Скачать или смотреть Financial Measures and Ratios: Repayment Capacity

This is one in a series to introduce you to financial measures and ratios. This video provides information on measuring your farm’s repayment capacity. Repayment capacity measures a farm's ability to repay term debt from both farm and non-farm income. It shows whether the cash generated from the farm and other sources will be sufficient to make principal and interest payments when due.

Through the preparation of your management reports (financial statements), you have completed the historical review and understanding of your farm business’s financial position and performance. Financial measures, as absolute measures or financial ratios, can be most informative when analyzed to the same measures in the previous time periods or benchmarked to comparable farm businesses.
Using information generated from the management reports (financial statements), you can benchmark your business against other farms in the industry, determine strengths and weaknesses, measure financial progress, set financial goals,and future management and decision-making.

This material was developed by University of Wisconsin - Madison Division of Extension educators and specialists. The material is supported through funding from USDA/NIFA.

For more information on financial measures and ratios, you can visit the Extension Farm Management website at https://farms.extension.wisc.edu/arti.... ---
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