extension.osu.edu

676
-1

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
676
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
28
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

extension.osu.edu

  1. 1. FARM RECORDS <ul><li>FARM RECORD ANALYSIS </li></ul>
  2. 2. FARM RECORDS CONCEPTS <ul><li>1. INTRODUCTION TO RECORDS </li></ul><ul><li>2. ACCOUNTING EQUATION </li></ul><ul><li>3. BALANCE SHEET </li></ul><ul><li>4. INCOME STATEMENT </li></ul><ul><li>5. INVENTORY </li></ul><ul><li>6. DEPRECIATION </li></ul><ul><li>7. ACCOUNTING METHODS </li></ul><ul><li>8. CASH FLOW </li></ul><ul><li>9. RECORD S SYSTEMS </li></ul><ul><li>10. COMPUTERIZED RECORDS </li></ul><ul><li>11. LABOR RECORDS </li></ul><ul><li>12. FARM RECORDS ANALYSIS </li></ul><ul><li>13. INCOME TAX </li></ul>
  3. 3. TEXT BOOK READINGS <ul><li>KAY & EDWARD. FARM MANAGEMENT 5TH ED. PGS 73-75; 88- 93 </li></ul>FARM RECORDS RESOURCE BOOK: PGS 79 - 86 FARM RECORDS ANALYSIS
  4. 4. LESSON OBJECTIVES <ul><li>1. DISCUSS THE PROCESS OF USING RECORDS TO ANALYZE A FARM BUSINESS </li></ul><ul><li>2. CALCULATE AND EVALUATE CAPITAL POSITION RATIOS: LIQUIDTY AND SOLVENCY </li></ul><ul><li>3.CALCULATE AND EVALUATE PROFITABILITY MEASURES AND RATIOS </li></ul><ul><li>4. CALCULATE AND EVALUATE FINANCIAL EFFICIENCY RATIOS </li></ul><ul><li>5. MAKE SUGGESTIONS ON HOW TO IMPROVE LIQUIDITY, SOLVENCY, AND PROFITABILITY. </li></ul><ul><li>6. DISCUSS NON-FINANCIAL MEASURES OF PERFORMANCE </li></ul>AFTER THIS LESSON, THE STUDENT SHOULD BE ABLE TO: FARM RECORDS ANALYSIS
  5. 5. FARM RECORDS ANALYSIS DISCUSSION POINTS I. BUSINESS ANALYSIS II. FINANCIAL POSITIONS RATIOS III. CAPITAL POSITION STANDARDS IV. IMPROVING CAPITAL POSITION V. FIN PERFORMANCE RATIOS VI. IMPROVING FIN PERFORMANCE VII. NON-FINANCIAL PERFORMANCE
  6. 6. I. BUSINESS ANALYSIS <ul><li>1. RECEIPTS </li></ul><ul><li>2. EXPENSES </li></ul><ul><li>3. DEPRECIATION </li></ul><ul><li>4. G ARBAGE I N = G ARBAGE O UT </li></ul>A. KEEPING FINANCIAL RECORDS Learning Objective 12-1 DISCUSS USING RECORDS TO ANALYZE A FARM BUSINESS
  7. 7. <ul><li>&quot; KEEPING comprehensive farm business records is only the first step . Some business operators keep very well organized and detailed records, provide information to their income tax preparer, and then file them away, never actually using the information to either evaluate the current status of the business or to plan for its future. The information which can be obtained from farm business records is a valuable tool for business management decisions. ” </li></ul>  www.griffin.peachnet.edu/caes/agcrisis/content/records.htm Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  8. 8. B. SUMMARIZING FINANCIAL RECORDS <ul><li>1. INCOME STATEMENT </li></ul>3. CASH FLOW 2. BALANCE SHEET Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  9. 9. <ul><li>1. WHY </li></ul><ul><li>a. FIND STRENGTHS & WEAKNESS </li></ul><ul><li>b. MAKE COMPARISONS </li></ul>C. ANALYZING FINANCIAL RECORDS: 1) AT THE FARM LEVEL a). TREND ANALYSIS b). COMPARE TO HISTORY c). IDENTIFY GROWTH/DECLINE d). COMPARE TO PLANS Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  10. 10. 2). AT THE INDUSTRY LEVEL a). INDUSTRY TRENDS b). COMPARE TO INDUSTRY AVE YOU INDUSTRY Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  11. 11. 2. HOW: RATIO ANALYSIS e. EFFICIENCY a. LIQUIDITY ABILITY TO PAY BILLS ON TIME WITHOUT DISRUPTING NORMAL BUSINESS OPERATIONS   b. SOLVENCY MEASURES AMT OF BORROWED CAPITAL (DEBT) A BUSINESS USES RELATIVE TO OWNER'S EQUITY c. PROFITABILITY MEASURES THE EXTENT TO WHICH A BUSINESS GENERATES A PROFIT FROM RESOURCES d. REPAYMENT MEASURES ABILITY TO REPAY FARM DEBT FROM FARM AND NON-FARM INCOME MEASURE HOW  INTENSIVELY  A BUSINESS USES ASSETS TO GENERATE GROSS REVENUES Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  12. 12. <ul><li>A. FINANCIAL MEASURES ($’S) </li></ul><ul><li>1. FINANCIAL POSITION :BAL SHEET </li></ul><ul><li>a. GUAGE WHERE WE ARE </li></ul><ul><li>b. CAPITAL POSITION </li></ul><ul><li>(1). LIQUIDITY </li></ul><ul><li>(a). PAY BILLS ON TIME </li></ul><ul><li>(2). SOLVENCY </li></ul><ul><li>(a). PAY ALL BILLS </li></ul><ul><li>(3). REPAYMENT CAPACITY </li></ul><ul><li>(a.). ABILITY FOR NEW DEBT </li></ul>MGT MEAS OVERVIEW Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  13. 13. <ul><li>a. HOW WE DID </li></ul><ul><li>b. EFFICIENCY </li></ul><ul><li>c. PROFITABILITY </li></ul><ul><li>B. NON-FINANCIAL PERFORMANCE </li></ul><ul><li>(PHYSICAL UNITS) </li></ul><ul><li>1. PRODUCTIVITY </li></ul><ul><li>2. EFFICIENCY </li></ul>2. FINANCIAL PERFORMANCE Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  14. 14. II. FINANCIAL POSITION RATIOS <ul><li>A. CAPITAL POSITION RATIO (BAL SHEET) </li></ul><ul><li>1. LIQUIDITY : PAY BILL ON TIME </li></ul><ul><li>a. CURR RATIO = CUR ASSETS / CUR LIAB </li></ul>b. WORKING CAP = CUR ASSETS - CUR LIAB Reflects your farms ability to meet short term debt without disrupting normal business Measures amount of money you would have left if current assets were sold and current liabilities paid Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  15. 15. c. WORKING RATIO = <ul><li> ( CURR ASSETS + WORKING SSETS) </li></ul><ul><li>(CURR LIAB + WORKING LIAB) </li></ul>d. CURR DEBT % = CURR LIAB / TOTAL LIAB What proportion of total debt is is due within one year Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  16. 16. <ul><li>a. ASSET-DEBT RATIO = TOT ASSETS / TOT LIAB </li></ul><ul><li>b. ASSET-EQUITY RATIO = TOT ASSETS / EQUITY </li></ul><ul><li>c. DEBT-ASSET RATIO = TOT LIAB / TOT ASSETS </li></ul><ul><li>d. DEBT-EQUITY RATIO = TOT LIAB / EQUITY </li></ul><ul><li>e. EQUITY-ASSET RATIO = EQUITY / TOT ASSETS </li></ul><ul><li>f. EQUITY-DEBT RATION = EQUITY / TOT LIAB </li></ul>2. SOLVENCY : PAY ALL BILLS Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  17. 17. III. CAPITAL POSITION STANDARDS <ul><li>A. LIQUIDITY </li></ul><ul><li>1. CURR RATIO </li></ul><ul><li>2. CURR DEBT % </li></ul><ul><li>GOOD </li></ul><ul><li>>1.5:1 </li></ul><ul><li><30% </li></ul>MID 1.5-1.0:1 30-40% BAD <1.0:1 >40% Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  18. 18. <ul><li>B. SOVENCY </li></ul><ul><li>1. ASSET/DEBT </li></ul><ul><li>2. ASSET/EQUITY </li></ul><ul><li>3. DEBT/ASSET </li></ul><ul><li>4. DEBT/EQUITY </li></ul><ul><li>5. EQUITY/ASSET </li></ul><ul><li>6. EQUITY/DEBT </li></ul><ul><li>GOOD </li></ul><ul><li>>1.5 :1 </li></ul><ul><li><30% </li></ul><ul><li><.4 :1 </li></ul><ul><li><.6 :1 </li></ul><ul><li>>.6 : 1 </li></ul><ul><li>>2.3 :1 </li></ul>MID 1.5-1.1 :1 30-40% .4 - .7 : 1 .6 - 2.3 : 1 .6 - .3 : 1 2.3 - .4 :1 BAD <1.1 :1 >40% >.7 :1 >2.3 : 1 <.3 : 1 <.4 : 1 Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1
  19. 19. DIFFERENT AG INDUSTRY RATIOS 2.5:1 2.0:1 1.75:1 2.5:1 1.5:1 40% 50% 60% 35% 65% .67:1 1.0:1 1.5:1 .54:1 1.86:1 Learning Objective CALCULATE AND EVALUATE CAPITAL POSITION RATIOS 12-1 CASH GRAIN GRAIN& LVSTK LVSTK ONLY COW/ CALF COMM FEEDLOT LIQUIDITY CURR RATIO SOLVENCY DEBT/ASSET DEBT/EQUIT
  20. 20. IV. IMPROVING CAPITAL POSITION <ul><li>A. IMPROVING LIQUIDITY </li></ul><ul><li>1. RESTRUCTURE DEB PAYMENT </li></ul><ul><li>a. TIMING AND/OR AMOUNTS </li></ul><ul><li>2. REDUCE FAMILY SPENDING </li></ul><ul><li>3. INCREASE CASH INFLOW </li></ul><ul><li>4. DECREASE CASH OUTFLOW </li></ul><ul><li>B. IMPROVING SOLVENCY </li></ul><ul><li>1. SOLICIT OUTSIDE OWNERSHIP </li></ul><ul><li>2. SELL AND LEASE BACK </li></ul><ul><li>3. REFINANCE </li></ul>Learning Objective 5 SUGGEST HOW TO IMPROVE LIQUIDITY, SOLVENCY, AND PROFITABILITY
  21. 21. V. FINANCIAL PERFORMANCE <ul><li>A. PROFITABILITY FROM INCOME ST </li></ul><ul><li>1. NET CAST INCOME = </li></ul><ul><li>CASH OPER REC - CASH OPER EXP(F&V) </li></ul><ul><li>2. NET OPERATING INCOME = </li></ul><ul><li>NCI + (NON-CASH REC) - (NON-CASH EXP) </li></ul><ul><li>3. NET FARM INCOME = </li></ul><ul><li>NET OPER INC + CAP GAINS - CAP LOSSES </li></ul><ul><li>4. OPERATING PROFIT MARGIN = </li></ul><ul><li>NET FARM INC + INC EXP - VAL OF OPER LABOR </li></ul><ul><li>VALUE OF PRODUCTION </li></ul><ul><li>5. ABSOLUTE MEASURES </li></ul><ul><li>6. INTERNAL COMPARISONS ONLY!! </li></ul>Learning Objective 3 CALCULATE & EVALUATE PROFITABILITY MEASURES
  22. 22. <ul><li>1. RETURN TO CAPITAL </li></ul><ul><li>a. RETURN ON ASSETS (ROA)= </li></ul><ul><li>(NET FARM INC + INT EXP – OPER LAB VAL) </li></ul><ul><li>TOTAL FARM ASSETS </li></ul><ul><li>DOESN’T CONSIDER DEBT IMPACT </li></ul>C. FROM INC ST & BAL SHEET b. RETURN ON EQUITY (ROE) = ( NET FARM INC – OPER LABOR VALUE ) TOTAL FARM EQUITY Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  23. 23. <ul><li>a. LABOR & MGT INCOME [$’S]= </li></ul><ul><li>(NET FARM INC + INT EXP-LAB VAL-OPP INT) </li></ul><ul><li>b. MGT INC [VAL OF MGT SKILLS] = </li></ul><ul><li>LABOR & MGT INC - (OPER LABOR ) </li></ul><ul><li>c. RETURN ON LABOR [$/HR] = </li></ul><ul><li>L AB & MGT INC - (0PER REC * .05) HOURS WORKED </li></ul>2. RETURN TO LABOR Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  24. 24. VII. FINANCIAL PERFORMANCE STANDARDS <ul><li>A. EFFICIENCY </li></ul><ul><li>1. GROSS RATIO </li></ul><ul><li>2. VAR RATIO </li></ul><ul><li>3. FIXED RATIO </li></ul><ul><li>4. INTEREST </li></ul><ul><li>5. DEPREC </li></ul><ul><li>6. NET FARM INC </li></ul><ul><li>7. ASSET T.O. </li></ul><ul><li>GOOD </li></ul><ul><li><85% </li></ul><ul><li><65% </li></ul><ul><li><20% </li></ul><ul><li><10% </li></ul><ul><li><10% </li></ul><ul><li>>15% </li></ul><ul><li>>25% </li></ul>MID 85-95% 65-80% 20-35% 10-20% 10-15% 10-15% 15-25% BAD >95% >80% >35% >20% >15% <05% <15% Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  25. 25. <ul><li>B. PROFITABILITY </li></ul><ul><li>1. RET ON ASSETS </li></ul><ul><li>2. RET ON EQUITY </li></ul><ul><li>3. MGT INCOME </li></ul><ul><li>4. OPER PROFIT </li></ul><ul><li>5. RET ON LABOR </li></ul><ul><li>GOOD </li></ul><ul><li>>9% </li></ul><ul><li>>6% </li></ul><ul><li>>5% </li></ul><ul><li>>25% </li></ul><ul><li>>$8 /HR </li></ul>MID 4 - 9% 3 - 6% 25 - 10% $4 - 8 /HR BAD <4% <3% <5% <10% <$4 Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  26. 26. DIFFERENT AG INDUSTRY RATIOS 3% 7.5 5.5 2.5% 4.4% 5% 15% 13.8% 3.85% 12.6% 0.35 0.80 1.5 0.25 1.75 FIN EFF Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3 CASH GRAIN GRAIN& LVSTK LVSTK ONLY COW/ CALF COMM FEEDLOT PROFIT ROA ROE ASSET TURNOVER
  27. 27. VIII. IMPROVING FINANCIAL PERFORMANCE RATIOS <ul><li>A. IMPROVE PRODUCTION MANAGEMENT </li></ul><ul><li>1. IMPROVE ENTERPRISE EFFICIENCY </li></ul><ul><li>2. IMPROVE ENTERPRISE COMBINATIONS </li></ul><ul><li>B. IMPROVE MARKETING MANAGEMENT </li></ul><ul><li>1. ASSES MARKETING EFFECTIVENESS </li></ul><ul><li>2. INCREASE AVERAGE PRICE RECEIVED </li></ul><ul><li>C. IMPROVE FINANCIAL MANAGEMENT </li></ul><ul><li>1. ASSES LOAN TERMS </li></ul><ul><li>2. DO ENTERPRISE COSTING </li></ul>Learning Objective 5 SUGGEST HOW TO IMPROVE LIQUIDITY, SOLVENCY, AND PROFITABILITY
  28. 28. DU PONT EQUATION ROE = ASSET TURNOVER X NET PROFIT MARGIN X LEVERAGE ASSET MANAGEMENT REV & EXPENSE MANAGEMENT DEBT MANAGEMENT Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  29. 29. ASSET TURNOVER <ul><li>1) ASSET TURNOVER MEASURES THE RATE AT WHICH THE FARM CAN PRODUCE SALES EQUAL TO THE ASSET VALUE USED </li></ul>2. BIOLOGICAL PRODUCTION USUALLY RESULTS IN LOW TURN OVER RATES 3. FACTORS REDUCING TURNOVER a. REPRODUCTION PROBLEMS b. PRODUCTION PROBLEMS ATO = GROSS REC / TOTAL ASSETS Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  30. 30. NET PROFIT MARGIN <ul><li>NET PROFIT MARG = NET INCOME / GROSS REC </li></ul>1) PROFIT EFFICIENCY RATHER THAN PROFIT LEVEL a). EXPENSE CONTROL: FEED EFFICIENCY;COST / # OF GAIN LABOR EXPENSE FACILTIES EXP: DEPREC & INTEREST b). REVENUE MANAGEMENT: BETTER BASE MKT, PRICE PREMIUMNS Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  31. 31. LEVERAGE <ul><li>LEVERAGE = 1 / EQUITY/ TOTAL ASSETS </li></ul>1) IF YOUR ARE LEVERAGED & PROFITABLE, ROE WILL INCREASE 2) LEVERAGE: MULTIPLES YOUR PROFITS MULTIPLES YOUR LOSSES Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  32. 32. DU PONT EXAMPLE FOR SWINE FARM Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  33. 33. <ul><li>ASSET MANAGEMENT </li></ul><ul><li>(GROSS REV/TOT ASSETS) </li></ul><ul><li>CULLING RATE </li></ul><ul><li>CALVING INTERVAL </li></ul><ul><li>DAYS OPEN </li></ul><ul><li>MORTALITY RATES </li></ul><ul><li>SERVICES PER CONCEPTION </li></ul><ul><li>INVESTMENT PER COW </li></ul><ul><li>AGE AT FRESHING </li></ul><ul><li>INVESTMENT PER MAN </li></ul>DU PONT EXAMPLE FOR DAIRY FARM Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  34. 34. DU PONT EXAMPLE FOR DAIRY FARM <ul><li>LABOR EXPENSE </li></ul><ul><li>DEPREC EXPENSE </li></ul><ul><li>FEED EXPENSE </li></ul><ul><li>FEED EFFICIENCY </li></ul><ul><li>MILK PRICE </li></ul><ul><li>% FAT </li></ul><ul><li>% SOLIDS </li></ul><ul><li>SOMATIC COUNT </li></ul><ul><li>% PROTEIN </li></ul><ul><li>ROLLING HERD AVE </li></ul><ul><li>MILK PER MAN </li></ul>NET PROFIT MARGIN (NET INC/GROSS REV) Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  35. 35. <ul><li>LEVERAGE </li></ul><ul><li>(1/(EQUITY/TOTASSETS) </li></ul><ul><li>WORKING CAPITAL </li></ul><ul><li>CURRENT RATIO </li></ul><ul><li>WC/GROSS RATIO </li></ul><ul><li>WC/COW </li></ul><ul><li>TOTAL EQUITY </li></ul><ul><li>TERM DEBT/EQUITY </li></ul><ul><li>TOT DEBT/EQUITY </li></ul><ul><li>INTEREST EXPENSE </li></ul>DU PONT EXAMPLE FOR DAIRY FARM Learning Objective CALCULATE & EVALUATE PROFITABILITY MEASURES 3
  36. 36. <ul><li>1. WHERE DOES $1 OF REVENUE GO? </li></ul><ul><li>2. GROSS RATIO = TOT EXP/GROSS OPER REC </li></ul><ul><li>a. FR $1 REV; HOW MUCH PD IN EXPENSES? </li></ul><ul><li>3. VARIABLE RATIO=VAR EXP/GROSS OPER REC </li></ul><ul><li>a. FR $1 REV; HOW MUCH PD IN VAR EXP? </li></ul><ul><li>4. FIXED RATIO = FIXED EXP/GROSS OPER REC </li></ul><ul><li>a. FR $1 REV; HOW MUCH PD IN FIX EXP? </li></ul><ul><li>5. DEPR RATIO = DEPR EXP/ GROSS OPER REC </li></ul><ul><li>a. FR $1 REV; HOW MUCH PD IN DEPR EXP? </li></ul><ul><li>6. INTEREST RATIO = INT EXP/GROSS OPER REC </li></ul><ul><li>A. FR $1 REV; HOW MUCH PD IN INT EXP? </li></ul>A. FINANCIAL EFFICIENCY FR INCOME ST. Learning Objective 4 CALCULATE AND EVALUATE FINANCIAL EFFICIENCY RATIOS
  37. 37. VIII. NON-FINANCIAL PERFORMANCE STANDARDS: A. LIVESTOCK PRODUCTION <ul><li>1,000,000 #’S </li></ul><ul><li>2,500 HEAD </li></ul><ul><li>400,000 #’S </li></ul><ul><li>250,000 #’S </li></ul><ul><li>1,000,000 #’S </li></ul><ul><li>1,300 HEAD </li></ul><ul><li>DAIRY: 50-70 COWS @18,000 </li></ul><ul><li>FEEDER PIG: 150-175 SOWS @16 </li></ul><ul><li>FAR/FIN: 100-125 SOWS @ 16 </li></ul><ul><li>COW/CALF: 500 COWS:500# CALF </li></ul><ul><li>FEED LOT: 1000 HD @1100 # </li></ul><ul><li>SHEEP: 750 EWES @1.75 LAMBS </li></ul>Learning Objective 6 DISCUSS NON-FINANCIAL MEASURES OF PERFORMANCE
  38. 38. B. LIVESTOCK EFFICIENCY <ul><li>4 LBS FEED/LB OF GAIN </li></ul><ul><li>1.5-2.0 #’S/HD/DAY </li></ul><ul><li>8 LBS FEED/LB OF GAIN </li></ul><ul><li>2.0-2.5 #’S/HD/DAY </li></ul><ul><li>SWINE </li></ul><ul><li>FEED EFFICIENCY </li></ul><ul><li>RATE OF GAIN </li></ul><ul><li>BEEF </li></ul><ul><li>FEED EFFICIENCY </li></ul><ul><li>RATE OF GAIN </li></ul>Learning Objective 6 DISCUSS NON-FINANCIAL MEASURES OF PERFORMANCE
  39. 39. : C. CROP PRODUCTION 700-1000 ACRES <ul><li>YIELDS </li></ul><ul><li>125 BU </li></ul><ul><li>42 BU </li></ul><ul><li>65 BU </li></ul><ul><li>85 BU </li></ul><ul><li>6.5 TONS </li></ul><ul><li>4.0 TONS </li></ul><ul><li>20.0 TONS </li></ul><ul><li>CROP </li></ul><ul><li>CORN </li></ul><ul><li>SOYBEANS </li></ul><ul><li>WHEAT </li></ul><ul><li>OATS </li></ul><ul><li>ALFALFA HAY </li></ul><ul><li>MIXED HAY </li></ul><ul><li>CORN SILAGE </li></ul>Learning Objective 6 DISCUSS NON-FINANCIAL MEASURES OF PERFORMANCE
  40. 40. SUMMARY <ul><li>1. MGT MEASURES ARE RELATIVE NO’S THAT ALLOW US TO COMPARE BETWEEN FARMS </li></ul><ul><li>2. THE MAJOR AREAS FOR COMPARISON ARE: </li></ul><ul><li>A. FINANCIAL POSITION </li></ul><ul><li>B. PROFITABILITY </li></ul><ul><li>C. REPAYMENT CAPACITY </li></ul><ul><li>D. FINANCIAL EFFICIENCY </li></ul><ul><li>3. NON FINANCIAL PERFORMANCE RATIO ANALYZE ENTERPRISE PERFORMANCE </li></ul>RECORD ANALYSIS
  41. 41. RECORDS ANALYSIS CONCEPT REINFORCEMENT <ul><li>WHO : YOU </li></ul><ul><li>WHERE: Pg 85; FARM RECORDS RESOURCE BOOK </li></ul><ul><li>WHEN: ANNOUNCED IN CLASS </li></ul><ul><li>HOW: CALCULATE EACH OF THE RATIOS USING INFO AT THE TOP </li></ul>FARM RECORD ANALYSIS
  42. 42. ASSOCIATED LAB ACTIVITIES <ul><li>LAB 9: MANAGEMENT MEASURES </li></ul>FARM RECORD ANALYSIS
  43. 43. PERFORMANCE QUIZ 1 TRY : 1/2 LETTER GRADE <ul><li>USING A SHEET OF FORMULAS AND DATA THAT YOU WILL BE GIVEN, YOU WILL NEED TO CALCULATE VARIOUS MGT MEASURES </li></ul><ul><li>9 CORRECT: 60% LEVEL </li></ul><ul><li>15 CORRECT: PEFECT SCORE </li></ul><ul><li>16-20 CORRECT: EXTRA CREDIT </li></ul>FARM RECORD ANALYSIS
  44. 44. NEXT TOPIC <ul><li>INCOME TAX </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×