Financial analysis of different agricultural household

This book dealt with the objectives of financial analysis of farms. including socioeconomic investigation and analysis of balance sheet income statement and ratios. Socioeconomic analysis showed that indebtedness was higher in large farms than those of small and medium ones. Large farms also engaged more in farm activities than others. All of the asset position income expenditure and saving were positively related with farm size but non-farm income was negatively related. Analysis of balance sheet depicted that all the farms became able to generate a positive net worth which was the highest in large farms followed by small and medium ones in terms of percentage term. Results of ratio analysis expressed that none of the farms was fully financially strong. But maximum of seven ratios were favorable to large farms followed by small and medium farms.