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 2446 1354 420 46 43 137 79 100 264
Liquidity
Current ratio 2.12 2.22 2.00 1.59 1.45 1.96 2.47 2.00 1.83
Working capital 282,369 357,693 120,475 468,110 127,827 174,644 581,746 232,938 134,734
Working capital to gross inc 37.6 % 47.6 % 17.5 % 16.8 % 23.4 % 28.4 % 39.7 % 41.3 % 29.2 %
Solvency (market)
Farm debt to asset ratio 45 % 43 % 47 % 56 % 54 % 47 % 42 % 48 % 47 %
Farm equity to asset ratio 55 % 57 % 53 % 44 % 46 % 53 % 58 % 52 % 53 %
Farm debt to equity ratio 0.81 0.76 0.90 1.29 1.15 0.87 0.71 0.92 0.89
Profitability (cost)
Rate of return on farm assets 12.5 % 14.0 % 7.6 % 16.6 % 9.2 % 7.7 % 14.9 % 12.8 % 10.6 %
Rate of return on farm equity 18.9 % 20.8 % 10.0 % 34.0 % 13.7 % 10.6 % 22.1 % 20.8 % 16.4 %
Operating profit margin 27.1 % 28.9 % 17.5 % 31.9 % 34.8 % 18.7 % 32.0 % 30.7 % 26.5 %
Net farm income 191,826 233,776 103,067 364,318 91,908 116,380 374,406 140,617 109,839
EBIDTA 262,862 306,526 170,082 485,140 133,182 184,657 488,925 195,342 169,634
Repayment Capacity
Capital debt repayment capacity 213,469 252,573 126,678 415,198 110,155 138,787 408,243 162,253 134,218
Capital debt repayment margin 142,687 182,595 55,581 301,505 72,618 67,104 295,768 112,513 66,552
Replacement margin 127,301 164,734 44,807 288,773 66,764 51,194 269,468 101,602 56,177
Term debt coverage ratio 3.02 3.61 1.78 3.65 2.93 1.94 3.63 3.26 1.98
Replacement coverage ratio 2.48 2.88 1.55 3.28 2.54 1.58 2.94 2.68 1.72
Efficiency
Asset turnover rate (cost) 46.1 % 48.3 % 43.3 % 51.8 % 26.4 % 41.2 % 46.7 % 41.6 % 39.8 %
Operating expense ratio 65.0 % 59.2 % 75.4 % 82.6 % 75.6 % 69.9 % 66.7 % 65.3 % 63.3 %
Depreciation expense ratio 5.3 % 5.7 % 5.1 % 1.9 % 2.8 % 6.1 % 4.5 % 4.9 % 6.9 %
Interest expense ratio 4.3 % 4.2 % 4.7 % 2.7 % 4.7 % 5.1 % 3.4 % 4.9 % 6.0 %
Net farm income ratio 25.5 % 31.1 % 14.9 % 13.1 % 16.8 % 18.9 % 25.5 % 25.0 % 23.8 %

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

Copyright (c) 2005-2009, University of Minnesota
Data Source(s): MnSCU Farm Business Management, 2350 farms
Southwest Minnesota Farm Business Management Association, 96 farms

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Report Summary

1. Report number 192793
2. Location
    State: Minnesota
3. Farm Characteristics
    Year(s): 2010

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