Tag
#Financial Ratios
Farm Liquidity: Current Ratio and Working Capital
Current Ratio and Working Capital to Gross Revenues — the two liquidity numbers your lender watches most closely, with a worked example and the seasonal swings that move them.
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
Can this farm make its payments and still feed the folks at home? DSCR is how lenders find out.
What Your Lender Reads on a Farm Balance Sheet
A loan officer spends about four minutes on your balance sheet. Here's exactly what they're looking at in those four minutes.
Prepaid Inputs and Grain Inventory, Done Right
Two entries cause more ratio damage than anything else on a farm balance sheet: fall prepays and grain in the bin. Here's the fix.