TABLE 4
PROFITABILITY AND LIQUIDITY MEASURES, 2000
North Dakota Farm Business Management Education Program
State Report
(Farms Sorted By Net Farm Income)
Avg. Of
All Farms Low 20% High 20%
Number of farms 475 95 95
PROFITABILITY (assets valued at cost)
Net farm income 54,022 -7,487 142,437
Labor and management earnings 36,397 -15,801 108,163
Rate of return on assets 8.5 % -1.3 % 14.3 %
Rate of return on equity 9.9 % -22.2 % 19.0 %
Operating profit margin 20.9 % -3.8 % 30.7 %
Asset turnover rate 40.8 % 33.2 % 46.4 %
Interest on farm net worth 17,625 8,315 34,274
Farm interest expense 20,928 23,523 25,440
Value of operator lbr and mgmt. 25,177 21,575 33,653
Return on farm assets 49,773 -5,539 134,223
Average farm assets 582,750 442,002 941,781
Return on farm equity 28,845 -29,061 108,783
Average farm equity 290,974 130,803 571,229
Value of farm production 237,688 146,741 437,296
Avg. Of
All Farms Low 20% High 20%
Number of farms 475 95 95
LIQUIDITY (cash
Net cash farm income 45,172 12,837 90,816
Net nonfarm income 18,472 24,675 13,279
Family living and taxes 37,498 29,712 49,190
Real estate principal payments 7,390 6,206 10,199
Cash available for interm. debt 18,756 1,593 44,707
Average intermediate debt 105,045 113,826 131,505
Years to turnover interm. debt 5.6 71.4 2.9
Expense as a % of income 80 % 92 % 78 %
Interest as a % of income 9 % 13 % 6 %
LIQUIDITY (accrual)
Total accrual farm income 254,320 164,082 472,852
Total accrual operating expense 187,240 157,426 312,751
Net accrual operating income 67,079 6,656 160,101
Net nonfarm income 18,472 24,675 13,279
Family living and taxes 37,498 29,712 49,190
Real estate principal payments 7,390 6,206 10,199
Available for intermediate debt 40,663 -4,587 113,992
Average intermediate debt 105,045 113,826 131,505
Years to turnover interm. debt 2.6 ** 1.2
Expense as a % of income 74 % 96 % 66 %
Interest as a % of income 8 % 14 % 5 %
** Income insufficient to meet debt servicing requirements