Farm business financial ratios, ,
1996-2000 |
Economic Class=$1,000,000 or
more |
|
1996 |
1997 |
1998 |
1999 |
2000 |
ITEM |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Estimate |
RSE |
Number of farms |
22,400 |
13.8 |
18,680 |
11.1 |
24,862 |
4.8 |
26,183 |
5.8 |
21,260 |
7.3 |
Current ratio (:1) |
2.32 |
7.1 |
2.24 |
17.1 |
2.58 |
6.6 |
2.40 |
6.0 |
2.41 |
13.6 |
Working caital-to-expense ratio (%) |
25.67 |
11.4 |
20.66 |
22.2 |
29.82 |
7.4 |
25.72 |
9.0 |
25.23 |
8.7 |
Debt/asset ratio (%) |
20.63 |
9.4 |
20.65 |
8.6 |
18.60 |
11.8 |
20.10 |
8.2 |
20.08 |
8.4 |
Rate of return on assets (%) |
9.98 |
12.3 |
14.61 |
20.1 |
13.74 |
19.0 |
10.27 |
6.3 |
9.18 |
15.9 |
Rate of return on equity (%) |
10.01 |
15.5 |
15.72 |
23.4 |
14.46 |
23.3 |
10.31 |
8.2 |
9.05 |
20.3 |
Operating profit margin (%) |
16.84 |
10.2 |
22.12 |
15.7 |
23.99 |
8.0 |
18.45 |
7.3 |
17.69 |
8.2 |
Term debt coverage ratio (times) |
5.58 |
9.5 |
7.05 |
13.7 |
7.40 |
10.2 |
6.37 |
8.2 |
5.24 |
16.3 |
Asset turnover ratio (times) |
0.59 |
9.7 |
0.66 |
7.4 |
0.57 |
13.4 |
0.56 |
5.2 |
0.52 |
12.3 |
Operating expense ratio (%) |
78.06 |
1.6 |
75.31 |
4.5 |
70.48 |
2.4 |
75.21 |
1.8 |
77.64 |
2.0 |
Economic cost-to-output ratio (%) |
80.95 |
4.0 |
86.54 |
6.4 |
79.44 |
2.4 |
81.06 |
4.5 |
83.28 |
5.1 |
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. |