Farm financial analysis quick ratio calculator

Sheet1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Farm Financial Analysis - Quick Ratio CalculatorPrinted:8/18/14*** Enter changes to BLUE values only ***Analysis and RatiosYour FarmNet Farm Income$ 554,953Farm Expenses$ 1,452,978Term Debt Principal Payments$ 129,380Interest on Term Debt$ 102,084Living Expenses / Personal Drawings$ 73,259Current Assets$ 2,591,404Total Assets$ 4,853,090Current Liabilities$ 965,588Total Liabilities$ 3,136,921Net Worth$ 1,716,169Liquidity RatiosCalculationYour FarmStrongSatisfactoryWeakCurrent RatioCurrent Assets / Current Liabilities2.68> 1.51.0 - 1.5< 1.0(Ability to meet current obligations as they come due in the next 12 months)Debt Structure RatioCurrent Liabilities / Total Liabilities30.8%< 20%20 - 35%> 35%(Amount of debt that is due in the next 12 months)Working CapitalCurrent Assets - Current Liabilities$ 1,625,816(If current assets are liquidated to pay current debts, what current assets are left)Solvency RatiosCalculationLeverage RatioTotal Liabilities / Net Worth1.83< 0.40.4 - 1.0>1.0(The number of dollars of debt for every $1 in equity)Debt RatioTotal Liabilities / Total Assets0.65< 0.250.25 - 0.4> 0.4(Proportion of debt as compared to farm assets owned)Equity RatioNet Worth / Total Assets0.35> 0.750.6 - 0.75< 0.6(Proportion of farm assets that are owned (owner financed))Profitability RatiosCalculationPercent Return on Assets[(Net Farm Income + Interest on Term Debt - Living Expenses) / Average Total Assets] x 10012.0%> 4%0 - 2%< 0%(Revenue generated as a % of assets (compare to return if money were invested off farm))Debt Service MarginTotal available for Projected Term Debt Payments / Total Projected Term Debt Payments2.52> 2.01.25 - 2.0< 1.25(Does the farm have enough available cash to pay debt requirements)Note: The values inputed, either cash or accrual, into the calculator will affect ratio output. Please ensure that you are using consistent input data year over year for relevant comparison purposes. Interpretation and use of this information is the responsibility of the user. If you need help with a budget, contract your local Manitoba Agriculture, Food and Rural Development (MAFRD) GO Office.Created and maintained by:August, 2014Sharon ArdronBob GwyerBusiness Development SpecialistBusiness Development SpecialistGreg FedakEllen McPhersonBusiness Development SpecialistBusiness Development SpecialistFor more information, contact your local

&R&"Arial,Regular"&10Manitoba Agriculture, Food and Rural DevelopmentMAFRD GO OfficeMAFRD Farm Business Management Specialist orSharon ArdronEllen McPhersonGreg FedakBob Gwyer

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