TABLE 4
PROFITABILITY AND LIQUIDITY MEASURES, 2002
Profitability Measures
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
PROFITABILITY
(assets valued at cost)
Net farm income
44,536 -17,215 136,043
Labor and management earnings 24,530
-28,346 96,819
Rate of return on assets
5.7 % -3.8 % 11.6 %
Rate of return on equity
5.6 % -20.6 % 15.0 %
Operating profit margin
15.3 % -15.8 % 25.1 %
Asset turnover rate
37.0 % 24.3 % 46.3 %
Interest on farm net worth
20,007 11,131 39,224
Farm interest expense
18,035 17,943 20,878
Value of operator lbr and mgmt. 26,126
19,935 38,282
Return on farm assets
36,445 -19,207 118,639
Average farm assets
643,236 500,499 1,019,175
Return on farm equity
18,410 -37,150 97,760
Average farm equity
330,846 180,622 653,729
Value of farm production
238,132 121,374 472,170
Avg. Of
All Farms Low 20% High 20%
Number of
farms
431 86
87
LIQUIDITY
(cash)
Net cash farm income
48,637 15,819 96,182
Net nonfarm income
19,573 22,223 14,907
Family living and taxes
39,435 28,720 53,585
Real estate principal payments 8,096
5,607 9,876
Cash available for interm. debt 20,679
3,716 47,628
Average intermediate debt
108,328 114,114 110,858
Years to turnover interm. debt
5.2 30.7
2.3
Expense as a % of income
80 % 91 %
77 %
Interest as a % of income
7 % 10 %
5 %
LIQUIDITY
(accrual)
Total accrual farm income
259,799 167,688 489,759
Total accrual operating expense 198,733
168,992 325,273
Net accrual operating income
61,066 -1,304 164,487
Net nonfarm income
19,573 22,223 14,907
Family living and taxes
39,435 28,720 53,585
Real estate principal payments 8,096
5,607 9,876
Available for intermediate debt 33,108
-13,408 115,933
Average intermediate debt
108,328 114,114 110,858
Years to turnover interm. debt
3.3 **
1.0
Expense as a % of income
76 % 101 %
66 %
Interest as a % of income
7 % 11 %
4 %
** Income insufficient to meet debt servicing requirements