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 | 76 | 15 | 15 | 16 |
| Liquidity | ||||
| Current ratio | 1.45 | 0.97 | 1.08 | 2.13 |
| Working capital | 111,702 | -5,819 | 25,164 | 336,518 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 48 % | 57 % | 57 % | 39 % |
| Farm equity to asset ratio | 52 % | 43 % | 43 % | 61 % |
| Farm debt to equity ratio | 92 % | 131 % | 130 % | 63 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 5.6 % | -1.9 % | 4.7 % | 9.7 % |
| Rate of return on farm equity | 5.9 % | -9.6 % | 3.4 % | 12.0 % |
| Operating profit margin | 11.9 % | -4.4 % | 9.8 % | 19.1 % |
| Net farm income | 84,393 | -6,542 | 62,187 | 208,016 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 99 % | -23 % | 68 % | 194 % |
| Capital replacement margin | -848 | -60,400 | -22,344 | 76,849 |
| Efficiency | ||||
| Asset turnover rate (cost) | 47.1 % | 42.1 % | 47.8 % | 50.9 % |
| Operating expense ratio | 76.5 % | 91.2 % | 79.8 % | 71.3 % |
| Depreciation expense ratio | 3.8 % | 4.6 % | 3.1 % | 2.7 % |
| Interest expense ratio | 5.0 % | 6.1 % | 6.3 % | 3.3 % |
| Net farm income ratio | 14.7 % | -1.9 % | 10.8 % | 22.7 % |