• TABLE OF CONTENTS
HIDE
 Front Cover
 Acknowledgement
 Table of Contents
 List of Figures
 List of appendix tables
 Introduction
 Data and results
 Productivity indicators
 Costs of production
 Cost efficiency
 Income summary
 Statement of financial positio...
 Total profitability model
 Concluding comments
 Concluding comments
 Back Cover














Title: Business analysis of container nurseries in Florida
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00026136/00016
 Material Information
Title: Business analysis of container nurseries in Florida
Series Title: Economic information report
Alternate Title: Container nurseries in Florida
Physical Description: v. : ; 28 cm.
Language: English
Creator: Perkins, George R
Almeter, Carolyn A
Dasse, Frank A ( Frank Arthur ), 1933-
Gunter, Dan L
Strain, J. Robert
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service
Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville, Fla
Publication Date: 1988 (Circular 865)
Copyright Date: 1989
Frequency: annual
regular
 Subjects
Subject: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Potted plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
 Notes
Additional Physical Form: Electronic reproduction of copy from George A. Smathers Libraries, University of Florida also available.
Dates or Sequential Designation: 1973-
General Note: Title from cover.
 Record Information
Bibliographic ID: UF00026136
Volume ID: VID00016
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltqf - AAB7741
notis - ACF4735
alephbibnum - 000408267
oclc - 08153546

Table of Contents
    Front Cover
        Page i
    Acknowledgement
        Page ii
    Table of Contents
        Page iii
        Page iv
    List of Figures
        Page v
    List of appendix tables
        Page vi
    Introduction
        Page 1
    Data and results
        Page 2
        Page 3
        Page 4
        Page 5
    Productivity indicators
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
    Costs of production
        Page 11
        Page 12
    Cost efficiency
        Page 13
        Page 14
    Income summary
        Page 15
        Page 16
        Page 17
    Statement of financial position
        Page 18
    Total profitability model
        Page 19
    Concluding comments
        Page 20
        Page 21
        Page 22
    Concluding comments
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 37
    Back Cover
        Page 38
Full Text
lol

$d NNovember 1989

Business Analysis of
Container Nurseries in
Florida, 1988


Circular 865


,intral Science
Library


JAN 10 lIgn
university of Florida


J. Robert Strain
Alan Hodges


Food and Resource Economics Department / Institute of Food and Agricultural Sciences
University of Florida, Gainesville, FI.









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


TABLE OF CONTENTS


LIST OF FIGURES .................

LIST OF TABLES ..................

LIST OF APPENDIX TABLES .........
INTRODUCTION ..................

PROCEDURE .....................

DATA AND RESULTS ...............

Size of Business ..................
Sales and Total Value of Production ..
Annual sales ................

Monthly sales ...............
Land, Labor and Capital ..........
Land: growing area ............

Labor: full-time equivalent persons .
Capital: owned and managed .....
Productivity Indicators ..............
Land Use ....................

Labor Use ....................
Capital Use ...................
Capital turnover ..............
Capital managed per person ......
Capital managed per acre .......

Distribution of managed capital ...
Costs of Production ................

Costs by expense category* ........

Salaries and wages .............

Production supplies ...........
Other production costs ..........
Administrative and overhead ......
Total cash costs ..............

Non cash costs ................
Total costs ..................

Costs as a percent of the total cost ...

Salaries and wages .............

Production supplies ...........

Other production costs ..........
Administrative and overhead ......
Total cash costs ..............
Non cash costs ...............

Cost Efficiency ...................
Cost per square foot of growing area

Cost per dollar's worth of production

Cash costs per dollar of sales .......

Income Summary .................

Total gain ............... .

Cost deductions and net nursery income

Return to capital ...............


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iv Container Nurseries


TABLE OF CONTENTS (Continued)
Page
Statement of Financial Position ................................................ 18
Assets .................... ................. .......... .......... ..... 18
Cash on hand .................................................. ...... 18
Accounts receivable ............................................. ..... 18
Inventory values ....................................................... 18
Total current assets ............................................. ..... 18
Long term assets ............................................... ..... 18
Total assets ........................................................ 18
Liabilities .. ....... ...... ... ... ................................... 18
Current liabilities .................................................... 19
Long term liabilities .................................................. 19
Total liabilities ....................................................... 19
N et W north ........................................................... 19
Total Profitability M odel .................................................... 19
Margin Management .. ......... ........................ ............... 20.
Asset M management ..................................................... 20
Leverage M management ................................................... 20

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

APPEND IX ................................................................ 23
D 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 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 Managed Capital ......................................... ... 10
12 Distribution of Costs of Production .......................................... 12
13 Costs Per Square Foot of Growing Area ........................................ 14
14 Costs Per Dollar's Worth of Production ......................................... 14
15 Cash Costs Per Dollar of Sales ............................................... 16
16 Distribution of Total Gain .................................................. 16
17 Return to Capital .................................. ......................... 17
18 Assets and Liabilities ... ..................................................... 19
19 Total Profitability M odel ................................................ 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 ............. 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, 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


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



ALL 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 . . ... number 12.91 28.37 4.56

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

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



Figure 1

Sales and Total Value of Production

42 Woody Orn, Container Nurseries, 1988


1000


800


600


400 [-..


200 ...


Thousands


All Nurseries

E sales


Largest Third Smallest Third

M Value of Production


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


0






Container Nurseries


Figure 2


42 Woody


100


Monthly Sales
Orn. Container Nurseries, 1988

CThousands)





Largest third
All Nurseries
S Smallest third


Jan FeD Mar A May Jun Jul AUg Sep Oct Nov Dec
Month


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).







Container Nurseries 5


Figure 3

Land: Growing Area

42 Woody Orn, Container Nurseries, 1988


Acres
30


25







10

5
0


All Nurseries Largest Third SmaI lest Third




Figure 4

Labor: Number of Persons

42 Woody Orn. Container Nurseries, 1988


Full-time Equiv. Persons C2080 hrs/yrD
30


25


20


15 ..........




0


All NLrseries Largest Third ~naI lest Third


Al Nurseries


Largest Third


Smallest Third






Container Nurseries


Figure 5
Capital Managed
42 Woody Orn. Container Nurseries, 1988


Do lars


(MI I ions)


121 Capital Leased
SCapital Owned


All Nurseries Largest Third Smallest Third


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


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.


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 number 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: Va I ue of Product ion/Sq. Ft.
42 Woody Orn. Container Nurseries, 1988

Do Ilars/Sq.Ft.
2.50


2.00 .....-- ............................


1 .50 ..................................................
Highest Rates
Lowest Rates
1.00


0. 50 ....... ..........


0.00
AIll Nurseries Largest SrmI 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 Cthousands)/Ful I-Time Equivalent
50

0 -...... ................................

3 0 ........... ................ ...............................................
Highest Rates
.-- Lowest Rates





0
All NLrserles Largest Siallest

2080 hrs./full time equivalent







Container Nurseries


Figure 8

Capital Turnover

42 Woody Orn. Container Nurseries, 1988


Sales as a Percentage of Capital Owned
on --


40% I-..------...


0%
A I NLrser fes Largest Sn I lest


S Highest Rates

C Lowest Rates


Figure 9

Capital Managed Per Person

42 Woody Orn, Container Nurseries, 1988


Dollars/Full-Time Equivalent Person


140000

120000

100000

80000

60000

40000

20000

0000


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





A II NurserlIesiaroest SrnIlIlest.


Highest Rates

Lowest Rates


.i


-----+L-------------------I----++___


..... = ...... 11111 l ............


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



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







Container Nurseries


Figure 10

Capital Managed Per Acre

42 Woody Orn, Container Nurseries, 1988


Dol lars Per Acre CThousands]
250






150 ------------ ------------- .... ....
2 0 0 . . 0 -- --....... .



Highest Rates

Lowest Rates
100....... ....


50 ............


0
AlI Nurseries Largest Sma lest




Figure 11

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

P plants







Accounts Rec.
4.2%
Suppi les/Cash
3.9%
Bu Ildings/ Insta l.
6.0%
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.






Container Nurseries


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


ALL Largest SmaLLest
Nurseries Third Third
--------------------------------------------------------------------------------------------------
LABOR TOTAL . . . . . . . .... . $186,285 37.1% $422,829 37.4% $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. . . . . . . .


$55,636 4.9% $4,637 3.4%


. . $49,250 9.8% $107,221 9.5% $13,997 10.4%

. . $368,004 73.3% $824,968 73.0% $92,693 68.6%


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

TOTAL ALL COSTS . . . . . . . .


S. $133,998 26.7% $305,249 27.0%
S. $502,002 100% $1,130,217 100%


$42,514 31.4%

$135,207 100%


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


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,


Figure 12

Distribution of Costs of Production
42 Woody Orn, Container Nurseries, 1988





Non-Cash Costs

Labor 27%
37%



Admi n./Overhead
10%

Other Prod. Costs
5%
Supp I es
21%






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


Costs Per
42 Woody


2.00



1.50


Figure 14

Do Ilar 's Worth of Production
Orn. Container Nurseries, 1988


Do I ars/Do Illar

--------


1. 00 -------
Break ver VTo


0.50



0.00


SHighest Rates
Lowest Rates
SNon-Cash Costs
- Cash Costs


AllI NurserIesLarlrse+ ~,I Ipr


Figure 13
Costs Per Square Foot of Growing Area
42 Woody Orn, Container Nurseries, 1988


Do I lars/sq.Ft,
2.50
SHighest Rates
2.00 --- ---.............................................. Lowest Rates

Non-cash Costs



1 00 .------............................ .........................






0.00
All NrseriesLargest smallest


Al I NurwriesL -t Smalleft







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 Do Ilar of Sales

42 Woody Orn, Container Nurseries, 1988


Do lars/Do I lar


l- q: .........


BreakevE st



l .........s s Lrgest Sm- lest








AII Nurser ies Largest Sma I lest


S Highest Rates

SLowest Rates


Figure 16

Distribution of Total Gain

42 Woody Orn. Container Nurseries, 1988


Do llars (Thousands)


1000


600 --


600 -------"----"


SRetLrn to Capital

Return to Operator

isiExpenses


400

200


Al I NLrserTes Lsrgest ~l lest


1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00


0 0 -
.....................................................................


All Nurseries Largest


Srrm I I est.







Container Nurseries 17

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

ALL Largest SmaLLest
unit Nurseries Third Third
TOTAL GAIN. . . . . . . . 430,611 957,043 99,295
Total Deductions . . . . . . .. (353,026) (811,893) (80,574)
NET NURSERY INCOME . . . . ... $. 77,585 145,150 18,721
Operator's salary or time value. . . ... 39,381 70,815 16,744
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
25% 0

20% ..... .......... ...........................

15% ..........


0 Highest Rates



0%

5%

-10%
All NurseriesLargest nalI lest


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.


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,
respectively. 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.

Uablitles
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, 19881


Dollars (Thousands)
r


2500


2000 -

1500 --*--- -.

1000 -- -------------


-u-rn


Au Nurseries Largest Smallest


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


- Current Assets
M Long Term Assets
I Current Liabilities
1- Long Term LlaDII.
SNet Worth


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 graphic
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


A I Il Nurseries


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.


---Margin Management---------------------------------------
total gain
Snet profit


net margin


total costs / ***
less interest total gain
i_______ _*
$392,407 $430,611 *
$882,709 *** $957,043 ***
$97,317 $99,295

---Asset Management---------------------------------------
cash total gain

$7,843 current $430,611
$11,729 *** assets $957,043 ***
$2,808 $---99,295
S$724,382 *
+ **** $1,693,757 ** *
accts. rec. $229,389 *
/ *
$41,128 **
$102,134 ***
$3,749 total assets
*_______ *


plant inven. *

$646,158 *
$1,498,326 ***
$215,963 *

+ *
supply inven *

$29,252 *
$81,568 ***
$6,869


* $907,529 *
**** 2,062,566 **
$309,397
* I


Long-term *
assets *

$183,148 *
$368,810 **
$80,008


Key

42 Nursery Avg
Largest Third
Smallest Third


7.77% ***
1.99% *

*
Rate of
return

X 4.21%
**** 3.60% ***
0.64% *

*
*
asset *
turnover *
*
0.474 *
0.464 *** *
0.321 *


*
*
*
*
*


*
*
*
*


= -Leverage Management-----------------------------.--------------------------- X *
Liability plus *
= current Liab. total Liab. net worth *
= *
$26,369 $147,318 $907,529 Leverage *
$62,976 ****** $278,019 **** $2,062,566 *** factor *
$4,335 $60,002 $309,397 *
= 1.194 *
= + + / **** 1.156 **
= Long term debt net worth net worth 1.241

$120,949 $760,212 760,212 *
$215,042 ** $1,784,548 ** 1,784,548 ***
$55,667 $249,395 249,395


RETURN ON
NET WORTH

5.03%
* 4.17%
0.79%


~===-IZ IIII-= ====-1 00-01t ==Ile-






22 Container Nurseries






Container Nurseries


APPENDIX


Appendix Table of Contents

page
Definitions ................ ................ ............................. 24
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,--divide 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 value ...
Line C: Supply inventory increase .......
shown previously
Line D: Miscellaneous income .........
Line E: Total gain ..................
Line F: Deduct cash costs .............
Line G: Deduct non-cash costs .........
Line H: Total deductions .............
Line I: Net nursery income ............
Line J: Deduct operator's salary ........
Line K: Return to capital .............
Line L: Rate of return to capital ........

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 O: Total liabilities ..............
Line P: Net worth ..................
Line Q: Total liabilities and net worth ....


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

from your business records, not shown previously
sum of lines A, B, C and D.
from Appendix Table 5 (subtract operators salary)
from Appendix Table 5 (subtract interest on capital)
sum lines F and G
line E minus line H
from line 1 of Table 5
line I minus line J
line K divided by Appendix Table 1, line O


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
sum lines 0 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 . . . . .. $
B Change in inventory value. . . . ... $

C Total value of production. . . . ... $


381,829
42,167

423,997


Largest Smallest Your
Third Third Nursery
........................................


854,362
87,574

941,937


74,680
21,059

95,739


Total growing area . . . . .


.sq.ft. 482,161
acres 11.07


F Full-time equivalent persons . . ... number


------------Capital Owned-------------
G Growing plants . . . . . .
H BLdgs, improvements . . . . .
I Machinery & equipment . . . .
J Land . . . . . . . . .
K Supply inventory . . . . . .
M Accounts receivable . . . . .
N Cash/checkbook balance . . . .

0 Total Owned Capital . . . . .


.*--------- Capital Leased-------------
BLdgs, improvements . . . .
Machinery & equipment . . . .
Land . . . . . . . .


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

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


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

. $ 907,529


5,810
1,607
63,750

71,167


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

978,696


1,240,684
28.48


12.91


92,905
2.13

4.56


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

2,200,066


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.


ALL 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 1C/1D) S 0.88 0.76 1.03

Sales/acre of total nursery area.(Table 1A/1E) $ 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) % 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) $ 29,571 30,114 16,392
Value of production per person* .(Table 1C/1F) $ 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)







28 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) X
Managed capital turnover. . (Table 1A/1AA) %

Capital owned/person* . . (Table 10/1F) $
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


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


1T/1E)
1U/1E)
1V/1E)
1W/1E)


---Distribution of Managed Capital---
in growing plants . . .(Table 1T/1AA) X
in buildings & wells. . .. (Table 1U/1AA) X
in machinery & equipment. . (Table 1V/1AA) X
in Land . . . . .. (Table 1W/1AA) X
in supply inventory . . .(Table 1X/1AA) %
in accounts receivable. . (Table 1Y/1AA) X
in cash/checkbook balance . (Table 1Z/1AA) X

TOTAL. . . . . . . . .. .


42.1
39.0


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 Your
Third Nursery
---------.-----..------------
24.1
22.7


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.


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 . . . .

Travel. . . . . . . . . .
Insurance . . . . . . . . .
Telephone .................
ELectricity . . . . . . . .
Taxes & Licenses . . . . . . .
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 . . . . . . .


ALL
unit Nurseries

S 39,381
S 146,904

$ 186,285

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

$ 107,926

$ 8,321
S 16,223

S 24,544


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

49,250

368,004


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

$ 133,998

S 502,002


Your
Nursery


Smallest
Third

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


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


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

135,207







30 Container Nurseries









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


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

LABOR TOTAL . . . . . . . .

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 & licenses. . . . . . . .
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 . . . . . . .


ALL
unit Nurseries

X 7.8
X 29.3

% 37.1

% 6.9
X 3.4
% 4.3
% 2.5
X 1.5
X 3.0

X 21.5


Largest Smallest Your
Third Third Nursery
..........3.......12.......4..................


1.7
3.2

4.9


X 0.9
X 2.0
X 0.7
X 1.1
X 0.8
X 0.7
X 0.6
X 3.0

X 9.8

% 73.3

X 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

73.0

3.4
1.5
0.2
21.9

27.0

100.0


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


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


All
unit Nurseries
Operator's............salary............................cents.8.17....


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

LABOR TOTAL . . . . . . ... cents


Plants & seeds . . .
Containers . . . .
Peat & soil . . . .
Fertilizers & lime . .
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-Land/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 ... . . . .

TOTAL NON-CASH COSTS . . . . .

TOTAL ALL COSTS . . . . . . .


Largest
Third


8.17
30.47

38.64

7.16
3.54
4.43
2.63
1.54
3.08

22.38

1.73
3.36

5.09

0.98
2.06
0.74
1.10
0.80
0.72
0.67
3.13

10.21

76.32


cents 3.32
cents 1.74
cents 0.00
cents 22.73

cents 27.79

cents 104.12


5.71
28.37

34.08

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


Smalles
Third


t Your
Nursery


18.02
31.38

49.41

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.


ALL
unit Nurseries
--.-------.---------.3......


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


. . . cents
. . . cents


LABOR TOTAL . . . . . . ... cents


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


cents
cents
cents
cents
certs
cents


SUPPLIES TOTAL. . . . . . . ... cents

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


OTHER PRODUCTION COSTS TOTAL . . . .

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

ADMINISTRATIVE & OVERHEAD COSTS TOTAL . .

TOTAL CASH COSTS . . . . . . .


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


cents


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


cents 1.1
cents 2.3
cents 0.8
cents 1.3
cents 0.9
cents 0.8
cents 0.8
cents 3.6

cents 11.6

cents 86.8


cents
cents
cents
cents


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

TOTAL ALL COSTS . . . . . ... cents


3.8
2.0
0.0
25.8

31.6

118.4


Largest
Third

7.5
37.4

44.9


Your
Nursery


Smallest
Third

17.5
30.5

47.9


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


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 J.









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


All Largest
unit Nurseries Third
------- --- --- -- --- -- --- --- --10.3- 8.3-


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


. . . . cents
. . . . cents


LABOR TOTAL . . . . . .... cents


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

SUPPLIES TOTAL . . . .

Facility repairs . . . .
Equipment operation . . .


cents
cents
cents
cents
cents
cents

cents


. . . cents
. . . cents


OTHER PRODUCTION COSTS TOTAL . . ... cents


Travel . . .
Insurance . . .
Telephone . . .
Electricity . .
Taxes & Licenses..
Advertising . .
Rent-Land/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


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

1.2
2.6
0.9
1.4
1.0
0.9
0.9
4.0

12.9

96.4

4.2
2.2
0.0
28.7

35.1


131.5 132.3


Your
Nursery


Smallest
Third

22.4
39.0

61.5

16.3
5.5
5.9
3.9
2.8
3.3

37.7


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


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


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








Container Nurseries


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


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

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


F Deduct cash costs except operator's salary $
G Ded. non-cash costs except int. on capital $


(328,623)
(24,403)


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

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

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


Largest Smallest
Third Third
...............................
854,362 74,680
87,574 21,059
0 1,878
15,106 1,678

957,043 99,295


(754,153)
(57,741)

(811,893)

145,150
70,815

74,334
3.60


(75,950)
(4,624)

(80,574)

18,721
16,744

1,977
0.64


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


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

E Total CURRENT Assets . .


---Long Term Assets---
F Machinery & Equipment . . . . . .
G Buildings & Fixtures . . . . . .
H Land . . . . . . . . . .

I Sub-total (original cost) . . . . .

J Less Accumulated Depreciation . . .

K Total LONG TERM Assets . . . . . .

L TOTAL ASSETS . . . . . . . .

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

0 Total LIABILITIES . . . . . . .

P NET WORTH . . . . . . . . .

Q TOTAL LIABILITIES & NET WORTH . . . .


All
unit Nurseries


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

S 724,382


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

$ 316,568

$ (133,420)

$ 183,148

$ 907,529


S 26,369
S 120,949

$ 147,318

S 760,212

S 907,529


Largest
Third


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


Smallest Your
Third Nursery
........................


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


Your
Nursery








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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