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 | 2504 | 1142 | 462 | 98 | 68 | 134 | 127 | 96 | 371 |
| Liquidity | |||||||||
| Current ratio | 1.62 | 1.55 | 1.49 | 2.14 | 1.43 | 1.79 | 1.89 | 1.55 | 1.56 |
| Working capital | 125,387 | 131,079 | 49,197 | 489,624 | 76,843 | 102,054 | 242,978 | 124,548 | 84,799 |
| Solvency (market) | |||||||||
| Farm debt to asset ratio | 47 % | 49 % | 48 % | 47 % | 50 % | 43 % | 46 % | 47 % | 45 % |
| Farm equity to asset ratio | 53 % | 51 % | 52 % | 53 % | 50 % | 57 % | 54 % | 53 % | 55 % |
| Farm debt to equity ratio | 90 % | 95 % | 91 % | 89 % | 100 % | 75 % | 85 % | 90 % | 82 % |
| Profitability (cost) | |||||||||
| Rate of return on farm assets | 9.3 % | 10.8 % | 5.7 % | 13.4 % | 2.9 % | 6.5 % | 11.7 % | 7.6 % | 8.0 % |
| Rate of return on farm equity | 12.2 % | 15.0 % | 5.1 % | 19.4 % | 0.5 % | 6.8 % | 16.2 % | 8.6 % | 9.8 % |
| Operating profit margin | 20.2 % | 20.8 % | 13.5 % | 26.3 % | 12.8 % | 16.6 % | 26.0 % | 19.9 % | 21.6 % |
| Net farm income | 96,432 | 107,862 | 63,668 | 257,028 | 22,178 | 70,143 | 159,002 | 69,925 | 68,797 |
| Repayment Capacity | |||||||||
| Term debt coverage ratio | 185 % | 215 % | 111 % | 263 % | 137 % | 151 % | 245 % | 195 % | 159 % |
| Capital replacement margin | 51,926 | 65,637 | 7,769 | 162,134 | 11,585 | 27,466 | 110,187 | 43,649 | 34,413 |
| Efficiency | |||||||||
| Asset turnover rate (cost) | 46.0 % | 51.7 % | 42.2 % | 50.8 % | 22.9 % | 39.5 % | 44.9 % | 38.3 % | 37.3 % |
| Operating expense ratio | 71.9 % | 67.7 % | 76.5 % | 81.4 % | 81.7 % | 71.4 % | 70.0 % | 73.5 % | 67.8 % |
| Depreciation expense ratio | 4.8 % | 4.8 % | 4.8 % | 2.8 % | 5.3 % | 5.4 % | 5.1 % | 4.9 % | 6.7 % |
| Interest expense ratio | 5.7 % | 6.2 % | 5.9 % | 2.8 % | 6.0 % | 6.2 % | 4.9 % | 6.5 % | 7.3 % |
| Net farm income ratio | 17.7 % | 21.3 % | 12.8 % | 13.1 % | 7.0 % | 16.9 % | 20.0 % | 15.1 % | 18.3 % |
A minimum of 10 farms required per column. Some columns were omitted.
| Copyright (c) 2005-2007, University of Minnesota | Data Source(s): | Minnesota Farm Business Management Education, 2318 farms | Southwest Minnesota Farm Business Management Association, 109 farms | North Dakota Farm and Ranch Business Management - Red River Valley, 39 farms | Southeast Minnesota Farm Business Management Association, 38 farms |
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Report Summary
| 1. Report number | 88079 |
| 2. Location | |
| State: | Minnesota |
| 3. Farm Characteristics | |
| Year(s): | 2006 |