Farm business financial ratios, ,
1996-2000 |
Economic Class=Less than
$100,000 |
|
1996 |
1997 |
1998 |
1999 |
2000 |
ITEM |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Number of farms |
559,856 |
7.8 |
419,438 |
4.4 |
450,198 |
4.5 |
503,976 |
3.4 |
482,289 |
2.4 |
Current ratio (:1) |
4.04 |
23.2 |
3.58 |
9.1 |
4.44 |
8.2 |
4.39 |
10.1 |
4.34 |
17.2 |
Working caital-to-expense ratio (%) |
117.79 |
23.0 |
85.46 |
10.1 |
111.60 |
8.0 |
94.94 |
12.7 |
107.64 |
17.4 |
Debt/asset ratio (%) |
8.10 |
8.4 |
10.16 |
7.4 |
6.60 |
8.1 |
5.97 |
8.3 |
7.09 |
16.6 |
Rate of return on assets (%) |
-2.59 |
17.2 |
-2.82 |
8.9 |
-2.63 |
7.6 |
-2.51 |
7.9 |
-2.26 |
21.0 |
Rate of return on equity (%) |
-3.57 |
14.5 |
-4.07 |
8.6 |
-3.41 |
7.1 |
-3.22 |
6.8 |
-3.01 |
20.4 |
Operating profit margin (%) |
-27.99 |
18.8 |
-25.40 |
8.6 |
-36.91 |
9.9 |
-32.00 |
8.5 |
-27.23 |
16.0 |
Term debt coverage ratio (times) |
2.37 |
18.1 |
2.47 |
10.5 |
1.61 |
11.0 |
2.75 |
7.0 |
2.59 |
16.1 |
Asset turnover ratio (times) |
0.09 |
5.5 |
0.11 |
4.1 |
0.07 |
6.8 |
0.08 |
3.2 |
0.08 |
7.2 |
Operating expense ratio (%) |
96.09 |
4.3 |
92.75 |
3.2 |
97.29 |
2.7 |
93.58 |
2.2 |
92.19 |
3.5 |
Economic cost-to-output ratio (%) |
158.14 |
5.4 |
141.88 |
8.0 |
163.14 |
3.5 |
177.20 |
2.0 |
176.22 |
3.4 |
The
Relative Standard Error (RSE) is defined as the standard error of the
estimate divided by the estimate. The larger the RSE, the less reliable
the estimate. Source: Agricultural Resource Management Study,
USDA. |