TABLE 7
FINANCIAL STANDARDS MEASURES, 2001
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 452 90 91
LIQUIDITY
Current ratio 1.41 0.81 2.17
Working capital 48,013 -28,264 167,720
SOLVENCY (cost)
Farm debt to asset ratio 48 % 62 % 34 %
Farm equity to asset ratio 52 % 38 % 66 %
Farm debt to equity ratio 94 % 162 % 51 %
PROFITABILITY (cost)
Rate of return on farm assets 4.3 % -5.2 % 10.0 %
Rate of return on farm equity 2.2 % -28.8 % 11.8 %
Operating profit margin 11.8 % -14.8 % 25.2 %
Net farm income 32,408 -27,437 110,382
REPAYMENT CAPACITY
Term debt coverage ratio 101 % -12 % 206 %
Capital replacement margin 331 -48,850 52,978
EFFICIENCY
Asset turnover rate (cost) 36.6 % 34.9 % 39.6 %
Operating expense ratio 72.1 % 91.5 % 64.4 %
Depreciation expense ratio 6.8 % 10.0 % 5.4 %
Interest expense ratio 8.0 % 11.8 % 4.9 %
Net farm income ratio 13.1 % -13.3 % 25.3 %