Farm business financial ratios, located in the Southern Seaboard region, 1996-2000

Production Speciality=Dairy

  1996 1997 1998 1999 2000
ITEM Estimate RSE Estimate RSE Estimate RSE Estimate RSE Estimate RSE
Number of farms 4,005 51.8 2,453 26.0 4,528 16.0 1,643 15.7 1,675 13.2
Current ratio (:1) 2.97 35.9 2.71 13.3 3.25 24.5 2.58 26.8 3.18 27.3
Working caital-to-expense ratio (%) 24.56 34.0 20.39 13.6 24.85 31.5 16.06 39.0 32.97 38.8
Debt/asset ratio (%) 15.38 40.0 12.49 13.4 14.84 15.6 14.19 18.7 15.27 9.3
Rate of return on assets (%) 2.82 * 0.64 * 0.80 * 2.43 47.4 4.68 25.9
Rate of return on equity (%) 2.11 * -0.52 * -0.65 * 1.27 * 4.03 37.6
Operating profit margin (%) 7.26 * 1.95 * 2.47 * 7.09 43.8 13.34 28.2
Term debt coverage ratio (times) 4.32 28.7 3.92 28.5 3.02 21.4 4.12 17.8 4.90 16.5
Asset turnover ratio (times) 0.39 34.0 0.33 9.9 0.32 17.2 0.34 10.1 0.35 13.3
Operating expense ratio (%) 79.79 4.6 81.84 6.5 81.56 6.0 77.47 2.4 71.82 5.1
Economic cost-to-output ratio (%) 90.74 7.8 81.67 14.6 84.99 20.9 100.34 4.3 98.35 4.0
* The Relative Standard Error (RSE) exceeds 75 percent.


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.

page updated: January 15, 2002
contact: Mitch Morehart.