Farm Business & Financial Management
Farm Financial Ratios Guide
A reference guide to common farm financial ratios, what each one measures and how to read it. Helps owners and lenders judge liquidity, solvency, profit and efficiency.
Download free PDF1 page, US Letter, prints clean in black and white
GuideFarm Business & Financial ManagementFree PDF
The steps on this page
- Gather your balance sheet and income statement
- Work out liquidity measures such as current ratio
- Check solvency with debt to asset ratio
- Review profitability, including return on assets
- Look at efficiency measures
- Compare ratios to prior years
- Compare with peer farms of your type
- Note ratios that need attention
- Discuss findings with your lender
How to use this guide
Walk a new hand through the steps once, then let them use the page on their own. Add your own notes as you learn what works.
Where to check the details
This sheet is a general template, so confirm specifics with your own manuals, labels and local rules. For current official guidance, start with USDA Economic Research Service and Farm Credit.
For more in this area, see the farm loans, grants and taxes. Between chores, farm.FM has farm humor, including Farm Accidents Aren’t Fun, and agribusiness farm stories.