; Financial Performance of Your Farm Business | Conferences | AgRisk Library


Conference Name Financial Performance of Your Farm Business

Charles Brown


Two key components of analyzing your farm business are the asset turnover ratio and the efficiency of converting gross revenues into profits. Knowing these two factors helps determine which assets to buy, how much debt they will support and how many dollars need to be invested to support interest, living expenses, debt retirement and business growth. These factors can also help determine how much gross revenue needs to be added to bring a partner into the operation or how much outside income needs to be generated to support living costs. Knowing your financial efficiency can go a long ways to assure you have a successful farm business.