Popular measures of solvency include the
- debt-to-asset ratio,
- debt-to-equity ratio, and
- equity-to-asset ratio.
Assets, Debt, and Wealth
Suggested citation for linking to this discussion:
U.S. Department of Agriculture, Economic Research Service. Farm Sector Income & Finances: Assets, Debt, and Wealth, February 4, 2022.
The farm business balance sheet reports estimates of the current market value of farm business sector assets, debt, and equity as of December 31 of a given year. It is called a "balance sheet" because of the accounting relationship: assets – debt = farm equity. Farmers and ranchers, agribusinesses and farm lenders, program administrators, policy analysts, and others often need information on ...