ANALISIS AND RATIOS

NET INCOME
OVERHEAD EXPENSES
TERM DEBT PRINCIPAL PAYMENTS
INTEREST ON TERM DEBT
OPERATING EXPENSES
CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
TOTAL LIABILITIES
NET WORTH

LIQUIDITY RATIOS CALCULATION

CURRENT ASSETS/CURRENT LIABILITIES (ABILITY TO MEET CURRENT
CURRENT RATIO OBLIGATIONS AS THEY COME DUE IN THE NEXT 12 MONTHS)
CURRENT LIABILITIES/TOTAL LIABILITIES
DEBT STRUCTURE RATIO (AMOUNT OF DEBT THAT IS DUE IN THE NEXT 12 MONTHS)
CURRENT ASSETS-CURRENT LIABILITIES IF CURRENT ASSETS THAT ARE
WORKING CAPITAL OWNED (OWNER FINANCED)
SOLVENCY RATIOS CALCULATION

TOTAL LIABILITIES/NET WORTH (THE NUMBER OF DOLLARSOF DEBTS FOR

LEVERAGE RATIO EVERY $1 IN EQUITY)

TOTAL LIABILITIES/TOTAL ASSETS (PROPORTION OF DEBT COMPARED TO

DEBT RATIO FARM ASSETS OWNED)

NET WORTH/TOTAL ASSETS (PROPORTION OF ASSETS THAT ARE OWNED

EQUITY RATIO (OWNER FINANCED)
PROFITABILITY RATIOS CALCULATION
[(NET INCOME +INTEREST ON TERM DEBT - OPERATING EXPENSES) /
AVERAGE TOTAL ASSETS] X 100 (REVENUE GENERATED AS A % OF ASSETS
PERCENT RETURN ON ASSETS (COMPARE TU RETURN IF MONEY WERE INVESTED OFF FARM)
TOTAL AVAILABLE FOR PROJECTED TERM DEBT PAYMENTS / TOTAL
PROJECTED TERM DEBT PAYMENTS (DOES THE FARM HAVE ENOUGH
DEBT SERVICE MARGINS AVAILABLE CASH TO PAY DEBT REQUIREMENTS)
 ANALISIS AND RATIOS Your farm
$ 554,953
$ 1,452,978
$ 129,380
$ 102,084
$ 73,259
$ 2,591,404
$ 4,853,090
$ 965,588
$ 3,136,921
$ 1,716,169

CALCULATION YOUR SCORE

RRENT ASSETS/CURRENT LIABILITIES (ABILITY TO MEET CURRENT
OBLIGATIONS AS THEY COME DUE IN THE NEXT 12 MONTHS) 2.68
NT LIABILITIES/TOTAL LIABILITIES
(AMOUNT OF DEBT THAT IS DUE IN THE NEXT 12 MONTHS) 30.8%
RRENT ASSETS-CURRENT LIABILITIES IF CURRENT ASSETS THAT ARE
OWNED (OWNER FINANCED) $ 1,625,816
CALCULATION

L LIABILITIES/NET WORTH (THE NUMBER OF DOLLARSOF DEBTS FOR

EVERY $1 IN EQUITY) 1.83

L LIABILITIES/TOTAL ASSETS (PROPORTION OF DEBT COMPARED TO

FARM ASSETS OWNED) 0.65

WORTH/TOTAL ASSETS (PROPORTION OF ASSETS THAT ARE OWNED

(OWNER FINANCED) 0.35
CALCULATION
ET INCOME +INTEREST ON TERM DEBT - OPERATING EXPENSES) /
AGE TOTAL ASSETS] X 100 (REVENUE GENERATED AS A % OF ASSETS
(COMPARE TU RETURN IF MONEY WERE INVESTED OFF FARM) 12.0
OTAL AVAILABLE FOR PROJECTED TERM DEBT PAYMENTS / TOTAL
OJECTED TERM DEBT PAYMENTS (DOES THE FARM HAVE ENOUGH
AVAILABLE CASH TO PAY DEBT REQUIREMENTS) 2.52