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Financial Ratio Analysis using ARMS Data

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  • Ahrendsen, Bruce L.
  • Katchova, Ani L.

Abstract

The purpose of this research is to evaluate the financial performance measures calculated and reported by Economic Resource Service (ERS) from ARMS data. The evaluation includes the calculation method and the underlying assumptions used in obtaining the reported values. The financial measures calculated and reported are compared with those recommended by the Farm Financial Standards Council (FFSC). The underlying assumptions are identified by analyzing the software code used in calculating the values reported. The values obtained from the various calculation methods are compared and contrasted.

Suggested Citation

  • Ahrendsen, Bruce L. & Katchova, Ani L., 2012. "Financial Ratio Analysis using ARMS Data," Staff Papers 164517, University of Kentucky, Department of Agricultural Economics.
    • Handle: RePEc:ags:ukysps:164517
    DOI: 10.22004/ag.econ.164517
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    1. Jaclyn D. Kropp & Ani L. Katchova, 2011. "The effects of direct payments on liquidity and repayment capacity of beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(3), pages 347-365, November.
    2. Katchova, Ani L., 2010. "An Analysis of the Financial Performance of Beginning Farmers," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61513, Agricultural and Applied Economics Association.
    3. Adhikari, Arun & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46830, Southern Agricultural Economics Association.
    4. O. John Nwoha & Bruce L. Ahrendsen & Bruce L. Dixon & Daniel M. Settlage & Eddie C. Chavez, 2007. "FSA direct loan targeting: successful and financially necessary?," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 67(1), pages 35-53, May.
    5. Chavez, Eddie C. & Dixon, Bruce L. & Ahendsen, Bruce L. & Wailes, Eric J., 2009. "Comparative Financial Characteristics of U.S. Farms by Type, 2005," Staff Papers 55780, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    6. D'Antoni, Jeremy M. & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Predicting Financial Stress in Young and Beginning Farmers in the United States," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46861, Southern Agricultural Economics Association.
    7. Ashok Mishra & Christine Wilson & Robert Williams, 2009. "Factors affecting financial performance of new and beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 69(2), pages 160-179, July.
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    Cited by:

    1. Paul N. Ellinger & Bruce L. Ahrendsen & Charles B. Moss, 2012. "Balance sheet and income statement issues in ARMS," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(2), pages 247-253, July.
    2. Soliwoda, Michał, 2016. "How to Improve a Farm Financial Management? The Lesson from Poland," Rural Areas and Development, European Rural Development Network (ERDN), vol. 13, pages 1-12.
    3. Hisham S. El-Osta, 2018. "Strategies to Manage Risk and their Role in Impacting Economic Performance among Farm Households," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 49-64, March.
    4. Tleubayev, Alisher & Bobojonov, Ihtiyor & Gagalyuk, Taras & Glauben, Thomas, 2022. "Business group affiliation and financial performance in the agricultural sector of transition economies: The case of Russian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(2), pages 280-310.
    5. Todd, Jessica E. & Whitt, Christine & Key, Nigel & Mandalay, Okkar, 2024. "An Overview of Farms Operated by Socially Disadvantaged, Women, and Limited Resource Farmers and Ranchers in the United States," Economic Information Bulletin 340512, United States Department of Agriculture, Economic Research Service.
    6. Alexander Zorn & Michele Esteves & Ivo Baur & Markus Lips, 2018. "Financial Ratios as Indicators of Economic Sustainability: A Quantitative Analysis for Swiss Dairy Farms," Sustainability, MDPI, vol. 10(8), pages 1-20, August.
    7. Hoppe, Robert A., 2014. "Structure and Finances of U.S. Farms: Family Farm Report, 2014 Edition," Economic Information Bulletin 262118, United States Department of Agriculture, Economic Research Service.

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