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Operational Ratios for Evaluating the Farm Business

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  • Zwilling, Bradley

Abstract

As we begin to analyze the decisions that have already been made for 2024, we can use how the farm business performed in 2023 to help project 2024 outcomes. Various financial statements should have been completed for 2023, including an accrual income statement and balance sheet, to measure the profitability and net worth change of the business. From these two financial statements, a number of financial measures can be calculated to analyze the farming operation.

Suggested Citation

  • Zwilling, Bradley, 2025. "Operational Ratios for Evaluating the Farm Business," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 14(94).
    • Handle: RePEc:ags:illufd:358512
    DOI: 10.22004/ag.econ.358512
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    Keywords

    Agribusiness; Financial Management;

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