A Dupont Analysis Report for - Center for Dairy Profitability
A Dupont Analysis Report for ______
By
Gregg Hadley, Ph.D.
Associate Professor of Agricultural Economics
Extension Farm Management Specialist
UW-River Falls, UW-Extension, and the Center for Dairy profitability
Executive Summary
Financial Measures Analysis Results
1) DuPont Analysis
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | |ROROA |6.58 % | |13.28 % |ROROA |8.55 % | |21.90 % | |ATO |0.46 | |0.58 |ATO |0.46 | |0.71 | |OPM |14.23% | |22.89 % |OPM |18.46 % | |30.96 % | |
2) Factors Affecting ATO (Price, Yield and Asset Utilization Issues; For More Asset Utilization Issues Please See Section 6)
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | |Milk Price |$19.20 | |$19.56 |Milk Price |$18.80 | |$18.92 | |Crop Sales Ratioa |5 % | |3 % |Crop Sales Ratioa |4 % | |2 % | |Crop Sales/cwt |$1.05 | |$0.82 |Crop Sales/cwt |$0.84 | |$0.40 | |Crop Sales/Cow |$233 | |$191 |Crop Sales/Cow |$184 | |$94 | |Crop Sales/Acre |$94 | |$93 |Crop Sales/Acre |$71 | |$42 | |Milk/Cow |22,145 | |23,392 |Milk/Cow |22,002 | |23,815 | |Assets/Cow |$11,494 | |$10,102 |Assets/Cow |$10,969 | |$8,359 | |Herd Size |163 | |232 |Herd Size |151 | |226 | |Crop Acres/Cow |2.48 | |2.06 |Crop Acres/Cow |2.60 | |2.23 | |a) ( Crop Sales / Total Income ) * 100 %
Factors Affecting ATO Results:
3) Factors Affecting OPM Issues (Cost and Profit Efficiency Issues)
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | |NFIOR |10 % | |16 % |NFIOR |16 % | |24 % | |TBCR |64 % | |59 % |TBCR |59 % | |53 % | |WPR |10 % | |10 % |WPR |10 % | |10 % | |IER |4 % | |4 % |IER |5 % | |3 % | |DER |12 % | |12 % |DER |10 % | |10 % | |
4) Factors Affecting Total Basic Cost Ratio
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | | Feed Ratio |24 % | |23 % | Feed Ratio |20 % | |19 % | |Breeding Ratio |1 % | |1 % |Breeding Ratio |1 % | |1 % | |Veterinary Ratio |3 % | |2 % |Veterinary Ratio |3 % | |3 % | |Chemical Ratio |1 % | |1 % |Chemical Ratio |1 % | |1 % | |Fertilizer Ratio |2 % | |2 % |Fertilizer Ratio |3 % | |2 % | |Seed Ratio |2 % | |2 % |Seed Ratio |2 % | |2 % | |All Other Basic Cost Ratio |31 % | |28 % |All Other Basic Cost Ratio |29 % | |25 % | |Gregg’s Get Them Fed Ratioa |24 % | |25 % |Gregg’s Get Them Fed Ratio |22 % | |22 % | |Fertilizer/Acre |$44 | |$57 |Fertilizer/Acre |$55 | |$44 | |a) Feed Ratio + Chemical Ratio + Fertilizer Ratio + Seed Ratio – Crop Sales Ratio
Factors Affecting TBC Results
5) Factors Affecting IER
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | |Ending Current Ratio |3.8 | |3.4 |Ending Current Ratio |3.5 | |4.8 | |Ending Debt to Asset Ratio |.48 | |.46 |Ending Debt to Asset Ratio |.49 | |.43 | |Total Debt Coverage Margin |3.4 | |4.7 |Total Debt Coverage Margin |3.8 | |6.1 | |Debt/Cow |$3,808 | |$3,470 |Debt/Cow |$3,596 | |$2,740 | |
Factors Affecting IER Results:
6) Factors Affecting DER and Asset Utilization
2008
Measure |Average
Profit |Your’s |High
Profit |2007
Measure |Average
Profit |Your’s |High
Profit | |Ending Equipment Asset Value/Cow |$1,604 | |$1,442 |Ending Equipment Asset Value/Cow |$1,537 | |$1,270 | |Ending Building Asset Value/Cow |$2,356 | |$2,251 |Ending Building Asset Value/Cow |$2,160 | |$1,863 | |Ending Land and Home Asset Value/Cow |$2,926 | |$1,863 |Ending Land and Home Asset Value/Cow |$3,015 | |$1,169 | |
Factors Affecting DER and Asset Utilization Results:
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