Benchmarks: Financials

Question 1

Goals: IOFC

Answer 1

> $6.00/cwt Avg: $5.00

Question 2

Goals: Investment per cow

Answer 2

Goal $6,000
Avg: $7,000 -$8,000
Problem: >$8,000

Question 3

Goals: Livestock expenses, Labor expenses

Answer 3

5-6%

11-12%

Question 4

Goals: ROA: Return On Assets

Answer 4

Goal 8-10%

Problem: 4%

Question 5

Goals: ATO: Asset Turnover Ratio

Answer 5

Goal >50%

Problem: <30%

Question 6

Goals: Percent (%) Equity (part of solvency)

Answer 6

Goal >50%

Question 7

Goals: Current Ratio % equity

Answer 7

> 1.7
50-55%
Problem: <1.1
<45

Question 8

Goals: Operating expense as % of gross income

Answer 8

<70%

Problem: >80%

Question 9

Goals: Debt/cow

Answer 9

$2,500

Problem: >4,000

Question 10

Goals: Labor (dairy only)

Answer 10

90-100/cow

Or >1 mil lb/worker

Question 11

Goal: Investment/cow

Answer 11

$6,000