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Dairy Business Analysis Project: 2001 Financial Summary 1
A. de Vries, R. Giesy, L. Ely, A. de Araujo, A. Andreasen, B. Broaddus, S. Eubanks, D. Mayo, P. Miller, T. Seawright, C. Vann2Introduction
The Dairy Business Analysis Project (DBAP) was initiated in 1996 by the University of Florida in an effort to measure and document the financial performance of Florida dairy businesses using standardized accounting measures. The University of Georgia has been a formal collaborator since 1998. A committee of dairy farmers appointed by Southeast Milk, Inc. oversees the project and helps direct its course. The DBAP website is http://www.animal.ufl.edu/dbap .Financial data for the year 2001 were collected from participating dairies and screened for completeness and validity. Each dairy then received a report detailing its financial results compared to the average results for the other participants and the six dairies with the highest net farm income from operations per cwt.
This publication is a summary of the financial performance in the year 2001. It is intended for general use by dairy farmers, the allied industry, and government, and educational professionals.
Data Collection and Accounting Methods
Dairy businesses in Florida, Georgia, and Alabama were asked to participate in DBAP. Participants were therefore not a random sample of all dairies in the three states.Most of the data were collected by extension agents when visiting farms using a standardized data collection spreadsheet. Occasionally, data were sent in by the dairy farms. The financial data were either entered into the spreadsheet on the farm or mailed in on paper copies of the spreadsheet.
The accounting methods follow the recommendations made by the Farm Financial Standards Council3. All revenues and expenses were accrual adjusted. Cash receipts and expenses were therefore adjusted for changes in inventory, prepaid expenses, depreciation, accounts payable, and receivable. Depreciation data were taken from tax records. Asset valuation was based on market values, but the changes from January 1 to December 31 were kept small. Unpaid management was valued at $50,000 per farm. Gain on purchased livestock sales resulted when livestock depreciation did not completely account for the gain or loss in the value of the purchased livestock during 2001. Appreciation resulted when machinery and building depreciation did not completely account for the gain or loss in the value of these capital assets during 2001.
The bottom line of each dairy business is its net farm income. Net farm income is the return to the owner and unpaid family members for their labor, management, and equity in the business. It is the total income available for the owner's and family members' salary, new investments, taxes, and paying off principal.
All submitted data were carefully scrutinized and checked for completeness. The cash flow statement reconciles the net cash flow resulting from the reported operating, investing, and financing activities with the reported available cash on the January 1 and December 31 balance sheets. The equity statement reconciles the changes in equity through reported retained capital and valuation with the calculated equity on the balance sheets. The reconciliation attempts typically result in unresolved imbalances. Both cash flow imbalance and equity imbalance had to be less than 10% for the business to be included in the summary results reported here.
Results
Forty-one dairies submitted financial data. Thirty-nine dairies were included in the summary results. Of these, 27 were located in Florida, 11 in Georgia, and one in Alabama. The average herd size of the participating dairies was 977 cows and 477 heifers with 17,170 lbs. milk sold per cow. The average culling rate was 36%. The milk price received by DBAP participants averaged $18.24, 9% more than in 2000. Average total revenues were $20.00 per cwt. sold, an increase of $1.84 per cwt compared to 2000.Total expenses averaged $17.75 per cwt., an increase of $0.67 compared to 2000. The largest items were purchased feed ($7.32) and personnel costs ($2.69). Net farm income from operations averaged $2.25 per cwt, an increase of $1.18 compared to 2000. Net farm income per cwt. was $2.39.
Summary results are presented in Figures 1 through 5 and Tables 1.1 through 4.4. Some definitions and calculation rules are as follows:
- Asset turnover ratio = total revenues / average assets
- Assets = value of assets on the balance sheet
- Average assets = average of value of assets on January 1 and December 31
- Average equity = average of value of equity on January 1 and December 31
- Capital replacement and term debt repayment margin = Net Farm Income From Operations (NFIFO) + depreciation + interest on term debt - net social security and income taxes - owner withdrawals - annual scheduled payments on term debt and capital leases
- Cash flow coverage ratio = (cash revenues - cash expenses) / current liabilities
- Current assets = short-term assets that can be utilized within one year
- Current liabilities = liabilities due within one year
- Current ratio = current assets / current liabilities
- Debt to asset ratio = liabilities / assets
- Debt to equity ratio = liabilities / equity
- Depreciation expense ratio = depreciation / total revenue
- Equity = assets - liabilities
- Equity to asset ratio = equity / assets
- FTE = full time equivalent worker, on average 54 hours per week
- Interest expense ratio = interest paid / total revenue
- Liabilities = value of liabilities on the balance sheet
- Net farm income = NFIFO + appreciation
- NFIFO = net farm income from operations
- NFIFO ratio = NFIFO / total revenue
- Operating expense ratio = (total operating expenses - depreciation) / total revenue
- Operating profit margin ratio = (NFIFO + interest paid - unpaid management) / total revenues
- Rate of return on dairy assets = (NFIFO + interest paid - unpaid management) / average assets
- Rate of return on equity = (NFIFO - unpaid management) / average equity
- Term debt and capital lease coverage ratio = (NFIFO + non dairy income + depreciation + interest paid on term debt - net social security and income taxes - owner withdrawals) / (annual scheduled payments on term debt and capital leases).
- Working capital = current assets / current liabilities
Figure 1. DBAP 2001 Summary - Milk per cow (lbs/year) by heifers per cow.
Figure 2. DBAP 2001 Summary - Net farm income per cwt ($) by heifers per cow.
Figure 3. DBAP 2001 Summary - Net farm income per cwt ($) by total expenses per cwt ($).
Figure 4. DBAP 2001 Summary - Net farm income per cwt ($) by milk per cow (lbs/year).
Figure 5. DBAP 2001 Summary - Net farm income per cwt ($) by average number of cows.
Table 1.1. DBAP 2001 Summary - Business size and production efficiency by state and overall average, median, and standard deviation.
Overall
State Averages
Category Average
Median
Std1
Florida
Georgia
Number of farms
39
39
39
27
11
Business size Average number of cows
977
667
980
1,078
794
Average number of heifers
477
195
693
556
308
Milk sold (million lbs) 17.55
11.20
19.45
18.98
15.29
FTE workers
19
12
19
21
13
Acres of pasture + cultivated land
437
260
474
469
355
Production efficiency Milk sold / cow (lbs) 17,170
16,989
2,837
16,355
19,342
Cows / FTE worker
51.53
47.94
18.84
52.19
51.76
Milk sold / FTE worker (million lbs)
0.88
0.87
0.35
0.85
1.00
Cull rate 0.36
0.36
0.13
0.34
0.40
1Standard deviation.
Tables
Table 1.2. DBAP 2001 Summary - Revenues and expenses by state and overall average, median, and standard deviation.
Overall
State Averages
Category Average
Median
Std1
Florida
Georgia
Number of farms
39
39
39
27
11
Revenues (per cwt)
Milk sold ($) 18.24
18.43
1.22
18.33
17.92
Raised, leased cow sales ($)
0.56
0.49
0.78
0.51
0.66
Heifer sales ($)
0.29
0.18
0.53
0.38
0.10
Gain on purchased livestock sales ($)
(0.08)
0.00
0.99
(0.28)
0.43
Other revenues ($)
0.99
0.32
1.05
0.83
1.05
Total revenues ($)
20.00
19.42
2.26
19.77
20.16
Expenses (per cwt)
Personnel ($)
2.69
2.87
1.04
2.87
2.22
Purchased feed ($)
7.32
7.43
1.61
7.51
6.96
Crops ($)
0.48
0.11
0.89
0.25
0.74
Machinery ($)
1.01
0.93
0.52
0.99
0.93
Livestock ($)
1.64
1.50
0.88
1.66
1.63
Milk marketing ($)
1.05
0.99
0.37
1.02
1.16
Buildings and land ($)
0.64
0.55
0.49
0.54
0.76
Interest ($)
0.61
0.52
0.53
0.75
0.30
Depreciation:
- Livestock ($)
0.67
0.42
0.69
0.69
0.70
- Machinery ($)
0.50
0.46
0.42
0.41
0.62
- Buildings ($)
0.24
0.14
0.33
0.23
0.26
Other expenses ($)
0.90
1.73
0.47
0.99
0.72
Total expenses ($)
17.75
17.65
2.01
17.91
17.00
Net farm income from operations ($)
2.25
2.00
1.85
1.86
3.17
Appreciation ($) 0.15
0.00
0.43
0.13
0.19
Net farm income ($) 2.39
2.19
1.92
1.99
3.36
Table 1.3. DBAP 2001 Summary - Financial performance by state and overall average, median, and standard deviation.
Overall
State Averages
Category
Average
Median
Std1
Florida
Georgia
Number of farms
39
39
39
27
11
Liquidity
Current ratio 2.34
1.05
3.43
1.26
3.46
Working capital ($) 185,321
29,662
536,348
158,153
247,237
Solvency
Debt to asset ratio
0.32
0.34
0.21
0.35
0.25
Equity to asset ratio
0.68
0.66
0.21
0.65
0.75
Debt to equity ratio
0.72
0.52
1.18
0.86
0.45
Profitability
Rate of return on assets
0.09
0.07
0.09
0.07
0.14
Rate of return on equity
0.11
0.08
0.19
0.07
0.21
Operating profit margin ratio
0.09
0.08
0.10
0.08
0.13
Financial efficiency
Asset turnover rate
0.90
0.80
0.42
0.83
1.10
Operating expense ratio
0.79
0.82
0.10
0.80
0.75
Depreciation expense ratio
0.07
0.06
0.04
0.07
0.08
Interest expense ratio
0.03
0.02
0.03
0.04
0.01
Net farm income ratio
0.11
0.10
0.09
0.09
0.15
Repayment capacity
Cash flow coverage ratio
3.08
1.01
6.73
2.45
3.41
Term debt coverage ratio1
10.66
2.40
33.57
10.82
3.75
Capital replacement margin2 ($)
386,201
158,744
635,232
395,310
394,745
1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.
Table 1.4. DBAP 2001 Summary - Balance sheet by state and overall average, median, and standard deviation.
Overall
State Averages
Category Average
Median
Std1
Florida
Georgia
Number of farms
39
39
39
27
11
Balance sheet (January 1)
Current assets/cow ($) 451
399
376
347
680
Total assets/cow ($) 4,535
4,068
2,267
4,443
4,484
Current liabilities/cow ($) 376
311
339
390
367
Total liabilities/cow ($)
1,305
1,143
833
1,466
1,008
Equity/cow ($) 3,281
2,364
2,336
3,016
3,561
Balance sheet (December 31) Current assets/cow ($) 541
441
421
395
852
Total assets/cow ($) 4,725
4,138
2,298
4,573
4,821
Current liabilities/cow ($) 394
322
285
446
295
Total liabilities/cow ($) 1,301
1,187
869
1,478
973
Equity/cow ($) 3,478
2,755
2,385
3,138
3,931
Table 2.1. DBAP 2001 Summary - Business size and production efficiency by average number of cows and milk per cow.
Average number of cows
Milk per cow (lbs/year)
Category < 400
400-900
> 900
< 16,000
16,000-18,000
> 18,000
Number of farms
13
13
13
13
13
13
Business size Average number of cows
201
621
2,108
625
920
1,385
Average number of heifers
118
309
1,002
271
451
708
Milk sold (million lbs)
3.26
11.04
38.35
9.17
15.47
28.01
FTE workers
5
13
37
12
16
27
Acres of pasture+cultivated land 180
304
827
372
507
433
Production efficiency Milk sold/cow (lbs) 16,144
17,840
17,525
14,358
16,897
20,254
Cows/FTE worker 41.29
50.81
62.48
46.13
54.67
53.79
Milk sold/FTE worker (million lbs) 0.66
0.90
1.09
0.65
0.92
1.07
Cull rate 0.41
0.32
0.34
0.34
0.41
0.33
Table 2.2. DBAP 2001 Summary - Revenues and expenses by average number of cows and milk per cow.
Average number of cows
Milk per cow (lbs/year)
Category
< 400
400-900
> 900
< 16,000
16,000-18,000
> 18,000
Number of farms 13
13
13
13
13
13
Revenues (per cwt)
Milk sold ($)
17.71
18.15
18.87
18.18
18.19
18.35
Raised, leased cow sales ($)
0.50
0.83
0.36
0.38
0.78
0.53
Heifer sales ($)
0.24
0.22
0.41
0.48
0.18
0.21
Gain on purchased livestock sales ($)
0.23
(0.28)
(0.17)
(0.09)
(0.10)
(0.04)
Other revenues ($)
1.66
0.74
0.54
1.59
0.64
0.71
Total revenues ($)
20.34
19.66
20.01
20.54
19.69
19.76
Expenses (per cwt)
Personnel ($)
2.39
2.87
2.82
2.63
2.81
2.64
Purchased feed ($)
7.31
7.47
7.19
7.58
7.22
7.17
Crops ($)
0.90
0.32
0.21
0.86
0.25
0.32
Machinery ($)
1.27
0.80
0.94
1.22
0.97
0.83
Livestock ($)
1.48
1.69
1.75
1.53
1.80
1.59
Milk marketing ($)
1.06
1.07
1.01
0.92
1.15
1.07
Buildings and land ($)
0.59
0.71
0.60
0.62
0.72
0.56
Interest ($)
0.81
0.56
0.45
0.81
0.54
0.47
Depreciation:
- Livestock ($)
0.66
0.54
0.82
0.68
0.73
0.61
- Machinery ($)
0.64
0.45
0.41
0.58
0.39
0.54
- Buildings ($)
0.33
0.19
0.19
0.29
0.13
0.30
Other expenses ($)
1.03
0.87
0.86
1.08
0.79
0.86
Total expenses ($)
18.47
17.54
17.25
18.80
17.50
16.96
Net farm income from operations ($)
1.86
2.11
2.76
1.74
2.20
2.80
Appreciation ($) 0.02
0.19
0.23
0.25
0.05
0.14
Net farm income ($) 1.88
2.31
2.99
1.98
2.25
2.94
Table 2.3. DBAP 2001 Summary - Financial performance by average number of cows and milk per cow.
Average number of cows
Milk per cow (lbs/year)
Category
< 400
400-900
> 900
< 16,000
16,000-18,000
> 18,000
Number of farms
13
13
13
13
13
13
Liquidity
Current ratio
2.70
2.19
1.59
2.33
1.65
2.50
Working capital ($) 31,707
55,775
468,480
(99,858)
204,959
450,862
Solvency
Debt to asset ratio
0.32
0.34
0.29
0.32
0.28
0.34
Equity to asset ratio
0.68
0.66
0.71
0.68
0.72
0.66
Debt to equity ratio
0.67
1.00
0.49
0.63
0.90
0.64
Profitability
Rate of return on assets
0.03
0.10
0.15
0.04
0.09
0.14
Rate of return on equity
0.00
0.10
0.22
0.01
0.11
0.20
Operating profit margin ratio
0.02
0.11
0.15
0.05
0.09
0.14
Financial efficiency
Asset turnover rate
0.67
0.95
1.06
0.68
0.97
1.05
Operating expense ratio
0.79
0.81
0.77
0.80
0.80
0.77
Depreciation expense ratio
0.08
0.06
0.07
0.07
0.06
0.07
Interest expense ratio
0.04
0.03
0.02
0.04
0.03
0.02
Net farm income ratio
0.09
0.10
0.13
0.08
0.11
0.14
Repayment capacity
Cash flow coverage ratio
1.72
5.36
1.46
1.77
1.50
5.27
Term debt coverage ratio1
2.46
5.19
18.60
16.97
1.96
7.31
Capital replacement margin2 ($)
20,007
216,808
921,788
172,893
449,668
536,042
1Term debt and capital lease coverage ratio. 2 Capital replacement and term debt repayment margin.
Table 2.4. DBAP 2001 Summary - Balance sheet by average number of cows and milk per cow.
Average number of cows
Milk per cow (lbs/year)
Category < 400
400-900
> 900
< 16,000
16,000-18,000
> 18,000
Number of farms
13
13
13
13
13
13
Balance sheet (January 1)
Current assets/cow ($) 456
401
497
291
382
681
Total assets/cow ($) 5,904
4,152
3,548
5,113
4,178
4,313
Current liabilities/cow ($) 406
280
443
338
247
545
Total liabilities/cow ($) 1,552
1,170
1,193
1,400
1,130
1,384
Equity/cow ($) 4,437
3,031
2,375
3,731
3,111
3,002
Balance sheet (December 31) Current assets/cow ($) 539
445
637
368
460
794
Total assets/cow ($) 6,198
4,264
3,715
5,169
4,527
4,480
Current liabilities/cow ($) 378
330
475
403
308
472
Total liabilities/cow ($) 1,570
1,216
1,117
1,347
1,220
1,336
Equity/cow ($) 4,721
3,092
2,619
3,849
3,369
3,215
Table 3.1. DBAP 2001 Summary - Business size and production efficiency by net farm income per cwt and rate of return on assets.
Net farm income/cwt ($)
Rate of return on assets (%)
Category < $1.20
$1.20-$2.80
> $2.80
< 0.045
0.045-0.11
> 0.11
Number of farms
13
13
13
13
13
13
Business size Average number of cows
622
1,105
1,203
406
901
1,622
Average number of heifers
222
525
683
213
408
809
Milk sold (million lbs)
10.24
20.54
21.87
6.77
14.59
31.29
FTE workers
12
24
19
9
17
29
Acres of pasture + cultivated land
344
476
492
335
347
630
Production efficiency Milk sold / cow (lbs)
16,212
17,035
18,263
16,201
16,502
18,807
Cows / FTE worker
51.02
47.84
55.73
42.28
52.11
60.20
Milk sold / FTE worker (million lbs)
0.82
0.83
1.00
0.68
0.86
1.11
Cull rate 0.39
0.35
0.33
0.39
0.34
0.35
Table 3.2. DBAP 2001 Summary - Revenues and expenses by net farm income per cwt and rate of return on assets.
Net farm income/cwt ($)
Rate of return on assets (%)
Category < $1.20
$1.20-$2.80
> $2.80
< 0.045
0.045-0.11
> 0.11
Number of farms
13
13
13
13
13
13
Revenues (per cwt)
Milk sold ($)
17.98
18.90
17.85
17.93
18.55
18.24
Raised, leased cow sales ($)
0.15
0.87
0.67
0.32
0.56
0.81
Heifer sales ($)
0.13
0.34
0.40
0.14
0.26
0.47
Gain on purchased livestock sales ($)
(0.77)
0.08
0.46
(0.45)
(0.15)
0.38
Other revenues ($)
0.59
1.17
1.18
1.55
0.55
0.83
Total revenues ($)
18.08
21.36
20.56
19.49
19.77
20.73
Expenses (per cwt)
Personnel ($)
2.98
2.95
2.15
2.97
2.65
2.46
Purchased feed ($)
7.57
7.91
6.49
6.96
8.05
6.96
Crops ($)
0.13
0.76
0.53
0.90
0.21
0.32
Machinery ($)
0.87
1.05
1.10
1.23
0.88
0.91
Livestock ($)
1.58
1.95
1.38
1.39
1.83
1.70
Milk marketing ($)
1.05
1.01
1.08
1.00
1.01
1.13
Buildings and land ($)
0.42
0.95
0.54
0.53
0.69
0.68
Interest ($)
0.77
0.49
0.57
0.86
0.47
0.50
Depreciation:
- Livestock ($)
0.62
0.57
0.83
0.45
0.77
0.80
- Machinery ($)
0.40
0.59
0.51
0.67
0.37
0.46
- Buildings ($)
0.18
0.16
0.37
0.36
0.12
0.23
Other expenses ($)
1.12
0.92
0.70
0.96
1.05
0.73
Total expenses ($) 17.69
19.31
16.25
18.28
18.10
16.88
Net farm income from operations ($)
0.39
2.04
4.30
1.21
1.67
3.85
Appreciation ($) (0.02)
0.10
0.36
0.01
0.35
0.08
Net farm income ($) 0.37
2.14
4.67
1.22
2.02
3.94
Table 3.3. DBAP 2001 Summary - Financial performance by net farm income per cwt and rate of return on assets.
Net farm income/cwt ($)
Rate of return on assets (%)
Category
< $1.20
$1.20-$2.80
> $2.80
< 0.045
0.045-0.11
> 0.11
Number of farms
13
13
13
13
13
13
Liquidity
Current ratio
1.13
3.14
2.21
2.59
1.37
2.52
Working capital ($) 35,014
240,011
280,937
88,491
(84,223)
551,694
Solvency
Debt to asset ratio
0.33
0.33
0.29
0.27
0.35
0.32
Equity to asset ratio
0.67
0.67
0.71
0.73
0.65
0.68
Debt to equity ratio
1.05
0.62
0.49
0.55
1.05
0.56
Profitability
Rate of return on assets
0.02
0.10
0.16
0.01
0.08
0.19
Rate of return on equity
(0.02)
0.12
0.22
(0.04)
0.08
0.28
Operating profit margin ratio
0.00
0.09
0.18
0.00
0.08
0.19
Financial efficiency
Asset turnover rate
0.82
1.04
0.82
0.54
1.12
1.02
Operating expense ratio
0.87
0.82
0.68
0.83
0.83
0.72
Depreciation expense ratio
0.06
0.06
0.08
0.07
0.06
0.07
Interest expense ratio
0.04
0.02
0.03
0.05
0.02
0.02
Net farm income ratio
0.02
0.09
0.21
0.06
0.08
0.19
Repayment capacity
Cash flow coverage ratio
3.76
1.76
3.02
2.13
3.54
2.87
Term debt coverage ratio1
2.75
5.40
18.10
2.00
17.70
6.55
Capital replacement margin2 ($)
76,801
271,157
810,645
31,756
264,861
861,985
1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.
Table 3.4. DBAP 2001 Summary - Balance sheet by net farm income per cwt and rate of return on assets.
Net farm income/cwt ($)
Rate of return on assets (%)
Category < $1.20
$1.20-$2.80
> $2.80
< 0.045
0.045-0.11
> 0.11
Number of farms
13
13
13
13
13
13
Balance sheet (January 1) Current assets/cow ($) 236
459
658
461
291
602
Total assets/cow ($) 4,863
3,938
4,803
6,380
3,180
4,044
Current liabilities/cow ($) 277
335
517
387
368
374
Total liabilities/cow ($) 1,388
1,145
1,381
1,497
1,165
1,253
Equity/cow ($) 3,534
2,849
3,460
4,981
2,066
2,796
Balance sheet (December 31) Current assets/cow ($) 244
627
751
488
373
761
Total assets/cow ($) 5,021
4,107
5,048
6,539
3,396
4,241
Current liabilities/cow ($) 357
407
419
364
379
440
Total liabilities/cow ($) 1,442
1,143
1,317
1,496
1,172
1,234
Equity/cow ($) 3,643
3,019
3,770
5,147
2,274
3,012
Table 4.1. DBAP 2001 Summary - Business size and production efficiency by assets per cow and liabilities per cow.
Assets per cow ($)
Liabilities per cow ($)
Category < $3,650
$3,650-$4,700
> $4,700
< $925
$925-$1,600
> $1,600
Number of farms
13
13
13
13
13
13
Business size Average number of cows
1,138
1,220
571
1,249
629
1,052
Average number of heifers
471
548
412
579
231
620
Milk sold (million lbs)
21.25
20.17
11.22
22.13
11.45
19.07
FTE workers
21
22
12
24
12
19
Acres of pasture + cultivated land 312
606
393
503
352
456
Production Efficiency Milk sold/cow (lbs) 17,632
16,426
17,451
17,348
17,463
16,699
Cows/FTE worker 59.78
54.15
40.66
57.79
46.77
50.02
Milk sold/FTE worker (million lbs) 1.06
0.89
0.71
0.99
0.83
0.83
Cull rate 0.35
0.36
0.36
0.35
0.36
0.37
Table 4.2. DBAP 2001 Summary - Revenues and expenses by assets per cow and liabilities per cow.
Assets per cow ($)
Liabilities per cow ($)
Category
< $3,650
$3,650-
$4,700
> $4,700
< $925
$925-
$1,600
> $1,600
Number of farms
13
13
13
13
13
13
Revenues (per cwt)
Milk sold ($)
18.63
18.25
17.85
18.41
18.24
18.07
Raised, leased cow sales ($)
0.53
0.71
0.45
0.48
0.69
0.53
Heifer sales ($)
0.37
0.36
0.14
0.24
0.40
0.23
Gain on purchased livestock sales ($)
(0.03)
(0.18)
(0.01)
(0.13)
0.05
(0.14)
Other revenues ($)
0.59
0.71
1.63
1.09
0.60
1.24
Total revenues ($)
20.09
19.85
20.06
20.09
19.98
19.93
Expenses (per cwt)
Personnel ($)
2.56
2.75
2.76
2.81
2.55
2.71
Purchased feed ($)
8.09
7.53
6.36
7.06
7.85
7.06
Crops ($)
0.12
0.29
1.02
0.82
0.20
0.41
Machinery ($)
0.83
0.91
1.28
1.08
1.00
0.94
Livestock ($)
1.80
1.68
1.44
1.63
1.84
1.45
Milk marketing ($)
1.15
0.94
1.05
1.01
1.10
1.03
Buildings and land ($)
0.78
0.61
0.51
0.90
0.59
0.42
Interest ($)
0.47
0.60
0.76
0.22
0.50
1.10
Depreciation:
- Livestock ($)
1.03
0.60
0.39
0.61
0.77
0.65
- Machinery ($)
0.40
0.34
0.76
0.65
0.44
0.41
- Buildings ($)
0.14
0.20
0.37
0.24
0.20
0.27
Other expenses ($) 0.86
0.89
0.99
0.65
0.98
1.11
Total expenses ($)
18.23
17.34
17.69
17.68
18.02
17.56
Net farm income from operations ($)
1.86
2.51
2.37
2.41
1.96
2.37
Appreciation ($) 0.05
0.37
0.02
0.20
0.12
0.12
Net farm income ($) 1.91
2.88
2.39
2.61
2.08
2.49
Table 4.3. DBAP 2001 Summary - Financial performance by assets per cow and liabilities per cow.
Assets per cow ($)
Liabilities per cow ($)
Category
< $3,650
$3,650-$4,700
> $4,700
< $925
$925-$1,600
> $1,600
Number of farms
13
13
13
13
13
13
Liquidity
Current ratio
1.37
1.73
3.39
4.24
1.50
0.74
Working capital ($) 120,419
165,594
269,949
345,687
54,417
155,858
Solvency
Debt to asset ratio
0.43
0.30
0.22
0.13
0.32
0.49
Equity to asset ratio
0.57
0.70
0.78
0.87
0.68
0.51
Debt to equity ratio
1.28
0.50
0.39
0.18
0.55
1.44
Profitability
Rate of return on assets
0.12
0.10
0.05
0.09
0.08
0.10
Rate of return on equity
0.18
0.12
0.03
0.10
0.10
0.12
Operating profit margin ratio
0.09
0.13
0.06
0.11
0.08
0.09
Financial efficiency
Asset turnover rate
1.36
0.79
0.54
0.94
0.94
0.81
Operating expense ratio
0.81
0.79
0.77
0.79
0.81
0.77
Depreciation expense ratio
0.08
0.06
0.07
0.08
0.07
0.06
Interest expense ratio
0.02
0.03
0.04
0.01
0.03
0.06
Net farm income ratio
0.09
0.12
0.11
0.12
0.10
0.11
Repayment capacity
Cash flow coverage ratio
3.50
1.59
3.44
4.46
3.36
0.72
Term debt coverage ratio1
6.85
15.93
3.48
21.54
3.42
1.30
Capital replacement margin2 ($)
462,079
507,835
188,688
552,130
145,713
460,759
1Term debt and capital lease coverage ratio. 2Capital replacement and term debt repayment margin.
Table 4.4. DBAP 2001 Summary - Balance sheet by assets per cow and liabilities per cow.