equity ratio | 106 % | 185 % | 91 % | 99 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 9.4 % | 0.3 % | 9.1 % | 13.1 % |
| Rate of return on farm equity | 12.5 % | -11.5 % | 11.7 % | 19.5 % |
| Operating profit margin | 17.7 % | 0.6 % | 13.8 % | 23.7 % |
| Net farm income | 97,296 | 2,058 | 71,888 | 241,501 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 136 % | 50 % | 172 % | 162 % |
| Capital replacement margin | 26,507 | -20,522 | 31,325 | 84,333 |
| Efficiency | ||||
| Asset turnover rate (cost) | 53.4 % | 45.7 % | 66.2 % | 55.0 % |
| Operating expense ratio | 72.5 % | 85.9 % | 75.5 % | 69.0 % |
| Depreciation expense ratio | 3.0 % | 4.3 % | 3.7 % | 1.7 % |
| Interest expense ratio | 6.2 % | 9.0 % | 4.1 % | 5.8 % |
| Net farm income ratio | 18.3 % | 0.8 % | 16.7 % | 23.5 % |