TABLE 4
PROFITABILITY AND LIQUIDITY 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
PROFITABILITY (assets valued at cost)
Net farm income 32,408 -27,437 110,382
Labor and management earnings 13,529 -38,549 71,247
Rate of return on assets 4.3 % -5.2 % 10.0 %
Rate of return on equity 2.2 % -28.8 % 11.8 %
Operating profit margin 11.8 % -14.8 % 25.2 %
Asset turnover rate 36.6 % 34.9 % 39.6 %
Interest on farm net worth 18,879 11,112 39,135
Farm interest expense 19,674 24,397 21,410
Value of operator lbr and mgmt. 25,461 24,142 33,308
Return on farm assets 26,621 -27,182 98,485
Average farm assets 613,582 525,946 988,362
Return on farm equity 6,947 -51,579 77,074
Average farm equity 312,021 178,879 652,166
Value of farm production 224,678 183,566 391,014
Avg. Of
All Farms Low 20% High 20%
Number of farms 452 90 91
LIQUIDITY (cash)
Net cash farm income 51,299 17,601 109,194
Net nonfarm income 18,724 23,606 13,701
Family living and taxes 40,497 38,540 53,767
Real estate principal payments 7,422 7,485 10,481
Cash available for interm. debt 22,104 -4,818 58,647
Average intermediate debt 108,719 136,937 115,968
Years to turnover interm. debt 4.9 ** 2.0
Expense as a % of income 79 % 92 % 74 %
Interest as a % of income 8 % 10 % 5 %
LIQUIDITY (accrual)
Total accrual farm income 247,172 206,854 436,880
Total accrual operating expense 198,008 213,700 302,950
Net accrual operating income 49,164 -6,846 133,929
Net nonfarm income 18,724 23,606 13,701
Family living and taxes 40,497 38,540 53,767
Real estate principal payments 7,422 7,485 10,481
Available for intermediate debt 19,969 -29,265 83,382
Average intermediate debt 108,719 136,937 115,968
Years to turnover interm. debt 5.4 ** 1.4
Expense as a % of income 80 % 103 % 69 %
Interest as a % of income 8 % 12 % 5 %
** Income insufficient to meet debt servicing requirements