Financial Standards Measures
Farm Business Management - Moorhead
Northland Community & Technical College
(Farms Sorted By Net Farm Income)
| Avg. Of | ||||
| All Farms | Low 20% | 40 - 60% | High 20% | |
| Number of farms | 77 | 15 | 16 | 16 |
| Liquidity | ||||
| Current ratio | 1.53 | 2.11 | 1.23 | 1.98 |
| Working capital | 164,275 | 49,794 | 77,039 | 452,634 |
| Solvency (market) | ||||
| Farm debt to asset ratio | 47 % | 39 % | 54 % | 42 % |
| Farm equity to asset ratio | 53 % | 61 % | 46 % | 58 % |
| Farm debt to equity ratio | 88 % | 65 % | 120 % | 73 % |
| Profitability (cost) | ||||
| Rate of return on farm assets | 14.1 % | 4.7 % | 13.7 % | 18.8 % |
| Rate of return on farm equity | 20.4 % | 3.2 % | 23.3 % | 26.5 % |
| Operating profit margin | 24.5 % | 12.1 % | 24.5 % | 30.6 % |
| Net farm income | 203,139 | 22,851 | 171,430 | 470,226 |
| Repayment Capacity | ||||
| Term debt coverage ratio | 238 % | 158 % | 201 % | 322 % |
| Capital replacement margin | 112,973 | 10,186 | 89,564 | 300,461 |
| Efficiency | ||||
| Asset turnover rate (cost) | 57.4 % | 38.6 % | 55.9 % | 61.6 % |
| Operating expense ratio | 66.0 % | 69.8 % | 65.2 % | 61.8 % |
| Depreciation expense ratio | 2.8 % | 5.6 % | 3.4 % | 2.1 % |
| Interest expense ratio | 5.7 % | 7.5 % | 7.0 % | 4.7 % |
| Net farm income ratio | 25.5 % | 17.1 % | 24.3 % | 31.5 % |