What do the terms in the ratios area of the results mean?
Ratios can provide useful tools in managing an operation. Whilst they may not provide an answer or reason as to why something such as a cost has blown out, they can highlight issues particularly when considered over a number of years. This can prove useful in setting guidelines for an operation in respect of managing costs or debt. For example it may be useful to set a goal of managing farm costs so that they fall within a range of 50 to 65% of total farm income and finance repayments to be lower than 30%.
