PROFITABILITY AND LIQUIDITY ANALYSIS, 1999
North Dakota Farm Business Management Education Program
State Report
(Farms sorted by Net Farm Income)
Average Of Average Of Average Of
All Farms Low 20% High 20%
Number of Farms 467 93 93
PROFITABILITY (Cost)
Net farm income 51181 -7970 137107
Labor and management earnings 34726 -16548 104396
Rate of return on assets 8.8 % -2.1 % 14.6 %
Rate of return on equity 10.6 % -19.8 % 19.7 %
Operating profit margin 22.6 % -7.2 % 31.6 %
Asset turnover rate 39.0 % 29.8 % 46.1 %
Interest on farm net worth 16455 8578 32711
Farm interest expense 20275 18497 27251
Value of operator lbr and mgmt. 22498 19077 29847
Return on farm assets 48959 -8551 134510
Average farm assets 556083 398549 922664
Return on farm equity 28684 -27047 107260
Average farm equity 271162 136900 545185
Value of farm production 216822 118626 425517
Number of Farms 467 93 93
LIQUIDITY (Cash)
Net cash farm income 50212 7872 111405
Net nonfarm income 17665 19301 15690
Family living and taxes 35324 25129 49156
Real estate principal payments 6822 4344 9019
Cash available for interm. debt 25730 -2300 68919
Average intermediate debt 96079 95260 117592
Years to turnover interm. debt 3.7 ** 1.7
Expense as a % of income 77 % 94 % 72 %
Interest as a % of income 9 % 11 % 7 %
LIQUIDITY (Accrual)
Total accrual farm income 232098 133729 445951
Total accrual farm expense 166219 127084 284789
Net accrual operating income 65879 6645 161162
Net nonfarm income 17665 19301 15690
Family living and taxes 35324 25129 49156
Real estate principal payments 6822 4344 9019
Available for intermediate debt 41398 -3527 118677
Average intermediate debt 96079 95260 117592
Years to turnover interm. debt 2.3 ** 1.0
Expense as a % of income 72 % 95 % 64 %
Interest as a % of income 9 % 14 % 6 %
** Income insufficient to meet debt servicing requirements