AGRI Sector Services - Financial Management Report
The Financial Management Report comes in six main sections. Each is on one page and is very easy to read.
Comparative Analysis Report
Comparative Analysis Report compares your performance with other farms in the same type of farming - creamery milk for example. You can compare with the average and the most profitable 10%.
Costs are broken down as a percentage of gross farm income. This allows you to identify costs which are out of line.
The Dairy Management Report
The Dairy Management Report gives details of prices, returns and costs on a per gallon basis. Comparisons are made with farmers making the highest profit per gallon another very useful exercise.
Source and Use of Funds Statements
Source and Use of Funds Statements moves away from detailed costs and paints the big financial picture. It shows whether your finances are improving or worsening.
Borrowing/Investment Capacity Statement
Borrowing/Investment Capacity Statement is the amount available to service all borrowings, leases and investments. This is one of the key financial measures of the farm business.
It shows the capacity of the farm business to service debt and investment. This could be broken down further. One figure of increasing interest to farmers is the amount of money available for discretionary spending. This can be called Free Cash Flow.
Cash Flow is the money a farmer can use to grow his business.
|BORROWING/INVESTMENT CAPACITY STATEMENT|
|INTEREST AND LEASE CHARGES||€7,015|
|LESS DRAWINGS AND TAX||€26611|
|BALANCE TO SERVICE BORROWINGS||€3362|
Trading, Profit & Loss Account
Farm Balance Sheet
Farm Balance Sheet gives a detailed breakdown of what the farmer owns and his debts. The result is Net Worth. You can see at a glance whether Net Worth is increasing or decreasing. This is an important measure of business progress.