Measuring Financial Condition & Performance for Ag Business

Measuring Financial Condition & Performance for Ag Business
Measuring Financial Condition & Performance for Ag Businesses

An accurate measure of firm profitability and a complete evaluation of loan repayment ca­pacity is essential in today's agricultural lending environment. It is common to see the difference between cash net farm income and accrual-adjusted net farm income to be more than 60%. A spreadsheet is discussed that can be used to not only convert cash net farm in­come to accrual-adjusted net farm income, but that can also be used to calculate key financial ratios needed to evaluate profitability and repayment capacity. With input costs high and volatile, interest rates increasing, and commodity prices so sensitive to world events, sensitivity analysis is essential to have a comprehensive assessment of repayment ca­pacity. The spreadsheet is also used to evaluate the sensitivity of changes in revenue, operating expenses, and interest rates on the coverage ratio.

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Once online registration closes, please contact CBAI at 800/736-2224 to register.
When
11/14/2024
Where
CBAI Headquarters 901 Community Drive Springfield 62703

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