TABLE 4
PROFITABILITY AND LIQUIDITY MEASURES, 2003
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 65,687 -7,197 191,203
Labor and management earnings 44,748 -16,239 143,219
Rate of return on assets 8.1 % -2.3 % 13.6 %
Rate of return on equity 10.8 % -18.2 % 18.3 %
Operating profit margin 19.2 % -7.5 % 27.6 %
Asset turnover rate 42.0 % 31.2 % 49.2 %
Interest on farm net worth 20,940 9,042 47,984
Farm interest expense 17,324 16,195 22,508
Value of operator lbr and mgmt. 28,287 19,189 44,786
Return on farm assets 54,724 -10,192 168,926
Average farm assets 676,875 434,133 1,241,416
Return on farm equity 37,401 -26,386 146,418
Average farm equity 346,707 145,116 799,740
Value of farm production 284,558 135,480 611,023
Avg. Of
All Farms Low 20% High 20%
Number of farms 431 86 87
LIQUIDITY (cash)
Net cash farm income 60,346 15,466 142,642
Net nonfarm income 21,011 27,349 20,673
Family living and taxes 40,524 30,335 60,928
Real estate principal payments 8,955 7,934 12,304
Cash available for interm. debt 31,878 4,546 90,083
Average intermediate debt 117,749 107,280 151,317
Years to turnover interm. debt 3.7 23.6 1.7
Expense as a % of income 79 % 91 % 75 %
Interest as a % of income 6 % 9 % 4 %
LIQUIDITY (accrual)
Total accrual farm income 307,891 164,774 635,141
Total accrual operating expense 222,140 157,297 404,188
Net accrual operating income 85,752 7,476 230,953
Net nonfarm income 21,011 27,349 20,673
Family living and taxes 40,524 30,335 60,928
Real estate principal payments 8,955 7,934 12,304
Available for intermediate debt 57,284 -3,444 178,394
Average intermediate debt 117,749 107,280 151,317
Years to turnover interm. debt 2.1 ** 0.8
Expense as a % of income 72 % 95 % 64 %
Interest as a % of income 6 % 10 % 4 %
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