TABLE 7
FINANCIAL STANDARDS MEASURES, 2002
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
431 86
87
LIQUIDITY
Current ratio
1.50 0.95
2.21
Working capital
60,503 -5,362 202,932
SOLVENCY
(cost)
Farm debt to asset ratio
49 % 62 %
37 %
Farm equity to asset ratio
51 % 38 %
63 %
Farm debt to equity ratio
96 % 163 %
59 %
PROFITABILITY
(cost)
Rate of return on farm assets
5.7 % -3.8 % 11.6 %
Rate of return on farm equity
5.6 % -20.6 % 15.0 %
Operating profit margin
15.3 % -15.8 % 25.1 %
Net farm income
44,536 -17,215 136,043
REPAYMENT
CAPACITY
Term debt coverage ratio
131 % 21 %
289 %
Capital replacement margin
13,042 -31,354 88,510
EFFICIENCY
Asset turnover rate (cost)
37.0 % 24.3 % 46.3 %
Operating expense ratio
69.6 % 90.1 % 62.2 %
Depreciation expense ratio
6.4 % 9.5 %
5.8 %
Interest expense ratio
6.9 % 10.7 %
4.3 %
Net farm income ratio
17.1 % -10.3 % 27.8 %