Business analysis of container nurseries in Florida

J. Robert Strain
Alan W. Hodges

Economic Information
Report 266

Business Analysis of Container
Nurseries in Florida, 1988

Central Science
Library
MAR 14 1990
S University of Florida

Food & Resource Economics Department
Agricultural Experiment Stations and
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611

December 1989

FloridaI NureryA Business YAnaltis 1 series

Container Nurseries

ABSTRACT
Average sales, costs, returns, and efficiency indicators are presented for 42 wholesale woody ornamental
container nurseries in Florida, for the tax year of 1988. Plant sales averaged $381,829, and growth in the value
of plant inventory during the year was $42,167. When adjustments were made for changes in inventories and
miscellaneous income, total gain for the year was $423,997. Total costs of production, including cash expenses
and non-cash allowances for depreciation, but excluding any returns to the operator averaged $353,026. Net
nursery income averaged $77,585. Capital investment including plant inventory, land, equipment, buildings,
supplies, and accounts receivable amounted to $907,529. Average return on capital investment was 4.2
percent. Comparable information is presented also for subsamples of largest and smallest nurseries.

KEY WORDS: Woody ornamental container nursery business analysis, income, costs, investment, efficiency
measures, Florida.

ACKNOWLEDGEMENTS
This report was made possible by the cooperating woody ornamental container nursery operators who
made available their production and accounting records on a confidential basis for analysis and averaging. In
addition, assistance and encouragement were supplied by Extension Ornamental Horticultural Agents John
Begeman, Gary Brinen, Gerri Cashion, Terry Delvalle, Larry Halsey, Loretta Hodyss, Mike Holsinger,
DeArmand Hull, Linda Landrum, Cathy Neal, Roger Newton, Bill Phillips, Bill Schall, Michael Sweat, Donna
Thaxton, Bob Whittey, Uday Yadav, and Victor Yingst. Acknowledgement and appreciation of the help
received, however, does not alter the fact that errors in the data or in the interpretation of the information
presented herein are the sole responsibility of the authors.

Container Nurseries

ABSTRACT
Average sales, costs, returns, and efficiency indicators are presented for 42 wholesale woody ornamental
container nurseries in Florida, for the tax year of 1988. Plant sales averaged $381,829, and growth in the value
of plant inventory during the year was $42,167. When adjustments were made for changes in inventories and
miscellaneous income, total gain for the year was $423,997. Total costs of production, including cash expenses
and non-cash allowances for depreciation, but excluding any returns to the operator averaged $353,026. Net
nursery income averaged $77,585. Capital investment including plant inventory, land, equipment, buildings,
supplies, and accounts receivable amounted to $907,529. Average return on capital investment was 4.2
percent. Comparable information is presented also for subsamples of largest and smallest nurseries.

KEY WORDS: Woody ornamental container nursery business analysis, income, costs, investment, efficiency
measures, Florida.

ACKNOWLEDGEMENTS
This report was made possible by the cooperating woody ornamental container nursery operators who
made available their production and accounting records on a confidential basis for analysis and averaging. In
addition, assistance and encouragement were supplied by Extension Ornamental Horticultural Agents John
Begeman, Gary Brinen, Gerri Cashion, Terry Delvalle, Larry Halsey, Loretta Hodyss, Mike Holsinger,
DeArmand Hull, Linda Landrum, Cathy Neal, Roger Newton, Bill Phillips, Bill Schall, Michael Sweat, Donna
Thaxton, Bob Whittey, Uday Yadav, and Victor Yingst. Acknowledgement and appreciation of the help
received, however, does not alter the fact that errors in the data or in the interpretation of the information
presented herein are the sole responsibility of the authors.

Container Nurseries iii

TABLE OF CONTENTS
Page
ABSTRACT ............................... ... ...............................
ACKNOW LEDGEMENTS .................................................... ii
LIST OF FIGURES ........................................................* v
LIST OF TABLES ................... ........... ........................... v
LIST OF APPENDIX TABLES ...................................... .................. vi
INTRODUCTION ......................................................... 1
PROCEDU RE .......................................... ................. 1 1
DATA AND RESULTS ...................................................... 2
Size of Business ............ ............................................. 2
Sales and Total Value of Production .................. ....................... 3
Annual sales ........... ............ ................................ 3
Monthly sales ...................... ............ .................... 4
Land, Labor and Capital .................. ............................... 4
Land: growing area .................. .................................. 4
Labor: full-time equivalent persons .................. ....................... 4
Capital: owned and managed ............................ ................ 4
Productivity Indicators ................... ................ .................. 6
Land Use .......................................................... 6
Labor U se ................... ........................................ 7
Capital Use .............................. ............ ................ 8
Capital turnover ..................................................... 8
Capital managed per person .................. ................. ........ 8
Capital managed per acre ..................... ........................ 10
Distribution of managed capital ........................................ 11
Costs of Production .................. ..................................... 11
Costs by expense category* .................... ..... ...................... 11
Salaries and wages ............................. ....................... 11
Production supplies ............................... ................... 11
O their production costs ......................... ............. ........... 11
Administrative and overhead .................................. .......... 11
Total cash costs .................. ................................... 11
Non cash costs ........................................................ 11
Total costs .................................... ..................... 11
Costs as a percent of the total cost .......................................... 12
Salaries and wages ......................................... ........... 12
Production supplies .................................................. 13
Other production costs ................................................ 13
Administrative and overhead ............................................ 13
Total cash costs .............. ....................................... 13
Non cash costs ..................................................... 13
Cost Efficiency ......................................................... 13
Cost per square foot of growing area ....................................... 13
Cost per dollar's worth of production ....................................... 13
Cash costs per dollar of sales ............................................. 15
Incom e Sum mary ............................. .......................... 15
Total gain ........................ .............**..... ............. 15
Cost deductions and net nursery income ...................................... 15
Return to capital .................. ... ................................. 15

iv Container Nurseries

TABLE OF CONTENTS (Continued)
Page
Statement of Financial Position ............................................... 18
A ssets ................................. .......... ................... 18
Cash on hand .................. ......................... ....... 18
Accounts receivable .................................................. 18
Inventory values .................. ...................... ............. 18
Total current assets .................................................. 18
Long term assets .................................................... 18
T otal assets ........................ ............................... 18
Liabilities ........................... ... ..... ..... .................. 18
Current liabilities ......................................................... 19
Long term liabilities ..................................................... 19
Total liabilities ........................... ............. .............. 19
Net W orth .................................. .................. ... ...... 19
Total Profitability Model ......................... .. ........................ 19
Margin Management ................................................... ................. 20
Asset Management .......................................................... 20
Leverage Management ................................ ................... 20

CONCLUDING COMMENTS ......................... ........................ 20

APPENDIX .................................................................... 23
Definitions ....... .......... ..................... ......................... 24
Making Your Own Calculations ........................... .................... 24
Appendix Tables ... ................... ..... ...... ....................... 26

Container Nurseries

LIST OF FIGURES

Figure Page

1 Sales and Total Value of Production .............. ............................. 3
2 M monthly Sales .......................................................... 4
3 Land: Growing Area ................ ...................................... 5
4 Labor: Number of Persons .................................................. 5
5 Capital M managed ......................................................... 6
6 Land Use: Value of Production Per Square Foot ................................... 7
7 Labor Use: Value of Production Per Person ...................................... 8
8 Capital Turnover ........................................................ 9
9 Capital M managed Per Person ................................................. 9
10 Capital Managed Per Acre .......................................... .......... 10
11 Distribution of M managed Capital ............................................... 10
12 Distribution of Costs of Production ............................................. 12
13 Costs Per Square Foot of Growing Area ......................................... 14
14 Costs Per Dollar's W orth of Production .......................................... 14
15 Cash Costs Per Dollar of Sales ................................................ 16
16 Distribution of Total Gain ................... .................... .......... 16
17 R return to C capital ................ .......................................... 17
18 A assets and Liabilities ....................................................... 19
19 Total Profitability Model ................... .................... .......... 21

LIST OF TABLES
Table Page

1 Sales, growing area, people and capital, 42 woody ornamental container nurseries in Florida, 1988 3
2 Costs of production, 42 woody ornamental container nurseries in Florida, 1988 .............. 12
3 Income summary, 42 woody ornamental container nurseries in Florida, 1988 ................ 17

Container Nurseries

LIST OF APPENDIX DATA TABLES
Appendix Table Page

1 Size of business, 42 woody ornamental container nurseries in Florida, 1988 ................ 26
2 Land use indicators, 42 woody ornamental container nurseries in Florida, 1988 .............. 27
3 Labor use indicators, 42 woody ornamental container nurseries in Florida, 1988 ............. 37
4 Capital use indicators, 42 woody ornamental container nurseries in Florida, 1988 ............. 28
5 Costs by expense category, 42 woody ornamental container nurseries in Florida, 1988 ......... 29
6 Percent of total costs by expense category, 42 woody ornamental container nurseries in Florida, 1988 30
7 Costs per acre, 42 woody ornamental container nurseries in Florida, 1988 ................. 31
8 Costs in cents per dollar's worth of production, 42 woody ornamental container nurseries
in Florida, 1988 ............................... ........................ 32
9 Cost in cents per dollar's worth of sales (no adjustment for change in plant
inventory), 42 woody ornamental container nurseries in Florida, 1988 .................. 33
10 Income summary, 42 woody ornamental container nurseries in Florida, 1988 ................ 34
11 Statement of Financial Position, 42 woody ornamental container nurseries in Florida, 1988 ...... 34
12 Financial Ratios and other Profitability Indicators, 42 woody ornamental container
nurseries in Florida, 1988 ............................................... 35

Container Nurseries

BUSINESS ANALYSIS OF CONTAINER NURSERIES IN FLORIDA, 19881

J. Robert Strain and Alan Hodges2

INTRODUCTION

This publication contains information on sales,
costs, returns and production efficiency for woody
ornamental container nurseries in Florida for 1988.
Other publications in this series include reports on
woody ornamental field nurseries, South Florida
foliage plant nurseries, Central Florida foliage plant
nurseries and flowering plant nurseries. Purposes of
the nursery business analysis series include:

1) Furnishing nursery operators with various
physical and economic measures for evaluating the
efficiency of individual nurseries and for making
more informed management decisions;

2) Providing individuals considering entering the
wholesale ornamental plant production business with
an estimate of the input requirements and revenue
potential;

3) Providing industry investors with representative
measures of average business performance;

4) Providing Florida Extension personnel with
business information for conducting educational
programs with nursery operators.

PROCEDURE
The information and averages presented in this
report are based on data supplied by nursery
operators in the form of confidential production
and accounting records. They participated in the
program voluntarily and do not represent a statistical
sample. In fact, the nursery operators participating
in the Florida Nursery Business Analysis Program
probably represent some of the more efficient woody

ornamental container nurseries in Florida, rather
than being typical of the woody ornamental container
nursery industry.

Data were collected for the fiscal year 1988. In
most cases, this was for January through December.
For the others, data for fiscal years ending after July
1, 1987, and before July 1, 1989 were included as
1988 data.

Not all nursery operators received a regular salary
from their operation. In these cases, an estimate of
the value of the time of the operator was collected
and used in the analysis in order to provide a more
equitable basis for comparing data. For the same
reason, interest expense paid by the individual
nursery operator was excluded from the costs listed
in this report, and instead, an interest charge for
the total owned investment was included as a
non-cash cost, calculated at the rate of 12 percent
per year.

The owned capital investment reflects the
depreciated book value of buildings, improvements,
machinery and equipment. Growing plants also are
included as a part of the owned capital investment,
at a value reflecting their average wholesale price,
and discounted in proportion to the percentage of
completion. In the absence of detailed cost
accounting records, a commonly accepted method of
evaluating inventory for an ongoing concern, is to
value all plants at 50 percent of their wholesale
price. Some nursery operators use slightly different
methods, and for this report, the values received
from operators were the values used. Land included
in owned capital investment was valued at the
original purchase price. Although this represents the
actual investment in a nursery operation, it may not
reflect the replacement cost, particularly for older
firms.

1. This document was published as Economic Information Report 266, Florida Cooperative Extension Service, Institute of Food and
Agricultural Science, Food and Resource Economics Department, University of Florida, Gainesville, November, 1989.
2. J. Robert Strain is an Extension Economist, and Alan Hodges is an Economic Analyst, both in IFAS, Food and Resource Economics
Department, University of Florida, Gainesville.

Container Nurseries

The tables and figures present average values for
all 42 nurseries, the average of approximately the
largest third of the firms (13), and the smallest third
of the firms (13). The largest firms had sales of own
plants greater than $500,000, while the smallest
nurseries had sales less than $150,000.

On charts where lines appear indicating the range
of data, the upper line represents the average of the
highest third of firms for the particular measure, and
the lower line is the average for the lowest third.
Nursery operators analyzing their own operations
may find this information especially valuable for
indicating the general area of their business needing
additional study and analysis.

Nurseries participating in the program were
located in the Florida counties of Alachua, Broward,
Baker, Collier, Dade, Duval, Hillsborough, Lake,
Lee, Leon, Marion, Manatee, Martin, Orange, Palm
Beach, Polk, Sarasota, and Volusia. Nursery
operators received an analysis for their own
operation, which contained similar information as
used in this report, shortly after they supplied their
data.

DATA AND RESULTS
The key findings of this report appear in the text
in the form of charts and graphs. The data from
which they were derived may be found in the
appendix tables at the end of this report. The
appendix tables include notations on calculations
involved for those who may wish to examine figures
in further detail, and spaces are provided for entering
figures pertaining to your own firm for comparison.
Where tables appear in this report, arithmetic
inconsistencies from rounding may be noted.

Size of Business
Size of business data in Appendix Table 1
(summarized in Table 1) presents basic information
on size of business and scale of production
operations. When combined with costs of production
in Appendix Table 5, these data provide the basis for
developing most of the measures and indicators
shown in this report.

Sales and Total Value of Production
Annual sales. Sales figures used in this analysis
represent only plants produced by the nursery firm
itself. In other words, if any plants were purchased
for immediate resale, or "brokered", their value was
deducted from total sales to give the value of own
plants sold. Figure 1 illustrates the differences in
the sizes of the industry average, largest, and smallest
woody ornamental container nurseries. Own plant
sales averaged $381,829 for all nurseries, $854,362 for
the largest nurseries, and $74,680 for the smallest
nurseries (Table 1).

Total value of production during the year adjusts
sales for change in the value of the plant inventory.
Increases in the value of plant inventory during the
year mean the total value of the year's productive
activities was greater than sales. For all three
averages, plant inventory change was positive, giving
a total value of production of $423,997 for all
nurseries, $941,937 for the largest nurseries, and
$95,739 for the smallest nurseries (Table 1).

Monthly sales. Figure 2 shows the pattern of
monthly sales for all nurseries, largest nurseries and
smallest nurseries. The pattern for all nurseries
showed a strong peak in sales during the spring
months of the year, and a secondary peak in
October. Sales for the highest month (March)
averaged $42,301, which was 67 percent greater than
those for the lowest month (January, $25,234). Sales
for the three months of March through May, and
October accounted for 40 percent of the year's total
sales.

Container Nurseries 3

Table 1--Sales, acres, people, and capital: 42 Woody Ornamental Container Nurseries in Florida, 1988

Atl Largest Smallest
unit Nurseries Third Third

Value of own plants sold . .... 381,829 854,362 74,680
Change in inventory value. . ... 42,167 87,574 21,059

Total value of production. . ... 423,997 941,937 95,739

Total growing area . . . .acres 11.07 28.48 2.13

Full-time equivalent persons . numberr 12.91 28.37 4.56

Total Owned Capital. . . ... 907,529 2,062,566 309,397
Total Leased Capital . . .... $. 71,167 137,500 19,615

Total Managed Capital... . ... S 978,696 2,200,066 329,013

Figure 1

Sales and Total Value

42 Woody Orn, Container

of Production

Nurseries, 1988

Thousands

All Nurseries

Largest Third

SmaI lest Third

Sales M value of Production

1000

900

600

400

200

0

- ---

- ---- ........... .. ... ...............

... .... .. .. ... .. .. .. .. ... ...... .. ..... .... .. ..

Container Nurseries

Land, Labor and Capital
Land: growing area. Growing area refers to that
portion of the total nursery used to grow plants.
Hence, space used for roads, driveways, ditches,
fence rows, office, machinery sheds, and the like are
not included. Production area averaged 11.1 acres
for all nurseries, 28.5 acres for largest nurseries, and
2.1 acres for the smallest nurseries (Table 1 and
Figure 3).

Labor full-time equivalent persons. The number
of full-time equivalent persons involved in the
nursery operation is obtained by dividing total labor
hours, including the time of salaried non-hourly
workers and managers, by the number of hours in a
normal working year (40 hours per week times 52
weeks per year equals 2,080 hours). Average
number of full-time equivalent persons involved for
all nurseries was 12.9; for the largest it was 28.4, and
for the smallest nurseries it was 4.6 (Table 1 and
Figure 4).

Capital: owned and managed. Capital owned is
the current value (original cost less depreciation
taken) of capital assets in the nursery operation.
This includes plants in inventory as well as land,

buildings, equipment, accounts receivable, and cash
or bank-book balance. Capital owned averaged
$907,529 for all nurseries, $2.063 million for the
largest firms, and $309,397 for the smallest. Related
debt is not deducted in this determination of the
value of capital owned.

Capital managed is the value of capital owned
plus the value of additional capital items used and
under the control of the manager, such as leased
property. Capital managed averaged $978,696 for all
nurseries, $2.200 million for the largest nurseries,
and $329,013 for the smallest nurseries (Table 1 and
Figure 5).

Figure 2
Monthly Sales
42 Woody Orn, Container Nurseries, 1988

Dollars CThousands)
100

80 -

o Largest third
All Nurserles
40 ._ -- Smallest third

20 -

Jan Fe Mar Apr ty Jun Jul Aug ep Oct Nv Dec
Month

Container Nurseries 5

Figure 3

Land: Growing Area

42 Woody Orn. Container Nurseries, 1988

Acres
30

10 ----------- .....................................................................
20

15

0
All Nurseries Largest Third Smallest Third

Figure 4

Labor: Number of Persons

42 Woody Orn. Container Nurseries, 1988

Full-time Equiv. Persons C2080 nrs/yr)
30

25 -

20 -

15 -. .

10 M

0

All Nurseries

Largest Third

Smallest Third

Container Nurseries

Figure 5

Capital Managed
42 Woody Orn, Container Nurseries, 1988

Do I lars (Mi I lons)

\, W:

All NLrserleS 1-81gest Tn ira Srh IIeSt Tnlira

M Capital Leased
M Capital Owneo

is owned plus leased.

of salable plants. In addition, nursery layout and
fertilizing and growing techniques can alter the time
and space used for the same crop in two different
nurseries. Also, markets and marketing programs
can alter the returns received by two different
nurseries for the same crop.

Plant inventory value per acre in production is
another indicator of efficiency in the use of land.
This averaged $58,376 for all nurseries, $52,606 for
largest nurseies, and $101,257 for the smallest
nurseries, or nearly double the average of all
nurseries. For ongoing operations, low plant
inventory values per acre imply either inefficient use
of land or unwise selection of crops grown in terms
of the relationship between their price and growing
area requirements.

Capital managed

Productivity Indicators

Land Use (Appendix Table 2)
The traditional indicator of efficiency in the use
of land is value of production per square foot or per
acre of growing area. Value of production is annual
sales of own plants adjusted for change in the value
of plant inventory. Average rates of production per
square foot were $.88 for all nurseries, $.76 for the
largest firms, and $1.03 for the smallest (Figure 6).
In terms of rate of production per acre, these figures
translate into $38,305 per acre for all nurseries,
$33,071 per acre for the largest nurseries, and
$44,889 per acre for smallest (Figure 6). Highest
annual rates of production were $1.96 per square
foot, while the lowest rates averaged $.55 per square
foot.

In general, increasing sales per square foot of
production area should increase the profitability of
a nursery operation, however, this does not assure
high profitability. Lower sales per square foot of
growing area can result from a number of things:
plants remaining after reaching salable size, high
amount of vacant space, slow-growing plant varieties,
and disease and quality problems that reduce yields

2.50

2.00

1 50 .......... ...-........-....

1.00

0.50

0.00

Container Nurseries

Labor Use (Appendix Table 3)
Value of production per full-time equivalent
person (2080 hrs/year) is a valuable measure of
efficiency in the use of labor. This indicator was
relatively constant, averaging $32,836 per person for
all nurseries, $33,201 for the largest firms, and
$21,015 for the smallest (Figure 7). Highest rates of
production per person averaged $45,995, and lowest
rates were $19,067 (Figure 7).

If all other things are equal, higher sales per
person is desirable. Higher sales per person when
viewed alone might seem to indicate true efficiency,
but when viewed together with other indicators, it
might instead show a less than optimum number of
employees for volume of plants being handled or
space being tended. This could result in tardy or
untimely plant care, hence, slower growth and/or
lower quality plus a failure to restock empty space
promptly. In this case, other indicators such as
production rate, space use intensity, capital turnover,
and costs per square foot would not support the
labor efficiency indicator. Lower sales per person
can result during periods of rapid expansion when
extra help is needed to care for a larger numbers of
plants before they reach salable size. Lower sales
per person can also result during difficult economic

times when sales are slow, but plant care must
continue. Variations among nurseries can be the
result of differences in investment in labor saving
capital items, differences in any of the factors noted
above that lower production rate, or poor
management practices in the utilization of labor.

An indicator of intensity in the use of labor is
production area per person. Production area
averaged .86 acre per full-time equivalent person for
all nurseries, 1.00 acre for the largest firms, and .47
acres for the smallest. Stated another way, the
number of persons per acre averaged 1.2 for all
nurseries, 1.0 for the largest nurseries, and 2.1 for
the smallest nurseries.

Figure 6

Land Use: Value of Production/Sq. Ft.
42 Woody Orn. Container Nurseries, 1988

Dol lars/Sq.Ft.
2.50

2 O 0 .......I ..................... ..................... ...................... .................... .........

1 .50 .............................................................................................................
-- Hignest Rates
Lowest Rates

0.00

All Nurseries Largest I lest

All Nurseries Largest

Sne I lest

Container Nurseries

Capital Use (Appendix Table 4)
Capital turnover. Annual turnover of owned
capital value is the percentage that results from
dividing the value of own plants sold by the value of
capital owned. Annual capital turnover for all
nurseries averaged 42.1 percent, for the largest
nurseries 41.4 percent, and for smallest 24.1 percent
(Figure 8). This means that for the average of all
nurseries, annual sales were less than half of the
capital investment, and for the smallest nurseries,
sales were about one quarter of capital investment.
Highest turnover rates averaged 73.2 percent while
the lowest rates were 24.1 percent (Figure 8).

In general, larger percentage turnover numbers
are desirable, for they indicate greater sales per
dollar of investment in the nursery. However, the
turnover rate is affected by any of the items already
mentioned that lower production rate hence sales
volume for a given nursery investment. Low capital
turnover is particularly common in nurseries just
getting started, or in nurseries that are expanding
rapidly. Excessive investments in land, labor saving
machinery and equipment, also tend to lower captial
turnover rate.

Capital managed per person. Capital owned plus
the value of capital items leased make up the total
capital managed in a nursery. Capital managed per
full-time equivalent person averaged $75,795 for all
nurseries, $77,548 for the largest nurseries, and
$72,219 for the smallest nurseries (Figure 9). There
were substantial variations among nurseries on this
measure. Highest rates for capital managed per
person averaged $122,510, while the lowest rates
were $37,046 (Figure 9).

Capital managed per acre. Capital managed per
acre of growing area averaged $88,419 per acre for
all nurseries, $77,244 for the largest firms, and
$154,262 for the smallest (Figure 10). Thus, the
average investment per acre for the smallest
nurseries was nearly twice as high as the average for
all nurseries. Highest rates averaged $198,867 per
acre, and the lowest rates were $54,234 per acre
(Figure 10).

Figure 7

Labor Use: Value of Production/Person
42 Woody Orn. Container Nurseries, 1987

Dollars (thousands)/Ful -Time Equivalent
50

340 ........................................................................
40 ---

30-------
-4- Highest Rates
Lowest Rates
20 ----

0

All Nrserles Largest m I lest

2080 hrs./full time equivalent

Container Nurseries

Figure 8

Capital Turnover

42 Woody Orn. Container Nurseries, 1988

Sales as a Percentage of Capital Owned
80%

60% ......... .. .... ................... ...................... ........... ..

I- Highest Rates
4 0% ......................... ........................................................w
-- Lowest Rates

2 0 % --. . - - - - . .

0%
Al I NLrseries Largest Inl lest

Figure 9

Capital Managed Per Person

42 Woody Orn. Container Nurseries, 1988

Dollars/Ful l-Time Equivalent Person

140000

120000

100000

B0000

60000

40000

20000

0000

........ .. .................................... ................... .................. .. .......

0 ........... ..... ......

- Highest Rates
Lowest Rates

All NurseriesLargest Sl lest
Al Nl ser lesLargest SnaIlest

..... .

........................

Container Nurseries

Figure 10

Capital Managed Per Acre

42 Woody Orn. Container Nurseries, 1988

Dollars Per Acre CThousands)
250

200 ....... .......

150 ......................................................................... Higr.st Rate.
150 - ---
Highest Rates
Lowest Rates
100 --

50 ---- I ..

0
All Nurseries Largest Srm I lest

Figure 11

Distribution of Managed Capital
42 Woody Orn. Container Nurseries, 1988

Accounts Rec.

Machinery/Equip.
Land 4.7
15.3%

includes capital owned
plus capital leased

Container Nurseries

Distribution of managed capital. The distribution
of the capital investment among land, buildings,
equipment, etc. is an important area of concern in
management. Figure 11 indicates the percentage
distribution of total capital managed for the average
of all container nurseries in 1988. Growing plants in
inventory represented the largest share of capital
managed, 66.0 percent. Next in importance was land,
15.3 percent. Other areas of capital investment were
machinery and equipment (4.7 percent), buildings and
installations (6.0 percent), supplies (3.0 percent),
accounts receivable (4.2 percent), and cash on hand
(0.8 percent).

Costs of Production
Cost categories as itemized in Appendix Table 5
and summarized in Table 2 below are considered to
be a minimal breakdown for the costs of production
in a container nursery. As can be seen, costs of
production as used in this report, include not only
cash outlays but also non-cash costs and allowances
that must be covered over time if a business is to
remain viable. This includes a non-cash allowance
for a minimum return on investment. The rate used
in this report is 12 percent.

Costs by Expense Category (Appendix Table 5).
Costs by expense category were summarized from
the annual profit and loss statement or tax records
of the participating nurseries. The cost categories
were grouped into wages and salaries, production
supplies, other production costs, administrative and
overhead, and non-cash costs. These figures provide
benchmarks for the relative magnitude of various
cost items, and may provide guidance for persons
evaluating a Florida container nursery.

Salaries and wages. The salary and wage average
includes the operator's salary or time value, and
employees wages, salaries, benefits, and other payroll
costs. As described on page 2, in some cases the
operator's salary was zero or was not appropriate, so
a time-value was estimated based upon the operator's
previous experience or alternative earning
possibilities The operator's salary or time value
averaged $39,381 for all nurseries, $70,815 for the
largest nurseries, and $16,744 for the smallest
nurseries. Wages, salaries, and associated expenses
for employees averaged $146,904 for all nurseries,
$352,014 for the largest, and $29,157 for the smallest.

Thus, total expenses on wages and salaries averaged
$186,285 for all nurseries, $422,829 for the largest,
and $45,900 for the smallest nurseries (Table 2).

Production supplies. Expenses in this average
include plants and seeds, containers, peat and soil,
fertilizer and lime, pesticides and chemicals, and
other production supplies. Expenses for supplies for
all nurseries averaged $107,926, for the largest
nurseries $239,282, and for smallest nurseries
$28,159.

Other production costs. Other production costs
are facility repairs/maintenance and equipment
operating costs. For all nurseries they averaged
$24,544, for the largest nurseries $55,636, and for the
smallest $4,637.

Administrative and overhead. Administrative and
overhead expenses usually cannot be assigned to any
particular crop or growing activity, yet must be
covered in order to remain in business. These
expenses include travel/trade shows, insurance,
telephone, electric power, advertising, rent, and other
cash expenses. Administrative and overhead
expenses averaged $49,250 for all nurseries, $107,221
for the largest, and $13,997 for the smallest.

Total cash costs. Total cash costs, including all
items mentioned above, averaged $368,004 for all
nurseries, $824,968 for the largest, and $92,693 for
the smallest nurseries.

Non-cash costs. Non-cash costs include
depreciation allowances on capital assets, decreases
in supply inventory (using supplies purchased during
a previous time period), and an interest charge for
the use of the capital invested in the nursery. These
costs averaged $133,998 for all nurseries, $305,249
for the largest, and $42,514 for the smallest firms.

Total all costs. Total costs averaged $502,002 for
all nurseries, $1,130,217 for the largest, and $135,207
for the smallest nurseries.

P

Container Nurseries

Table 2--Costs of Production: 42 Woody Ornamental Container Nurseries in Florida, 1988.

Alt Largest Smaltest
Nurseries Third Third
...................... .................................................................................

LABOR TOTAL . . . . .

$186,285 37.1% $422,829 37.4X $45,900 33.9%

SUPPLIES TOTAL. . . . . .. $107,926 21.5% $239,282 21.2% $28,159 20.8%

OTHER PRODUCTION COSTS TOTAL . . .... $24,544 4.9%

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .
TOTAL CASH COSTS . . . .
TOTAL NON-CASH COSTS . . .

TOTAL ALL COSTS . . . .

Distribution
42 Woody Orn.

$55,636 4.9% 54,637 3.4%

. $49,250 9.8X $107,221 9.5% $13,997 10.4%
KSz==IIZIZS7eX BZ= ISX==5=:SSZ=SB =S= IS==S=========
. $368,004 73.3% $824,968 73.0% $92,693 68.6%
. $133,998 26.7% $305,249 27.0% $42,514 31.4%
S $z502,002 100 $1,130,217 100== $135,207 100
502,002 100% $1,130,217 100% $135,207 100%

Figure 12

of Costs of Production
Container Nurseries, 1988

Labor
37%

Supp I i es
21%

Costs as a Percent of the Total Cost (Appendix
Table 6).
Costs in terms of percentage of the total are
useful for comparing the distribution of expenses
among nurseries differing in size. These are
obtained by dividing each of the dollar expense items
in Appendix Table 5 by the corresponding "Total all

Non-Cash Costs
27%

Admin,/Over head
10%

Other Prod. Costs
5%

costs" figure at the bottom of that table. Distribution
of costs of production by category are shown
graphically for the average of all participants in
Figure 12.

Salaries and wages. Salaries and wages (includes
operator) were the largest category of costs,
averaging 37.1 percent of total costs for all nurseries,

Container Nurseries

37.4 percent for the largest, and 33.9 percent for the
smallest nurseries (Table 2). The smallest container
nurseries reported a significantly higher percentage
of costs in operator salaries (12.4 percent) than the
industry average (7.8 percent), but a lower
percentage in employees wages and salaries (21.6
percent vs. 29.3 percent). Employees wages and
salaries were highest for the largest nurseries (31.1
percent).

Production supplies. Expenses on production
supplies ("plants and seeds" through "other
production supplies") also fluctuated considerably
among nurseries. Average costs for all nurseries
were 21.5 percent of total costs, for the largest
nurseries 21.2 percent, and for the smallest nurseries
20.8 percent. The greatest share of expenses for
this category was "plants and seeds" (6.9 percent).
Expenses on soil mix/growing media were next
highest (4.3 percent).

Other production costs. Other production costs
("facility repairs" and "equipment operation")
averaged 4.9 percent for all nurseries and largest
nurseries, and 3.4 percent for the smallest nurseries.

Administrative and overhead. Overhead costs
("travel" through "other cash expense") averaged 9.8
percent of total costs for all nurseries, 9.5 percent
for the largest, and 10.4 percent for the smallest.
Thus, there is some slight indication of economy of
scale for these overhead expenses.

Total cash costs. Total cash costs as a percent of
all costs for container nurseries were very close for
the average of all nurseries and the largest nurseries
(73.3 percent and 73.0 percent). The smallest
container nurseries averaged 68.6 percent.

Non-cash costs. Non-cash costs ("depreciation"
through "interest on capital") averaged 26.7 percent
of total costs for all nurseries, 27.0 percent for the
largest, and 31.4 percent for the smallest. Thus, the
lower percentage cash costs for the smallest nurseries
were complemented by their higher percentage non-
cash costs. The greatest share of differences in non-
cash costs were due to interest on capital: 21.8
percent for all nurseries, 21.9 percent for largest, and
28.0 percent for the smallest. Depreciation on
equipment, buildings, and other property
improvements were 4.9, 4.9 and 3.4 percent of total
costs, respectively.

Cost Efficiency
Costs per square foot of growing area are an
important indicator for comparing growing cost in
relation to the physical area of production. Similarly,
costs per dollar value of production allows
comparison of growing costs to product revenue.

Costs Per Square Foot of Growing Area (Appendix
Table 7).
These figures were obtained by dividing each of
the dollar cost figures in Appendix Table 5 by the
area in production shown in Appendix Table 1. This
is growing area only, not including, drives, roadways,
ditches, etc. Cash costs per square foot (excluding
depreciation, interest, etc.) averaged $.76 for all
nurseries, $.66 for the largest, and $1.00 for the
smallest nurseries. Total costs per square foot of
growing area averaged $1.04 for all nurseries, $.91
for the largest, and $1.46 for the smallest (Figure
13). Highest cost rates averaged $2.18 per square
foot, and the lowest cost rates were $.79.

Other things being equal, a lower cost per square
foot is desirable. Problems that cause costs per
square foot to increase include inefficient labor
management, insufficient investment in labor saving
capital items, destruction or theft of supplies and
plants, and poor purchasing practices. Other causes
of increased costs may not be a problem if they
result in increased revenue.

Costs Per Dollar's Worth of Production (Append.
Table 8).
Costs per dollar value of production (sales
adjusted for changes in plant inventory value) is a
direct measure of long-term profitability. This is
calculated by dividing the dollar costs (Appendix
Table 5) by the value of own plants sold adjusted for
change in plant inventory value (Table 1, and
Appendix Table 1). So, a $1.00 cost per dollar value
of production represents the breakeven cost level.
Total costs per dollar value of production for all
container nurseries averaged $1.18, for the largest
nurseries its was $1.20, and for the smallest nurseries
$1.41 (Figure 14).

Container Nurseries

Figure 13

Costs Per Square Foot of Growing Area

42 Woody Orn. Container Nurseries, 1988

Do lars/Sq.Ft.
2.50
Highest Rates

0Lowest Rates
2 .00 ...........................................................................................................- Lowest Rates
Non-cash Costs

1 .50 ............................................................................................................. M Cash Costs

1.50 ------------------- .......... C..... .ash Costs

0.50

0.00
All MNrseriesLargest SmaIlest

Figure 14

Costs Per Dol lar 's Worth of Production

42 Woody Orn. Container Nurseries, 1988

DoI lars/DolI lar

2,00

1.50

p. . I ............

1.00 ....
Break lveir

0.50 -.....

0.00

AlI NurseriesLargest Smllest

-H Highest Rates
I-- Lowest Rates

Non-Cash Costs

Cash Costs

Container Nurseries

Thus, average total costs for all nurseries were 18
percent above the breakeven level. Highest cost firms
averaged $1.77 per dollar value of production, while
the lowest cost firms achieved an average of $.87
(Figure 14). The deficit in costs per dollar value of
production for the industry average does not actually
represent a "loss" in this case, but merely a failure to
meet the 12 percent non-cash allowance for interest
on capital, as will be seen later in the section
"Income Summary".

Cash Costs Per Dollar of Sales (Appendix Table
9).
While total business position is indicated by costs
per dollar of sales adjusted for changes in inventory
value, ability to meet current liabilities depends upon
costs relative to cash received. These figures were
developed by dividing the dollar costs shown in Table
2 (or Appendix Table 5) by the value of own plants
sold from Table 1. Average cash costs per dollar of
sales was $.96 for all nurseries, $.97 for the largest
nurseries, and $1.24 for the smallest (Figure 15).
These results indicate a rather serious problem for
the smallest nurseries as their current operating
expenses were 24 cents per dollar higher than sales.
Highest cost firms averaged $1.25 per dollar of sales,
and the lowest cost firms had cash costs of 81 cents
per dollar of sales (Figure 15).

In general, lower costs per dollar of sales are
desirable. Rising costs per dollar of sales are very
common during periods of rapid expansion, because
extra costs of a larger operation are incurred before
the nursery can experience accompanying extra sales.
During inflationary times, failure to get price
increases as fast as costs are going up will also cause
higher costs per dollar of sales.

Income Summary
This section, based on Appendix Table 10,
concentrates on developing net nursery income and
allocating it between the owner-operator and a
return on the investment in the operation. It is for
a payment on his or her time that a nursery
operator works, and it is for a return to capital that
nursery operators and lending institutions invest
funds in nursery operations. Figure 16 shows the
components of income summarized, and Table 3
arrays the data used for the figure.

Total Gain
Total gain refers to the total value produced by
the year's operations: the sum of plant sales, changes
in plant and supply inventory values, and
miscellaneous income. Sales and plant inventory
change were given in the section "Sales and Total
Value of Production". Increases in inventories of
supplies averaged $734 for all nurseries, zero for the
largest firms, and $1,878 for the smallest nurseries.
Miscellaneous income refers to income received from
sources other than plant sales, including rent, interest
on accounts, delivery or packaging charges, and sales
of supplies. This averaged $5,880 for all nurseries,
$15,106 for the largest, and $1,678 for the smallest
firms. Total gain averaged $430,611 for all nurseries,
$957,043 for the largest nurseries, and $99,295 for
the smallest.

Cost Deductions and Net Nursery Income
Total costs except the operator's salary and
allowance for interest on capital are deducted from
total gain to give net nursery income. Total
deductions averaged $353,026 for all nurseries,
$811,893 for the largest firms, and $80,574 for the
smallest. Net nursery income is the total return for
the year for the time and managerial skills of the
operator plus the capital invested in the operation.
Average net nursery income was $77,585 for all
nurseries, $145,150 for the largest, and $18,721 for
the smallest nurseries.

Container Nurseries

Figure 15

Cash Costs Per Dollar of Sales

42 Woody Orn. Container Nurseries, 1988

Do I lars/Do I ar

- Highest Rates

-*- Lowest Rates

Figure 16

Distribution of Total Gain

42 Woody Orn, Container Nurseries, 1988

Dollars CThousandsD

1000

Goo [ ...................................

600 ...................................

SRetLrn to Capital

SReturn to Operator

Expenses

Al I NLrseries Largest ~T~l lest

1.4U

1.20

1.00

0.80

0.60

0.40

0.20

0.00

All NII series Larggst Sma I Ioqt

_....-..........;T...........?.....

sffe i i est

J

.........................

...........

............. ...........

............. ...........

.........................

All Nurser ies Largest

Container Nurseries

Table 3--Income Summary: 42 Woody Ornamental Container Nurseries in Florida, 1988.

ATI Largest SmaLLest
unit Nurseries Third Third

TOTAL GAIN ................. $ 430,611 957,043 99,295

Total Deductions . . . .. S (353,026) (811,893) (80,574)
fil :==----------------=====-==
NET NURSERY INCOME . . .... 77,585 145,150 18,721
Operator's salary or time value ..... $ 39,381 70,815 16,744
2= = =2IIIIS=r : I===-I
RETURN TO CAPITAL. . . ... 38,204 74,334 1,977
*-Percent. . . . ... X 4.21 3.60 0.64

Figure 17

Return to Capital
42 Woody Orn. Container Nurseries, 1988

Percent Return to Capital Owned

0%

5%

-10%

.......................................A ................. .. ..................

----** -

All Nurser ies Largest Sm llost

Return to Capital
From net nursery income is subtracted the salary
or time value of the owner-operator to obtain that
part of net nursery income attributable to capital.
This is the earnings of the investment in the nursery.
When the owner and operator are the same person,
dividing net nursery income between the operator
and return to capital may not seem important.
However, when the owners are outside investors,
accurate division is important. Average operator
salaries were given in the previous section "Costs by
Expense Category." Return to capital averaged
$38,204 for all nurseries, $74,334 for the largest
nurseries, and $1,977 for the smallest firms.

-- Highest Rates
- Lowest Rates

Dividing net nursery income by the value of capital
invested gives the rate of return on the investment.
Rate of return is a very commonly used indicator for
evaluating an investment or for selecting between
investment alternatives. For example, this may be
compared to the widely quoted yields for capital
market instruments such as certificates of deposit,
treasury notes, bonds, etc., which are reported on an
annualized basis unless otherwise noted. Average
value of capital invested for these groups was given
in Table 1. Figure 17 shows that average rate of
return on capital was 4.2 percent for all nurseries,
3.6 percent for the largest nurseries, and 0.6 percent
for smallest. Thus, for every dollar invested, there

Container Nurseries

was an average return of 4.2 cents. The deficit of 18
points in costs per dollar value of production for all
nurseries, as discussed above, was not a loss, but
simply a return on investment somewhat less than
the 12 percent allowance. Highest rates of return
averaged 24.2 percent, and lowest rates were minus
7.9 percent (Figure 17).

Statement of Financial Position
The statement of financial position (Appendix
Table 11) summarizes the assets and liabilities of
container nurseries. These data represent the
mid-year financial situation of the nurseries, derived
as an average of year-beginning and year-end balance
sheet figures. Figure 18 illustrates the major
components of the statement of financial position.

Assets
Current assets represent cash, or items deemed
convertible to cash within one year's time: cash on
hand, accounts receivable, and inventory values.

Cash on hand includes funds in checking
accounts, savings accounts, and money market funds.
Average cash on hand was $7,843 for all nurseries,
$11,729 for the largest nurseries, and $2,808 for the
smallest firms. The main function of cash on hand
is to pay for current liabilities. As a percentage of
total cash costs, these current liabilities represented
30 percent, 19 percent, and 65 percent, respectivley.

Accounts receivable are uncollected payments due
from all sources. The majority of these are trade
accounts for plants sold. Generally, this figure
should be minimized because uncollected funds
deprive the firm of their use. Accounts receivable
averaged $41,128 for all nurseries, $102,134 for the
largest, and $3,749 for the smallest firms. As a
percentage of annual sales, these amounts
represented 11 percent, 12 percent, and 5 percent,
respectivley. So, the smallest nurseries were
considerably better in collecting on account, or were
more averse to accepting sales on risky accounts.

Inventory values include growing plants and
supplies, which were presented previously in Table
1. The combined value of inventories averaged
$675,410 for all nurseries, $1,579,894 for the largest
firms, and $222,832 for the smallest nurseries.
Woody ornamental plants in container production

may not be considered a current asset to some
because much of the inventory normally would not
be sold for one or more years hence. However, the
inventory data collected were supposed to represent
the market value of the crops in their current state
of development, so plant inventory is reported as a
current asset.

Current assets averaged $724,382 for all nurseries,
$1,693,757 for the largest, and $229,389 for the
smallest nurseries.

Long Term Assets are investments in buildings,
machinery and land that normally would not be
converted to cash within a year. Current values of
investments are the original cost less accumulated
depreciation. Comparing original cost with the value
remaining after subtracting accumulated depreciation
provides a measure of the degree to which capital
assets have been depleted. Original investments
averaged $316,568 for all nurseries, $689,031 for the
largest, and $103,971 for the smallest nurseries.
Subtracting accumulated depreciation left a current
value of $183,148 for all nurseries, $368,810 for the
largest, and $80,008 for the smallest nurseries. As a
percentage of the original investment, these current
values represent 58 percent, 54 percent, and 77
percent, respectively. Thus, the smallest nurseries
had the least depleted long term assets.

Total assets are the sum of short term and long
term assets gives average total assets of $907,529 for
all nurseries, $2,062,566 for the largest, and $309,397
for the smallest nurseries. These amounts are the
same as reported for "total owned capital" in Table
1 and Appendix Table 1.

Uabllltles
Liabilities may be "current" (payable during
the current year) or "long term" (payable at some
time after the current year).

Container Nurseries

Figure 18

Assets and Liabilities
42 Woody Orn, Container Nurseries, 1988

2500

Do llars (Thousands)
.

2000 ---......--.......-----

1500-----------

1000 -. .-.-

o50o

.-u-.......

SCLrent Assets
- Long Term Assets
rI I rent LIlabIlltS
SLong Term Llabi I.
Net Worth

All Nurseries

Current liabilities averaged $26,369 for all
nurseries, $62,976 for the largest, and $4,335 for the
smallest firms. The ratio of cash and accounts
receivable to current liabilities, known as the "quick
ratio", is a standard indicator of liquidity, the ability
to pay current operating expenses. The quick ratio
averaged 1.86 for all nurseries, 1.81 for the largest
firms, and 1.51 for the smallest nurseries. The
middle third of nurseries were enough more liquid
than the rest to raise the all-nursery average above
both the largest and smallest thirds. The smallest
nurseries may have somewhat less liquidity than is
desirable, but still should be able to to meet current
obligations.

Long term liabilities include notes payable and
mortgages. They averaged $120,949 for all nurseries,
$215,042 for the largest, and $55,667 for the smallest
nurseries. The ratio of current liabilities to long
term liabilities was .22 for all firms, .29 for largest,
and .08 for the smallest firms.

Total liabilities. The sum of current and long-
term liabilities gives average total liabilities of
$147,318 for all nurseries, $278,019 for the largest,
and $60,002 for the smallest firms. The ratio of total

assets to total liabilities was 6.2, 7.4, and 5.2,
respectively, which represents an extremely sound
financial position in all cases.

Net Worth
Net worth is the difference between total assets
and total liabilities. This is the actual value of the
owner's share of the assets, as opposed to the
lenders'claims. The average net worth for all
container nurseries was $760,212, for the largest it
was $1,784,548, and for the smallest $249,395.

Total Profitability Model
The Total Profitability Model combines
information from the operating statement and
statement of financial position in a graphical
presentation to illustrate how assets, liabilities, and
profit margin work together to yield the firm's return
on net worth. Figure 19 shows the three sections of
the profitability model: margin management, asset
management and leverage management. Data for all
nurseries, largest nurseries, and smallest nurseries
are given in the top, middle, and bottom of each cell
in the model, respectively. Data for the industry

Largest

SmaI Iest

Container Nurseries

average (top figure in each box) will be discussed
here to clarify the calculations.

Margin Management
From total gain ($430,611) is subtracted total
deductions ($353,026) and the operator's salary
($39,381) to give return to capital ($38,204). This is
divided by total gain to yield an average net profit
margin of 8.9 percent.

Asset Management
Current assets ($724,383) plus long term assets
($183,148) make total assets of $907,529. This is
divided into total gain ($430,611) to give an asset
turnover rate of 0.47. Asset turnover multiplied by
net profit margin (8.9 percent) results in an average
return to capital of 4.2 percent.

Leverage Management
Current liabilities ($26,369) plus long term
liabilities ($120,949) gives average total liabilities of
$147,318. This is subtracted from total assets to
yield average net worth of $760,212. Total liabilities
plus net worth ($907,529) divided by net worth gives
a leverage factor of 1.19. This is the ratio of total
assets under one's control to net worth. In other
words, earnings on the total capital involved in the
nursery belong to the owner and represent earnings
on the owner's net investment in the nursery, his net
worth. Hence, a leverage of 1.19 means that every
dollar of net worth in the nursery is earning at the
rate of 1.19 times the earnings of the total
investment. Therefore, leverage times rate of return
to capital (4.2 percent) gives a return on net worth
of 5.0 percent.

CONCLUDING COMMENTS
Nursery operators who are interested in seeing
how they compare with those participating in the
Florida Nursery Business Analysis Program may
calculate their own numbers by following the
instructions in the Appendix under "Making Your
Own Calculations". This analysis should improve
management decisions concerning things that affect
the profitability of the nursery operation.

Nursery operators who find this kind of
information useful, but have difficulty finding the
time to do their own calculation may wish to

consider becoming a participant in the Florida
Nursery Business Analysis Program. We especially
need more participants in the Container Nursery
program to provide sounder and statistically more
reliable averages. If you would like to become a
participant, contact your ornamental agent in your
county Extension office, or contact the authors in
Gainesville. Nursery operators who authorize a
commercial accounting firm to supply the data
required for the program can participate with a
minimum of effort on their part.

Container Nurseries

Figure 19 -- Total Profitability Model: 42 Woody Ornamental Container Nurseries in Florida, 1988.

= = = U ==

---Margin Management--------------------- ---------------
total gain
i -i net profit

total costs / *** 7.77% **
Less interest total gain 1.99 *
0
$392,407 $430,611 *
$882,709 ** $957,043 ** *
$97,317 $99,295

---Asset Management------------------------------------------ X *
cash total gain ***
*
$7,843 current $430,611
$11,729 ** assets $957,043 **
$2,808 99,295 **
724,382 asset
+ ** $1,693,757 ** turnover
accts. rec. $229,389 *
/ 0.474
$41,128 *** 0.464 ***
$102,134 ** 0.321
$3,749 total assets

$907,529 *
plant inven. + ** $2,062,566 **
$309,397
5646,158 *
$1,498,326 *** long-term *
$215,963 assets

+ $183,148 *
supply inven $368,810 **
$80,008
$29,252 *
$81,568 ***
$6,869

-Leverage Management------------------ ----- --------- --------------------
liability plus
current liab. total Liab. net worth

Key

42 Nursery Avg
Largest Third
Smallest Third

Rate of
return

4.21%
3.60X ***
0.64X% *

RETURN ON
NET WORTH
*
5.03
X ** 4.17
0.79
*

leverage *
factor *
*
40R O

U = ~ =~t D P I II = I II I IL =

Container Nurseries

m
14

:%vot,

jp9

!W-SA:
h A -,
IMP

lbk

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-Ir
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4A6 V

W pf'w
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f -, %A

14: jA.
0'-w-

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I PA.4r-- Ae"
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I tt

14

so"

Container Nurseries

APPENDIX

Appendix Table of Contents
page
Definitions ..... .................... ..... ... ....... ........................ 24
M making your own calculations ................................................... 24
Appendix Tables .... .... ................................................ .... 26

List of Appendix Data Tables

Appendix Table Page

1 Size of business, 42 woody ornamental container nurseries in Florida, 1988 ................ 26
2 Land use indicators, 42 woody ornamental container nurseries in Florida, 1988 .............. 27
3 Labor use indicators, 42 woody ornamental container nurseries in Florida, 1988 ............ 27
4 Capital use indicators, 42 woody ornamental container nurseries in Florida, 1988 ............ 28
5 Costs by expense category, 42 woody ornamental container nurseries in Florida, 1988 ......... 29
6 Percent of total costs by expense category, 42 woody ornamental container nurseries in Florida, 1988 30
7 Costs per acre of production area, 42 woody ornamental container nurseries in Florida, 1988 .... 31
8 Costs per dollar's worth of production, 42 woody ornamental container nurseries in Florida, 1988 32
9 Cost per dollar's worth of sales (no adjustment for change in plant inventory),
42 woody ornamental container nurseries in Florida, 1988 ......................... ..33
10 Income summary, 42 woody ornamental container nurseries in Florida, 1988 ................ 34
11 Statement of Financial Position, 42 woody ornamental container nurseries in Florida, 1988 ...... 34
12 Financial Ratios and other Profitability Indicators, 42 woody ornamental container nurseries
in Florida, 1988 ........................... ............................ 35

Container Nurseries

DEFINITIONS
Value of own plants sold: the value of total plant
sales minus the cost of plants purchased for
immediate resale. The cost of plants purchased for
growing-on are not deducted.

Full-time equivalent employee: the equivalent of
one person working 40 hours a week for 52 weeks
a year (2080 hours a year). The most common
method for obtaining the number of full-time
persons for this report was to divide the total annual
payroll hours for the nursery by 2080, then add the
number of family and management people not paid
on an hourly basis.

Capital owned: the current value (cost less
depreciation taken in prior years) of capital assets, or
current investment in the nursery operation. Related
debt is not deducted in this determination of the
value of capital owned.

Capital managed: the value of capital owned plus
the value of additional capital items used and under
the control of the manager. Rented land and leased
buildings, equipment, etc., would be added to the
value of capital owned to obtain the value of capital
managed in the nursery operation.

Annual turnover of capital: the percentage that
results from dividing the value of own plants sold by
the value of capital (either owned or managed). It
is annual plant sales stated in terms of percent of
the capital involved.

Total gain: the sum of plant sales, changes in
plant and supply inventories, and miscellaneous cash
income. It represents the total effect of the year's
operation, be it in the form of cash received of in
the form of change in values of inventories.

Net nursery income: the net effect of the year's
operation. To obtain it, all cash costs (except
operator's salary), and all non-cash costs (except the
12 percent non-cash interest allowance on capital)
are subtracted from total gain. The result is the
return for the time and managerial skills of the
operator, and for the use of the capital invested in
the operation.

Return to capital: the portion of net nursery
income that is left after subtracting the salary or

time value of the operator. It is what the owned
capital earned.

Rate of return on capital: return to capital divided
by the value of owned capital. It is the rate earned
on the capital invested.

MAKING YOUR OWN CALCULATIONS
Analysis of your own nursery for comparison with
these results in this report may be done manually
with the information for your operation in Appendix
Tables 1 and 5. Lines are provided for entry of your
data. Make calculations for your nursery on each
line of Appendix Tables 2, 3 and 4 using the
formulaes shown on each line. For example, the
first line of Appendix Table 2, "Value of own
plants sold per square foot" shows a formula in
parentheses of Table 1A/1D. The slash mark (/)
stands for division. The Table 1A stands for the A
line of Appendix Table 1, and 1D stands for the D
line.

Calculations starting with Appendix Table 6 and
continuing through Appendix Table 9 are similar.
These calculations are made by dividing each line of
Appendix Table 5 by the appropriate figure as
follows:

Appendix Table 6--divide by your total all costs
figure at the bottom of Appendix Table 5.

Appendix Table 7--divide by your square footage
figure on line D of Appendix Table 1.

Appendix Table 8,--ivide by your total value of
production figure on line B of Appendix Table 1.

Appendix Table 9--divide by your sales figure on
line A of Appendix Table 1

Container Nurseries

For Appendix Tables 10 and 11, formulas are not shown. However completion of your own data set for
those tables is needed in order for you to utilize the profitability model. Instructions for Appendix Table 10
are as follows:

Line A: Value of own plants sold
Line B: Change in plant inventory
Line C: Supply inventory increase
shown previously

value
. .

Appendix Table 1, line A
Appendix Table 1, line B
from your beginning and ending supply inventory data, not

Line D: Miscellaneous income ......... from your business records, not shown previously
* Line E: Total gain .................. sum of lines A, B, C and D.
Line F: Deduct cash costs ............. from Appendix Table 5 (subtract operators salary)
Line G: Deduct non-cash costs ......... from Appendix Table 5 (subtract interest on capital)
* Line H: Total deductions ............. sum lines F and G
Line I: Net nursery income ............ line E minus line H
* Line J: Deduct operator's salary ........ from line 1 of Table 5
* Line K: Return to capital ............. line I minus line J
* Line L: Rate of return to capital ........ line K divided by Appendix Table 1, line O

Instructions for Appendix Table 11 are as follows:

Line A: Cash on hand ...............
Line B: Accounts receivable ...........
Line C: Plant inventory ..............
Line D: Supply inventory .............
Line E: Total current assets ...........
Line F: Machinery & equipment ........
Line G: Buildings and fixtures ..........
Line H: Land .....................
(Skip lines I and J if lines F, G, and H are
depreciated values.)
Line K: Total long term assets .........
Line L: Total assets .................
Line M: Current liabilities ............
Line N: Long term liabilities ...........
Line 0: Total liabilities ..............
Line P: Net worth ..................

Appendix Table 1 line N
Appendix Table 1 line M
Appendix Table 1 line G
Appendix Table 1 line K
sum lines A,B,C and D
Appendix Table 1 line I
Appendix Table 1 line H
Appendix Table 1 line J
depreciated values. If not, use these two lines to get

sum lines F,G,H,I,& J
sum lines E and K
from your records, not shown in earlier tables
from your records, not shown in earlier tables
sum line M and N
line L minus line 0

* Line Q: Total liabilities and net worth .... sum lines O and P

This data required for the profitability model.

The business analysis may also be done with IFAS's MS-DOS compatible computer program,
WOODYNBA. Order program number 003, priced at $20 from:

IFAS Software Support Office
Building 120, Room 203
University of Florida
Gainesville, FL 32611

Container Nurseries

APPENDIX TABLES

Appendix Table 1--Size of Business: 42 Woody Ornamental Container Nurseries in Florida, 1988.

ALL
unit Nurseries
.......... ..... .............

A Value of own plants sold . ... .
8 Change in inventory value. . ... .

C Total value of production. . ... .

Total growing area . . .

381,829
42,167

423,997

.sq.ft. 482,161
acres 11.07

F Full-time equivalent persons . .number

...........- Capital Owned-------------
Growing plants . . .
BLdgs, improvements . .
Machinery & equipment . .
Land . . . .
Supply inventory . . .
Accounts receivable . .
Cash/checkbook balance . .

0 Total Owned Capital. . . ...

...........- Capital Leased-------------
P BLdgs, improvements. . . .. .
0 Machinery & equipment. . . ... .
R Land . . . . .. S

S Total Leased Capital . . .... .S

------------Capital Managed ....----------
T Growing plants . . .
U BLdgs, improvements . .
V Machinery & equipment . .
W Land . . . .
X Supply inventory . . .
Y Accounts receivable . .
Z Cash/checkbook balance . .

AA Total Capital Managed . .

12.91

646,158
53,066
44,042
86,039
29,252
41,128
7,843

907,529

5,810
1,607
63,750

71,167

$ 646,158
$ 58,876
.S 45,650
$ 149,789
S 29,252
S 41,128
S 7,843

. $ 978,696

Largest
Third

854,362
87,574

941,937

1,240,684
28.48

28.37

1,498,326
130,279
97,093
141,438
81,568
102,134
11,729

2,062,566

12,692
2,500
122,308

137,500

1,498,326
142,971
99,593
263,746
81,568
102,134
11,729
=2,200,0=66
2,200,066

Smallest Your
Third Nursery
74.. .. .. ...680.. .

74,680
21,059

95,739

92,905
2.13

4.56

215,963
14,042
10,666
55,301
6,869
3,749
2,808

309,397

0
0
19,615

19,615

215,963
14,042
10,666
74,916
6,869
3,749
2,808

329,013

Container Nurseries

Appendix Table 2--Space Use Indicators: 42 Woody Ornamental Container Nurseries in Florida, 1988.

Alt Largest Smallest Your
unit Nurseries Third Third Nursery
............................................................................................

Plants sales/sq.ft. growing area (Table 1A/1D) S 0.79 0.69 0.80
Production/sq.ft. growing area. .(Table IC/ID) S 0.88 0.76 1.03

Sales/acre of total nursery area.(Table 1A/IE) S 34,496 29,996 35,015
Value of production per acre. .(Table 1C/1E) S 38,305 33,071 44,889

Plant inventory value per acre. .(Table 1G/1E) S 58,376 52,606 101,257

Plant inventory turnover .(Table 1A/1G) X 59.09 57.02 34.58

Appendix Table 3--Labor Use Indicators: 42 Woody Ornamental Container Nurseries in Florida, 1988.

All Largest Smallest Your
unit Nurseries Third Third Nursery

Plant sales per person* .... .(Table 1A/1F) S 29,571 30,114 16,392
Value of production per person* .(Table 1C/1F) S 32,836 33,201 21,015

Growing area per person* .(Table 1D/1F) sq.ft. 37,341 43,731 20,393
Persons per acre growing area .(Table 1F/1E) number 1.17 1.00 2.14

Full-time equivalent person (2080 hrs/year)

Container Nurseries

Appendix Table 4--Capital Use Indicators: 42 Woody Ornamental Container Nurseries in Florida, 1988.

All
unit Nurseries

Owned capital turnover. (Table 1A/10) % 42.1
Managed capital turnover. (Table 1A/1AA) X 39.0

Capital owned/person* . (Table 10/1F) S
Capital managed/person* (Table 1AA/1F) S

Capital owned/acre ..... (Table 10/1E) $
Capital managed/acre ..... (Table 1AA/1E) S

---Managed Capital Per Person In---
Growing plants . ... (Table
Bldgs, improvements .. (Table
Machinery & equipment . (Table
Land . . ... (Table

---Managed Capital Per Acre In--
Growing plants . .
Bldgs, improvements . .
Machinery & equipment .
Land . . .

(Table
(Table
(Table
(Table

---Distribution of Managed Capital---
in growing plants . .(Table
in buildings & wells. .. (Table
in machinery & equipment. (Table
in land . . (Table
in supply inventory . .(Table
in accounts receivable. (Table
in cash/checkbook balance (Table

1T/1F)
1U/1F)
1V/1F)
1U/1F)

IT/1E)
1U/1E)
1V/1E)
1W/1E)

1T/1AA)
1U/1AA)
1V/1AA)
1W/1AA)
1X/1AA)
1Y/1AA)
1Z/1AA)

TOTAL. . . . . .

70,283
75,795

81,989
88,419

50,041
4,560
3,535
11,600

58,376
5,319
4,124
13,532

66.0
6.0
4.7
15.3
3.0
4.2
0.8

100.0

Largest
Third

41.4
38.8

72,701
77,548

72,416
77,244

52,813
5,039
3,510
9,296

52,606
5,020
3,497
9,260

68.1
6.5
4.5
12.0
3.7
4.6
0.5

100.0

Smallest
Third

24.1
22.7

Your
Nursery

67,913
72,219

145,066
154,262

47,404
3,082
2,341
16,444

101,257
6,584
5,001
35,125

65.6
4.3
3.2
22.8
2.1
1.1
0.9

100.0

* Full-time equivalent person (2080 hrs/year)

Container Nurseries

Appendix Table 5--Dollar Cost by Expense Category: 42 Woody Ornamental Container Nurseries in Florida, 1988.

All
unit Nurseries

Operator's salary . . .. S 39,381
Other wages . . . .. 146,904

LABOR TOTAL . . . ... $ 186,285

Plants & seeds. . . . .
Containers. . . . .
Peat & soil . . . .
Fertilizers & ime . . .
Pesticides & chemicals. . . .
Other production supplies . . .

SUPPLIES TOTAL. . . . .

Facility repairs. . . . .
Equipment operation . . .

OTHER PRODUCTION COSTS TOTAL . .

Travel. . .
Insurance . .
Telephone . .
Electricity .
Taxes & liscenses .
Advertising .
Rent-land/buildings
Other cash costs..

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .

TOTAL CASH COSTS . . . .

Depreciation-machinery/equipment . .
Depreciation-buildings/etc . .
Supply inventory decrease . . .
Interest on capital . . .

TOTAL NON-CASH COSTS . . .

TOTAL ALL COSTS . . . .

S 34,521
S 17,083
S 21,353
$ 12,684
$ 7,431
S 14,855

S 107,926

8,321
16,223

24,544

4,703
9,946
3,591
5,320
3,881
3,454
3,252
15,103

49,250

368,004

S 16,017
S 8,386
S 0
S 109,595

S 133,998

S 502,002

Largest
Third

70,815
352,014

422,829

68,862
37,419
48,574
28,812
15,762
39,853

239,282

16,783
38,853

55,636

10,512
22,468
7,899
12,345
7,797
6,616
6,084
33,500

107,221

824,968

38,185
17,314
2,242
247,508

305,249

1,130,217

Smallest Your
Third Nursery

16,744
29,157

45,900

12,186
4,082
4,439
2,898
2,089
2,465

28,159

1,611
3,026

4,637

1,205
2,619
985
1,472
926
1,890
1,754
3,147

13,997

92,693

2,706
1,918
0
37,889

42,514
1assz.aa==Z
135,207

30 Container Nurseries

Appendix Table 6--Percent of Total Costs by Expense Category: 42 Woody Ornamental Container Nurseries in Florida, 1988.

ALL Largest
unit Nurseries Third
...........8...........6.....3.......

Operator's salary . . ....
Other wages . . . .... .

LABOR TOTAL . . . .... .

Plants & seeds. . . . .
Containers . . . .
Peat & soil . . . .
Fertilizers & Lime . . .
Pesticides & chemicals . . .
Other production supplies . . .

SUPPLIES TOTAL . . . .

Facility repairs . . .
Equipment operation . . .

OTHER PRODUCTION COSTS TOTAL . .

K
K
K
K
K
K

K

K
K

K

Travel. . .
Insurance . .
Telephone . .
Electricity .
Taxes & Liscenses .
Advertising .
Rent-land/buildings
Other cash costs..

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .

TOTAL CASH COSTS . . ...... .

Depreciation-machinery/equipment. .... .
Depreciation-buildings/etc . %
Supply inventory decrease . ... ..
Interest on capital . . .... ..

TOTAL NON-CASH COSTS . . ...... .

TOTAL ALL COSTS . . .... .

7.8
29.3

37.1

6.9
3.4
4.3
2.5
1.5
3.0

21.5

1.7
3.2

4.9

0.9
2.0
0.7
1.1
0.8
0.7
0.6
3.0

9.8

73.3

3.2
1.7
0.0
21.8

26.7

100.0

6.3
31.1

37.4

6.1
3.3
4.3
2.5
1.4
3.5

21.2

1.5
3.4

4.9

0.9
2.0
0.7
1.1
0.7
0.6
0.5
3.0

9.5
I==========Z==
73.0

3.4
1.5
0.2
21.9

27.0
===100.0=
100.0

Smallest Your
Third Nursery

12.4
21.6

33.9

9.0
3.0
3.3
2.1
1.5
1.8

20.8

1.2
2.2

3.4

0.9
1.9
0.7
1.1
0.7
1.4
1.3
2.3

10.4

68.6

2.0
1.4
0.0
28.0

31.4

100.0

Container Nurseries 31

Appendix Table 7--Costs Per Square Foot of Growing Area: 42 Woody Ornamental Container Nurseries in Florida, 1988.

Alt
unit Nurseries

Operator's salary . . ... cents 8.17
Other wages . . . ... cents 30.47

LABOR TOTAL . . . .... cents 38.64

Largest Smallest
Third Third

5.71 18.02
28.37 31.38

34.08 49.41

Plants & seeds. . . . .
Containers . . . .
Peat & soil . . . .
Fertilizers & Lime . . .
Pesticides & chemicals. . . .
Other production supplies . .

SUPPLIES TOTAL . . .

cents 7.16
cents 3.54
cents 4.43
cents 2.63
cents 1.54
cents 3.08

cents 22.38

Facility repairs. . . ... cents
Equipment operation . . .. cents

OTHER PRODUCTION COSTS TOTAL . ... cents

Travel. . . . . .
Insurance . . . . .
Telephone . . . . .
Electricity . . . .
Taxes & Liscenses . . . .
Advertising . . . .
Rent-Land/buildings . . .
Other cash costs . . .

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .

TOTAL CASH COSTS . . .

Depreciation-machinery/equipment.
Depreciation-buildings/etc .
Supply inventory decrease .
Interest on capital . .

1.73
3.36

5.09

cents 0.98
cents 2.06
cents 0.74
cents 1.10
cents 0.80
cents 0.72
cents 0.67
cents 3.13

cents 10.21

cents 76.32

cents
cents
cents
cents

TOTAL NON-CASH COSTS . . ... cents

TOTAL ALL COSTS . . .... cents

3.32
1.74
0.00
22.73

27.79

104.12

Your
Nursery

5.55
3.02
3.92
2.32
1.27
3.21

19.29

1.35
3.13

4.48

0.85
1.81
0.64
1.00
0.63
0.53
0.49
2.70

8.64

66.49

3.08
1.40
0.18
19.95

24.60

91.10

13.12
4.39
4.78
3.12
2.25
2.65

30.31

1.73
3.26

4.99

1.30
2.82
1.06
1.58
1.00
2.03
1.89
3.39

15.07

99.77

2.91
2.06
0.00
40.78

45.76

145.53

32 Container Nurseries

Appendix Table 8--Cost Per Dollar's Worth of Production: 42 Woody Ornamental Container Nurseries in Florida, 1988.

Operator's salary . . ... .cents
Other wages . . . .... cents

LABOR TOTAL . . . .... cents

Plants & seeds . .
Containers . ... ..
Peat & soil . . .
Fertilizers & time . .
Pesticides & chemicals .
Other production supplies .

cents
cents
cents
cents
cents
cents

SUPPLIES TOTAL. . . . ... cents

Facility repairs. . . ... cents
Equipment operation . . ... cents

OTHER PRODUCTION COSTS TOTAL . ... cents

Travel . .
Insurance . .
Telephone . .
Electricity .
Taxes & licenses .
Advertising .
Rent-tand/buildings
Other cash costs..

. cents
. cents
. cents
. cents
. cents
. cents
. cents
. cents

ADMINISTRATIVE & OVERHEAD COSTS TOTAL cents

TOTAL CASH COSTS . . ... cents

Depreciation-machinery/equipment.
Depreciation-buildings/etc .
Supply inventory decrease .
Interest on capital . .

cents
cents
cents
cents

TOTAL NON-CASH COSTS . . .. cents

TOTAL ALL COSTS . . ... cents

ALL
unit Nurseries
.........................................

9.3
34.6

43.9

8.1
4.0
5.0
3.0
1.8
3.5

25.5

2.0
3.8

5.8

1.1
2.3
0.8
1.3
0.9
0.8
0.8
3.6

11.6
Z== ======
86.8

3.8
2.0
0.0
25.8

31.6

118.4

Your
Nursery
........-...

Largest
Third
.................
7.5
37.4

44.9

7.3
4.0
5.2
3.1
1.7
4.2

25.4

1.8
4.1

5.9

1.1
2.4
0.8
1.3
0.8
0.7
0.6
3.6

11.4

87.6

4.1
1.8
0.2
26.3

32.4

120.0

Smallest
Third
........-.....
17.5
30.5

47.9

12.7
4.3
4.6
3.0
2.2
2.6

29.4

1.7
3.2

4.8

1.3
2.7
1.0
1.5
1.0
2.0
1.8
3.3

14.6

96.8

2.8
2.0
0.0
39.6

44.4

141.2

Container Nurseries 33

Appendix Table 9--Cost Per Dollar's Worth of Sales: 42 Woody Ornamental Container Nurseries in Florida, 1988.

All
unit Nurseries
Operator.'s salary.......................cets 10.3

Operator's salary . . . cents
Other wages. .. . . .. cents

LABOR TOTAL . . . . cents

Plants & seeds . .
Containers . .
Peat & soil . .
Fertilizers & Lime .
Pesticides & chemicals..
Other production supplies

SUPPLIES TOTAL. . . . .

Facility repairs . . .
Equipment operation . . .

OTHER PRODUCTION COSTS TOTAL . .

Travel. . . . . .
Insurance . . . .
Telephone . . . .
Electricity . . . .
Taxes & Liscenses . . .
Advertising . . . .
Rent-land/buildings . . .
Other cash costs . . .

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .

TOTAL CASH COSTS . . .

Depreciation-machinery/equipment .
Depreciation-buildings/etc. . .
Supply inventory decrease . .
Interest on capital . . .

cents
cents
cents
cents
cents
cents

cents

cents
cents

cents

10.3
38.5

48.8

9.0
4.5
5.6
3.3
1.9
3.9

28.3

2.2
4.2

6.4

. cents 1.2
. cents 2.6
. cents 0.9
. cents 1.4
. cents 1.0
. cents 0.9
. cents 0.9
. cents 4.0

. cents 12.9

. cents 96.4

cents
cents
cents
cents

TOTAL NON-CASH COSTS . . ... cents

TOTAL ALL COSTS . . ... cents

4.2
2.2
0.0
28.7

35.1

131.5

Largest
Third
......... 8.3. .. .

8.3
41.2

49.5

8.1
4.4
5.7
3.4
1.8
4.7

28.0

2.0
4.5

6.5

1.2
2.6
0.9
1.4
0.9
0.8
0.7
3.9

12.5

96.6

4.5
2.0
0.3
29.0

35.7

132.3

Smallest Your
Third Nursery

22.4
39.0

61.5

16.3
5.5
5.9
3.9
2.8
3.3

37.7

2.2
4.1

6.2

1.6
3.5
1.3
2.0
1.2
2.5
2.3
4.2

18.7

124.1

3.6
2.6
0.0
50.7

56.9

181.0

Container Nurseries

Appendix Table 10--Income Summary: 42 Woody Ornamental Container Nurseries in Florida, 1988.

ALL
unit Nurseries

A Value of own plants sold . . .. S 381,829
B Change in plant inventory value. . .. S 42,167
C Increase in supply inventory . ... S 734
D Miscellaneous cash income. . ... $ 5,880

E TOTAL GAIN ................. 430,611

F Deduct cash costs except operator's salary t (328,623)
G Ded. non-cash costs except int. on capital S (24,403)

H Total Deductions . . .... S. (353,026)

I NET NURSERY INCOME . . .... S 77,585
J Operator's salary or time value. . .. $ 39,381

K RETURN TO CAPITAL. . . .. $. 38,204
L --Percent. .................. X 4.21

Largest
Third

854,362
87,574
0
15,106

957,043

(754,153)
(57,741)

(811,893)

145,150
70,815

74,334
3.60

Smallest Your
Third Nursery

74,680
21,059
1,878
1,678

99,295

(75,950)
(4,624)

(80,574)

18,721
16,744
w=..=l==...
1,977
0.64

Appendix Table 11--Statement of Financial Position: 42 Woody Ornamental Container Nurseries in Florida, 1988.

ALL Largest Smallest Your
unit Nurseries Third Third Nursery
.........------------........................................................................................................

---Current Assets---
A Cash/checkbook balance . . .
B Accounts receivable . . .
C Plant inventory value . . .
D Supply inventory value . . .

E Total CURRENT Assets . . .

---Long Term Assets---
Machinery & Equipment.
Buildings & Fixtures .
Land .........

I Sub-total (original cost) . . .

J Less Accumulated Depreciation. . .

K Total LONG TERM Assets . .... ...

L TOTAL ASSETS . . . .

---Liabilities---
N Current Liabilities. . . ..
N Long Term Liabilities. . . .

0 Total LIABILITIES. . . ... ...

P NET WORTH. . . . . .

0 TOTAL LIABILITIES & NET WORTH. . .

7,843
41,128
646,158
29,252

724,382

$ 127,727
S 102,802
$ 86,039

$ 316,568

$ (133,420)

$ 183,148

S 907,529

S 26,369
$ 120,949

$ 147,318

S 760,212

$ 907,529

11,729
102,134
1,498,326
81,568

1,693,757

302,799
244,793
141,438

689,031

(320,221)

368,810

2,062,566

62,976
215,042

278,019

1,784,548

2,062,566

2,808
3,749
215,963
6,869

229,389

23,824
24,847
55,301

103,971

(23,963)

80,008

309,397

4,335
55,667

60,002

249,395

309,397

. . . .
. . . .
. . . .

Container Nurseries

Appendix Table 12-Financial Ratios and Other Profitability Indicators: 42 Woody Ornamental Container Nurseries in
Florida, 1988.

All Largest Smallest Your
Nurseries Third Third Nursery
.................................................................................................................
Cash on Hand/Current Liabilities ......... 0.30 0.19 0.65

Accounts Recievable/Sales. ............ 0.11 0.12 0.05

Quick Ratio (Cash & Acct.Rec./Curr.Liab) ..... 1.86 1.81 1.51

Inventory Turnover ................ 0.59 0.57 0.35

Current Value/Orig. Cost of Long Term Assets 0.58 0.54 0.77

Total Assets/Total Liabilities .......... 6.16 7.42 5.16

Current Liabilities/Long Term Liabilities. ..... 0.22 0.29 0.08

Net Profit Margin. ............... .. 8.9% 7.8% 2.0%

Asset Turnover Ratio ............... 2.11 2.16 3.12

Return to Capital. ................. 4.21% 3.60% 0.64%

Leverage Factor. ................. 1.19 1.16 1.24

Return on Net Worth. ............... 5.0% 4.2% 0.8%

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MILLISECOND	CLASS.METHOD	MESSAGE
0	sobekcm_page_globals.constructor
0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.constructor	Navigation Object created from URI query string
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
0	cached_data_manager.retrieve_item_aggregation	Found item aggregation on local cache
0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
34	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file

	Front Cover
	Title Page
	Abstract
	Acknowledgement
	Table of Contents
	Main
	Appendix
	Tables