Financial Standards Measures
(Farms Sorted By Farm Type)

Avg. Of Crop and Crop and Crop and
All Farms Crop Dairy Hog Beef Dairy Hog Beef Other
Number of farms 2417 1244 449 61 38 111 93 102 316
Liquidity
Current ratio 1.94 2.06 1.72 1.35 1.16 2.43 2.12 1.69 1.86
Working capital 220,642 289,369 94,677 240,012 31,096 193,665 373,244 168,300 131,384
Working capital to gross inc 31.4 % 41.6 % 12.5 % 10.8 % 10.8 % 34.8 % 37.2 % 34.4 % 29.1 %
Solvency (market)
Farm debt to asset ratio 47 % 46 % 48 % 58 % 58 % 39 % 44 % 46 % 49 %
Farm equity to asset ratio 53 % 54 % 52 % 42 % 42 % 61 % 56 % 54 % 51 %
Farm debt to equity ratio 0.87 0.84 0.93 1.37 1.40 0.63 0.78 0.85 0.96
Profitability (cost)
Rate of return on farm assets 10.5 % 13.4 % 8.2 % -2.9 % -0.2 % 7.5 % 5.6 % 7.5 % 9.9 %
Rate of return on farm equity 14.5 % 19.6 % 10.5 % -14.8 % -8.8 % 8.5 % 5.4 % 8.7 % 14.5 %
Operating profit margin 21.8 % 25.4 % 17.4 % -8.2 % -0.8 % 16.7 % 14.2 % 20.3 % 24.6 %
Net farm income 140,566 188,282 110,039 -75,653 1,558 102,776 115,792 78,430 95,936
EBIDTA 207,359 254,777 178,391 51,065 36,601 155,862 207,987 131,501 156,086
Repayment Capacity
Capital debt repayment capacity 155,831 200,159 127,575 -28,897 19,017 103,353 138,944 94,196 117,623
Capital debt repayment margin 90,674 138,935 47,554 -138,389 -11,566 51,081 46,365 48,786 59,347
Replacement margin 79,613 126,696 39,969 -151,069 -16,244 36,688 29,213 39,704 49,755
Term debt coverage ratio 2.39 3.27 1.59 -0.26 0.62 1.98 1.50 2.07 2.02
Replacement coverage ratio 2.04 2.72 1.46 -0.24 0.54 1.55 1.27 1.73 1.73
Efficiency
Asset turnover rate (cost) 48.0 % 53.0 % 47.1 % 35.4 % 23.2 % 44.6 % 39.5 % 37.3 % 40.1 %
Operating expense ratio 70.5 % 63.4 % 76.5 % 97.7 % 87.3 % 72.0 % 79.3 % 73.2 % 65.4 %
Depreciation expense ratio 4.9 % 5.1 % 4.5 % 2.5 % 4.5 % 5.3 % 4.9 % 4.6 % 6.8 %
Interest expense ratio 4.8 % 4.8 % 4.5 % 3.1 % 6.9 % 4.4 % 4.5 % 6.2 % 6.6 %
Net farm income ratio 20.0 % 27.1 % 14.5 % -3.4 % 0.5 % 18.5 % 11.5 % 16.0 % 21.3 %

A minimum of 10 farms required per column. Some columns were omitted.

Copyright (c) 2005-2009, University of Minnesota
Data Source(s): All Minnesota Groups, 2319 farms
Southwest Minnesota Farm Business Management Association, 98 farms

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Report Summary

1. Report number 142382
2. Location
    State: Minnesota
3. Farm Characteristics
    Year(s): 2008

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