Profitability measures and financial structure: a comparison of low-sales, medium-sales, and large family operations in the United States

Abstract

Analysts use financial ratios to evaluate the performance and sustainability of businesses including farms and ranches. In this fact sheet we evaluate the performance of farms and ranches ranked according to their return on assets (ROA). The operations are divided into classes by sales volume, so that high, average and low financial performance is compared both within and across sales classes. These comparisons provide insights into the nature and cause of variation in performance across operations.