Sunday, March 20, 2022

Farm Sector Solvency, Liquidity, and Profitability Expected to Worsen Slightly in 2022

Solvency is a measure of the ability of a farm or ranch operation to satisfy its debt obligations when due. 

Popular measures of solvency include the 
  • debt-to-asset ratio
  • debt-to-equity ratio, and 
  • equity-to-asset ratio
In 2022, these three solvency measures are expected to slightly worsen because debt is forecast to grow at a faster rate than the value of assets.]...ERS-USDA

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. 

No comments:

Post a Comment


Search This Blog

ARCHIVE List 2011 - Present