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 | 1.43 | 1.65 | 1.59 | 1.51 |
| Working capital | 102,661 | 45,070 | 96,270 | 227,566 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 51 % | 46 % | 45 % | 50 % |
| Farm equity to asset ratio | 49 % | 54 % | 55 % | 50 % |
| Farm debt to equity ratio | 102 % | 84 % | 83 % | 98 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 11.7 % | 0.8 % | 9.8 % | 16.0 % |
| Rate of return on farm equity | 17.9 % | -2.6 % | 13.2 % | 26.5 % |
| Operating profit margin | 21.6 % | 2.0 % | 18.6 % | 29.6 % |
| Net farm income | 136,669 | 14,057 | 100,650 | 340,582 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 169 % | 87 % | 168 % | 205 % |
| Capital replacement margin | 50,005 | -2,523 | 35,792 | 150,249 |
| Efficiency | ||||
| Asset turnover rate (cost) | 54.5 % | 42.4 % | 52.5 % | 53.8 % |
| Operating expense ratio | 69.2 % | 83.6 % | 70.3 % | 62.8 % |
| Depreciation expense ratio | 2.2 % | 3.3 % | 3.5 % | 0.9 % |
| Interest expense ratio | 4.9 % | 5.4 % | 4.4 % | 4.9 % |
| Net farm income ratio | 23.6 % | 7.7 % | 21.8 % | 31.4 % |