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Rate of Return on Farm Assets

5/7/2019

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Rate of return on farm assets is a financial ratio which measures the profit earned based on the farm's assets.  

To calculate:  Rate of Return on Farm Assets = Net Income / Total Assets

The higher the ratio, the better.  The greater the number, more profit per dollar of farm assets.

This will help you evaluate if the farm is using the assets efficiently. 

It is important to watch the numbers.  Be Smart!
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Working Capital

5/2/2019

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Working Capital my hold the key to your farm's success.  It is the money available to meet your current expenses.

How to calculate working capital:
Total current farm assets - Total current farm liabilities = Working Capital

The higher the number, the better able the farm will be to cover their short-term obligations.


Cash keeps the wheels turning.
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