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 | 78 | 15 | 15 | 16 |
| Liquidity | ||||
| Current ratio | 1.71 | 2.25 | 1.71 | 1.84 |
| Working capital | 160,543 | 58,977 | 158,417 | 319,582 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 47 % | 42 % | 49 % | 46 % |
| Farm equity to asset ratio | 53 % | 58 % | 51 % | 54 % |
| Farm debt to equity ratio | 90 % | 73 % | 96 % | 85 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 10.2 % | 3.5 % | 9.6 % | 11.9 % |
| Rate of return on farm equity | 14.2 % | 1.6 % | 13.9 % | 16.8 % |
| Operating profit margin | 18.9 % | 7.9 % | 18.0 % | 22.9 % |
| Net farm income | 136,558 | 22,313 | 122,619 | 283,725 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 193 % | 133 % | 193 % | 228 % |
| Capital replacement margin | 64,147 | 6,216 | 59,805 | 149,442 |
| Efficiency | ||||
| Asset turnover rate (cost) | 53.6 % | 44.4 % | 53.2 % | 51.8 % |
| Operating expense ratio | 69.4 % | 75.1 % | 70.0 % | 66.1 % |
| Depreciation expense ratio | 4.1 % | 5.7 % | 4.8 % | 3.6 % |
| Interest expense ratio | 4.5 % | 5.8 % | 4.4 % | 4.3 % |
| Net farm income ratio | 22.0 % | 13.4 % | 20.9 % | 26.0 % |