TABLE 4
PROFITABILITY AND LIQUIDITY MEASURES, 2004
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 434 86 87
PROFITABILITY (assets valued at cost)
Net farm income 57,988 -12,059 163,031
Labor and management earnings 34,074 -22,388 109,962
Rate of return on assets 6.2 % -3.6 % 10.5 %
Rate of return on equity 7.2 % -20.9 % 13.5 %
Operating profit margin 15.4 % -9.6 % 25.0 %
Asset turnover rate 40.0 % 37.3 % 42.1 %
Interest on farm net worth 23,914 10,330 53,069
Farm interest expense 17,810 16,905 25,340
Value of operator lbr and mgmt. 29,499 22,007 43,701
Return on farm assets 46,298 -17,161 144,670
Average farm assets 749,675 480,609 1,375,829
Return on farm equity 28,489 -34,066 119,330
Average farm equity 396,218 162,991 884,480
Value of farm production 299,804 179,397 579,086
Avg. Of
All Farms Low 20% High 20%
Number of farms 434 86 87
LIQUIDITY (cash)
Net cash farm income 73,289 22,896 166,035
Net nonfarm income 20,419 29,359 15,070
Family living and taxes 45,019 38,401 62,865
Principal due on long term debt 8,735 7,377 14,399
Cash available for interm. debt 39,954 6,476 103,841
Average intermediate debt 126,099 120,742 170,262
Years to turnover interm. debt 3.2 18.6 1.6
Expense as a % of income 77 % 89 % 71 %
Interest as a % of income 5 % 7 % 4 %
LIQUIDITY (accrual)
Total accrual farm income 322,430 199,825 607,838
Total accrual operating expense 242,123 193,184 406,372
Net accrual operating income 80,307 6,641 201,466
Net nonfarm income 20,419 29,359 15,070
Family living and taxes 45,019 38,401 62,865
Principal due on long term debt 8,735 7,377 14,399
Available for intermediate debt 46,973 -9,779 139,272
Average intermediate debt 126,099 120,742 170,262
Years to turnover interm. debt 2.7 ** 1.2
Expense as a % of income 75 % 97 % 67 %
Interest as a % of income 6 % 8 % 4 %
** Income insufficient to meet debt servicing requirements
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