Tag
#Financial Ratios
Farm Liquidity Ratios: Current Ratio and Working Capital Explained
Current Ratio and Working Capital to Gross Revenues — the two liquidity numbers your lender watches most closely.
Farm Solvency: Understanding the Debt-to-Asset Ratio
How much of your outfit does the bank already own? The Debt-to-Asset Ratio is how lenders answer that question.
Farm Repayment Capacity: Debt Service Coverage Ratio Explained
Can this farm make its payments and still feed the folks at home? DSCR is how lenders find out.