Interpreting FR&M – Profitability Measures

Interpreting Financial Statements & Measures, Dale Nortdquist, Robert Craven, and Pauline Van Nurden, UMN-CFFM (April 2021)

Financial Ratios and Measures:

Profitability Measures – Net Farm Income

In order to serve as a useful guide to decision making, profitability must be properly defined and understood.

Profitability is also considered the Enterprise Analysis section, including how profit margins are calculated on an enterprise and whole farm level and how to use that information when evaluating farm success.