Business analysis of field nurseries in Florida

J. Robert Strain
Alan W. Hodges

Economic Information
Report 265

Business Analysis of Field Nurseries
in Florida, 1986, 1987, 1988

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

Central Science
Library
MAR 14 1990
University of Florida
i~mw ~ ,,

November 1989

I Florida I NuroerY& Businet YAnalysis I Series)

ii Field Nurseries

ABSTRACT
Sales, costs, returns, and efficiency indicators are presented for three samples of wholesale woody
ornamental field nurseries in Florida, one sample each for the tax years of 1986, 1987, and 1988. Indicators
of business performance generally declined over the three years. Average returns on capital investment were
19.7 percent in 1986 compared to 13.7 percent in 1988. For the most recent year (1988), capital investment
including plant inventory, land, equipment, buildings, supplies, and accounts receivable amounted to $1.119
million. Plant sales averaged $303,082, and growth in the value of plant inventory during the year was
$168,079. Total costs of production, including all cash expenses except payments to the owner/operator and
non-cash allowances for depreciation averaged $268,786. When adjustments were made for changes in
inventories and miscellaneous income, net nursery income averaged $207,266. Average returns (to owner-
operator and capital) per acre in production were $3,382. Comparable information is presented also for the
1986 and 1987 sample averages.

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

ACKNOWLEDGEMENTS
This report was made possible by the cooperating woody ornamental field 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 Bill Schall, Gary
Brinen, Larry Halsey, Loretta Hodyss, DeArmand Hull, Linda Landrum, Cathy Neal, Michael Sweat, John
Begeman, Victor Yingst, Bill Phillips, and Uday Yadav. 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.

ii Field Nurseries

ABSTRACT
Sales, costs, returns, and efficiency indicators are presented for three samples of wholesale woody
ornamental field nurseries in Florida, one sample each for the tax years of 1986, 1987, and 1988. Indicators
of business performance generally declined over the three years. Average returns on capital investment were
19.7 percent in 1986 compared to 13.7 percent in 1988. For the most recent year (1988), capital investment
including plant inventory, land, equipment, buildings, supplies, and accounts receivable amounted to $1.119
million. Plant sales averaged $303,082, and growth in the value of plant inventory during the year was
$168,079. Total costs of production, including all cash expenses except payments to the owner/operator and
non-cash allowances for depreciation averaged $268,786. When adjustments were made for changes in
inventories and miscellaneous income, net nursery income averaged $207,266. Average returns (to owner-
operator and capital) per acre in production were $3,382. Comparable information is presented also for the
1986 and 1987 sample averages.

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

ACKNOWLEDGEMENTS
This report was made possible by the cooperating woody ornamental field 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 Bill Schall, Gary
Brinen, Larry Halsey, Loretta Hodyss, DeArmand Hull, Linda Landrum, Cathy Neal, Michael Sweat, John
Begeman, Victor Yingst, Bill Phillips, and Uday Yadav. 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.

Field Nurseries iii

TABLE OF CONTENTS
Page
A B ST R A CT .................................... ............... ii
ACKNOW LEDGEM ENTS .................................................... ii
LIST O F FIG U R ES ......................................................... iii
LIST OF TABLES ............................................. .......... iii
LIST OF APPENDIX TABLES ................................. .............. iv
INTRO D U CTIO N ..................................... .................... 1
PR O CED U R E ............................................................. 1
DATA AND RESULTS ..................................... ................. 2
Size of Business ...................................... ... ................ 2
Sales and total value of production ................................... ....... 2
A annual sales ..... .. .. ...... .... .... ...... ... .. ... .. ... ... .. .... ..... 2
M monthly sales .. .... ....... ... ........ ..... ..... ...... ... .......... 2
Land, labor and capital .......................................... ......... 4
Land: Growing area ............ ......... ....................... ........ 4
Labor: People .......................................................... 4
Capital owned and m managed ................................... .......... 4
Productivity Indicators ....................................... ............... 6
L and use . . . .. . . . . . . . .. . .. . 6
Labor use ............................................................. 7
Capital use ...................... ... ............. .. .. .. .......... 8
C capital turnover ............................................. ......... 8
Capital managed per person ................... .................. ........ 8
Capital m managed per acre ....................................... ........ 8
D distribution of m managed capital .......................................... 11
Costs of Production ................. ................... .............. 11
Costs By Expense Category ...................................... ........ 11
Salaries and wages ................... ................... ............ 11
Production supplies .............. ................................... 11
O their production costs ................................................ 11
Adm inistrative and overhead ........................................... 11
Total cash costs ......................................... ........ 11
N on-cash costs .. .. ............ .... ........ .. ... .. ... .. .. .......... 11
T total costs .. ...... ..... ....... ... ... .... ....... ... ... .. .......... 11
Costs as a percent of total costs .......................................... 12
Salaries and wages ................................................... 12
Production supplies .................................................. 12
O their production costs ............................................... 12
Administrative and overhead ........................................... 12
Total cash costs .................................................... 12
N on cash costs .................................................... 12
Cost Efficiency ........................................................... 13
Costs per acre of growing area ............................................. 13
Costs per dollar's worth of production ........................................ 14
Cash Costs per dollar's worth of sales ........................................ 14

Field Nurseries

TABLE OF CONTENTS (Continued)
Page
Income Summary ................... .......... ................. ....... ..... 16
Total gain .................. ................................ .... ......... 16
Cost deductions and net nursery income ................... ............ ........... 16
Return to Capital .................. ....................... .............. 17
Statement of financial position ................... ......... ...... ............. 18
Current Assets .................. ...................... ................ 18
Cash on hand .......... ............................ .............. 18
Accounts receivable .................. .................... .. ......... 18
Inventory values .................. ....................... .............. 18
Total current assets .................. ................... .... ........ 19
Long term assets .................. ..................... ............... 19
T otal assets .......................... ......... ....................... 19
Liabilities ........ .. .... ....... ........... ........ ...... .. 19
Current liabilities ..... .......................... ...... .......... ....... 19
Long term liabilities .................. ........... ... .... .. ...... ... 19
Total liabilities ................. ....... .. ..................... 20
N et W north ........ .... ................ .. ..... .... ......... 20
Total Profitability Model ............ ...... ................ ................ 20
M argin management .... .... .... ........................ ............ .. 20
Asset management .......... ...... .................... ........ ........ 20
Leverage management ............ .. ........ ......................... 20
CONCLUDING COMMENTS ........ ...... ...... .......................... 20
APPENDIX ..................... .. ............ ..... ................ 23

Field Nurseries

LIST OF FIGURES

Figure

1 Sales and value of production .........
2 M monthly sales ....................
3 Land: growing area ................
4 Labor: number of employees .........
5 Capital owned and managed ..........
6 Land use: Value of production per acre .
7 Labor use: Value of production per person
8 Capital turnover ..................
9 Capital managed per person ..........
10 Capital managed per acre ...........
11 Distribution of managed capital .......
12 Distribution of costs of production .....
13 Costs per acre ...................
14 Costs per dollar's worth of production .
15 Cash costs per dollar of sales .........
16 Distribution of total gain ............
17 Return to capital ..................
18 Assets and liabilities .......
19 Total profitability model, three samples of fi
1986, 1987, 1988 ................

eld nurseries i
. . . .

LIST OF TABLES

1 Sales, acres, people and capital, three samples of field nurseries in Florida,
1986, 1987, and 1988 ..................................................
2 Costs of Production, three samples of field nurseries in Florida, 1986, 1987, and 1988 ........
3 Income Summary, three samples of field nurseries in Florida, 1986, 1987, and 1988 .........

Page

. .
.

o .
. o o .

. .

. .

in Florida,

Table

Page

Field Nurseries

LIST OF APPENDIX DATA TABLES

Appendix Table Page

1 Size of business, three samples of field nurseries in Florida, 1986, 1987, and 1988 ............ 26
2 Land use indicators, three samples of field nurseries in Florida, 1986, 1987, and 1988 ........ 27
3 Labor use indicators, three samples of field nurseries in Florida, 1986, 1987, and 1988 ......... 27
4 Capital use indicators, three samples of field nurseries in Florida, 1986, 1987,
and 1988 .............. ...... .......... ......... ............. .... 28
5 Costs by expense category, three samples of field nurseries in Florida,
1986, 1987, and 1988 .................. ................................. 29
6 Percent of total costs by expense category, three samples of field
nurseries in Florida, 1986, 1987, and 1988 ....................................... 30
7 Costs per acre, three samples of field nurseries in Florida, 1986, 1987, and 1988 ............. 31
8 Costs in cents per dollar's worth of production, three samples of field nurseries in
Florida, 1986, 1987, and 1988 ................... ........... ............... 32
9 Cost in cents per dollar's worth of sales (no adjustment for change in plant
inventory value), three samples of field nurseries in Florida, 1986, 1987, and 1988 ........ 33
10 Income summary, three samples of field nurseries in Florida, 1986, 1987, and 1988 ........... 34
11 Statement of Financial Position, three samples of field nurseries in
Florida, 1986, 1987, and 1988 .............................................. 34
12 Financial Ratios and other profitability indicators, three samples of field nurseries
in Florida, 1986, 1987, and 1988 ................... .......................... 35

BUSINESS ANALYSIS OF FIELD NURSERIES IN FLORIDA,
1986, 1987, 19881
J. Robert Strain and Alan Hodges2

INTRODUCTION
This publication contains information on sales,
costs, returns and production efficiency for samples
woody ornamental field nurseries in Florida for
1986, 1987, and 1988. Other publications in this
series includes reports on Woody Ornamental
container 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 requirement 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
statistically selected sample. However, the nursery
operators participating in the Florida Nursery

Business Analysis Program are thought to represent
some of the more efficient woody ornamental field
nurseries in Florida, rather than being typical of the
woody ornamental field nursery industry.

Data were collected for the respective fiscal years
1986, 1987, and 1988. In some cases, data were
received for a fiscal year that did not coincide with
the calendar year. Data for fiscal years ending after
July 1 in one year, and before July 1 the next year
were included with the corresponding calendar year
data. Numbers of firms providing data each year
were as follows: 1986, 6; 1987, 7; 1988, 12.

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 this manner, production of plants in
inventory which are not of salable size are accounted
for in a fair manner. 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

1. This document was published as Economic Information Report 265, Florida Cooperative Extension Service, Institute of Food and
Agricultural Sciences, University of Florida, Gainesville, November 1989.
2. J. Robert Strain is an Extension Economist and professor, and Alan Hodges is an Economic Analyst, both in IFAS, Food & Resource
Economics Department, Gainesville, FL 32611.
The Institute of Food and Agricultural Sciences is an Equal Opportunity/Affirmative Action Employer authorized to provide research, educa-
tional information and other services only to individuals and institutions that function without regard to race, color, sex, or national origin.
Florida Cooperative Extension Service / Institute of Food and Agricultural Sciences / University of Florida / John T. Woeste, Dean

Field Nurseries

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.

Firms participating in the program were located
in the Florida counties of Alachua, Broward, Baker,
Collier, Dade, Jefferson, Lake, Lee, Leon, Marion,
Orange, Palm Beach, and Volusia. Nursery operators
received an analysis for their own operation, shortly
after they supplied their data, which contained
information similar to that shown in this report.

DATA AND RESULTS
The key findings of this report appear in the text
in the form of charts and graphs. The tables and
figures present average values for all nurseries in the
sample each year. On charts where lines appear
indicating the range of data, the upper line represents
the average of the highest third of firms in the group
for a particular measure, and the lower line is the
average for the lowest third. The data from which
the charts and graphs 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 of you who may wish to examine
some 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.

The three samples of nurseries (one for each
year) contributing data for this report differed widely
in average size of operations. Since different firms
supplied data for each year, aggregate data such as
size of business, and total dollar expenses are not
directly comparable. However, the derived measures
for productivity, efficiency, and profitability can be
compared, and should provide useful indicators of
average business performance each year independent
of the size of firms involved.

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 the other tables and figures 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 three samples of field nurseries.
Own plant sales averaged $224,914 for the 1986
sample, $428,809 for the 1987 group, and $303,082
for 1988 nurseries (Table 1).

Total value of production for the year is sales
adjusted for change in the value of the plant
inventory during the year. If the value of the plant
inventory increases during the year, the total value
of the year's productive activities was greater than
sales, and vice versa. For all three samples, plant
inventory change was positive, giving a total value of
production of $332,971 for the 1986 sample, $615,671
for the 1987 group, and $471,160 for the 1988 firms
(Table 1)

Monthly sales. Figure 2 shows the pattern of
monthly sales as a percentage of the annual total for
each of the three years. Sales for the 1986 sample
had a sharp peak in June and July, with a secondary
peak in October. Sales for the 1987 sample were
strongest in January, February, July, August and
September, with a deep trough during March through
June. The 1988 sample of nurseries had relatively
uniform sales throughout the year, generally
increasing during the months of August through
December.

Field Nurseries 3

Table 1--Sales, acres, people, and capital: Field Nurseries in Florida, 1986, 1987, 1988.

1986 1987 1988
unit sample sample sample

Value of own plants sold . . .. S 224,914 S 428,809 S 303,082
Change in inventory value. . ... $ 108,057 186,861 168,079

Total value of production. . ... .S 332,971 $ 615,671 S 471,160

Total growing area . . ... ..acres 19.80 75.72 61.29

Full-time equivalent persons . .nurbe

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

Total Managed Capital . . ... S

5.88 9.27 8.92

670,751 S 1,625,450 S 1,198,812
728,058 715,086 399,517
1,398,809 S 2,340,536 S 1,598,329
1,398,809 S 2,340,536 S 1,598,329

see also Appendix Table 1 for more detail.

Figure 1

Sales and Value of Production

Field Nurseries, 1986, 1987, 1988

DoI lars CtnousanasD

:: :.. ........

1988

1986

SSales

1987
Year

Svalue of Poduct ion

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

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

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

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

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

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

Field 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 office, parking, roads, ditches,
fences, etc. are not included. Production area
averaged 19.8 acres for the 1986 sample, 75.7 acres
for 1987 firms, and 61.3 acres for the 1988 group
(Table 1 and Figure 3).

Labor: People. The number of fulltime equivalent
persons employed 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 time 52
weeks per year = 2,080 hours). Average number of
persons involved for the 1986 firms was 5.9, for those
of 1987 it was 9.3, and with the 1988 sample it was
8.9 (Table 1 and Figure 4).

Capital owned and managed. Capital owned is
the current value (original cost less depreciation
taken) of capital assets such as equipment, buildings

and land owned in the nursery operation, plus the
value of plants and supplies in inventory, accounts
receivable, and cash on hand. Related debt is not
deducted in this determination of the value of capital
owned. For the nurseries in the 1986 sample, capital
owned averaged $670,751. A different set of firms in
the 1987 sample averaged $1.625 million, and the
1988 sample averaged $1.199 million. 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 $1.399 million for the
1986 sample, $2.341 million for the 1987 group, and
$1.598 million for the 1988 firms (Table 1 and Figure

Figure 2

Monthly Sales
Field Nurseries, 1986, 1987, 1988

Do Ilars (ThousandsD
50

40

30
20

10 -
10

Jan Feb Mar Apr May Jun Ju Aug sep Oct Nov Dec
Month

-- 196 ---- 1987 -*- 1988

Field Nurseries

Figure 3

Land: Growing Area
Field Nurseries, 1986, 1987, 1988

Acres
80

60o -
I M

1988

1987
Year

Figure 4
Labor: Number of Persons
Field Nurseries, 1986, 1987, 1988

Full-time equiv. persons C2080 hrs/yr.,
10

106--------------------------------

19B7 19B8
Year

1986

1986

Field Nurseries

Productivity Indicators

Land Use (Appendix Table 2)
The traditional indicator of efficiency in the use
of land is value of production per acre of growing
area. Value of production is annual sales of own
plants adjusted for change in the value of plant
inventory during the year. Average rates of
production for the three samples were $16,818 per
acre for the 1986 firms, $8,131 per acre for the 1987
group, and $7,687 per acre for 1988 (Figure 6).
Highest annual rates of production averaged $30,536
per acre, while the lowest rates averaged $3,790 per
acre.

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

addition, nursery layout, fertilizing and growing
techniques, and marketing program can alter affect
production per acre.

Plant inventory value per acre in production is
another indicator of efficiency in the use of land.
This averaged $23,780 for 1986 nurseries, $17,865 for
1987, and $16,014 for the 1988 group. For ongoing
operations, low plant inventor)' 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.

Figure 5
Capital Owned and Managed
Field Nurseries, 1986, 1987, 198B

DoI lars (Mi I ionsD
2.50

2 .0 0 .... .....................................................................

1.50 -
x* XH Capital Leaseal

1986 1987 1988
Year
Capital managed includes leased property
5i l

0 00
1986 1987 1988
Year
Capital managed includes [eased property

Field Nurseries

Labor Use (Appendix Table 3)
Value of production per fulltime equivalent
person (2080 hrs per year) is one of the best
measures of efficiency in the use of labor. This
averaged $56,602 per person for the 1986 sample,
$66,420 for 1987, and $52,792 for 1988 (Figure 7).
The highest third of firms on this measure averaged
$111,398, and the lowest third averaged $25,607 per
employee.

An indicator of intensity in the use of labor is
production area per person. Production area
averaged 3.37 acres per person for the 1986 sample,
8.17 acres for 1987, and 6.87 acres for 1988. Stated
another way, the number of persons per acre
averaged .30 for the 1986 group, .12 for the 1987
sample, and .15 for the 1988 nurseries.

Higher sales per person is desirable, however, this
measure should be viewed together with other
indicators such as production rate, space use
intensity, capital turnover, and costs per square foot.
High sales per person can be less than optimal if the

number of employees is too low for the volume of
plants handled or space cared for, resulting in poor
plant care, or lower product quality.

Lower sales per employee can result during
periods of rapid expansion when extra help is
needed before plants become salable. Or it can
also be the result of difficult economic times when
sales are slow. Differences between nurseries can be
the result of differences in investment in labor
saving capital items, labor management practices, or
crop turnover rate.

Figure 6
Land Use: Value of Production/Acre
Field Nurseries, 1986, 1987, 1988

Dollars Per Acre CthousandsD
35

3 0 ....... ................ ............ .................... .................... ..........

2 5 ...................................................................................................................
25

2015 ................................................................................................... Low est R ate s
5 Lowest Rates

0
1i86 1987 19BB
Year

Field 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 the 1986
sample averaged 33.5 percent, for the 1987 group
26.4 percent, and for 1988 25.3 percent (Figure 8).
This means that for samples averages in all years,
annual sales were less than or equal to one-third of
the capital investment. Highest rates of capical
turnover were 55.6 percent, and lowest rates were
11.4 percent.

In general, larger percentage turnover numbers
are desirable, for they indicate greater sales per
dollar of investment in the nursery. Problems that
lower turnover rate include any of the items already
mentioned that lower production rate. 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 will 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
fulltime equivalent person averaged $237,784 for the
1986 nurseries, $252,503 for the 1987 group, and
$179,088 for the 1988 firms (Figure 9). There were
substantial variations between firms on this measure.
The highest third of firms invested an average of
$311,426 per person, while the lowest third averaged
$102,030 per employee.

Capital Managed Per Acre.Capital managed per
acre of growing area averaged $70,652 per acre for
the 1986 sample, $30,911 for 1987, and $26,078 for
1988 (Figure 10). The highest third of firms'
invested an average of $83,876 per acre, and the
lowest third averaged $16,742 per acre.

Figure 7

Labor Use: Value of Production/Person
Field Nurseries 1986, 1987, 1988

Dollars/Ful Itime equivalent CthousandsD
120

100

s o ..................................................................................................................
80

S60Higest Rtes
0 "- Lowest Rates
40N

N0

1986 1987 1988
Year

Field Nurseries

Figure 8

Capital Turnover

Field Nurseries, 1986, 1987, 1988

Sales as a Percentage of Capital Owned
60

5 0 .....................................................................................................................
50

40. .

Loghest Rates

10 -

1986 198-7 1988
Year

Figure 9

Capital Managed Per Person
Field Nurseries, 1986, 1987, 1988

Do lars Per Person (thousandsD

SMIgnhest Rates
I Lowest Pates

1988

1996 19B7
Year

...... .................. :7. .................... ".-..................... .T ..................... ..........

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

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

i ... ......

Field Nurseries

Figure 10

Capital Managed Per Acre

Field Nurseries, 1986, 1987, 1988

Dollars Per Acre CthousandsD
inn

1986 1987 988
Year

-- Highest Rates
I0 Lowest R~tes

Field 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 1988
field nursery average. Growing plants in inventory
represented the largest share of capital managed,
61.4 percent. Next in importance was land, 32.1
percent. Other lesser areas of capital investment
were machinery and equipment (2.1 percent),
buildings and installations (1.5 percent), supplies (.1
percent), accounts receivable (1.7 percent), and cash
on hand (1.1 percent).

Costs of Production
For the purposes of this report, costs of
production include not only cash outlays but also
non-cash costs and allowances that must be covered
over time if the business is to remain viable. The
itemized budget for cash expenses presented in
Appendix Table 5 and summarized in Table 2 of this
report is considered to be a minimal analysis of the
costs of production involved in an ornamental
nursery enterprise. Included as a non-cash cost is an
allowance for a minimum return on investment. The
interest rate used here 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 field nursery, either as a buyer,
seller, or lender.

Salaries and wages. The salary and wage group
includes the operator's salary or time value, and
employees wages, salaries, benefits, and other payroll
costs. As mentioned earlier, in some cases the
operator's salary was zero or was not appropriate, so
a time-value was estimated based upon the operator's
expected earnings, or previous experience. The
operator's salary or time value averaged $33,654 for
the 1986 sample, $42,014 for the 1987 group, and

$42,536 for the 1988 nurseries. Wages, salaries, and
associated expenses for employees averaged $68,744
for 1986, $115,008 for 1987, and $120,655 for 1988.
Thus, total expenses on wages and salaries averaged
$102,398 for 1986, $157,022 for 1987, and $163,191
for the 1988 sample (Table 2).

Production supplies. Expenses in this group
include plants and seeds, containers, peat and soil,
fertilizer and lime, pesticides and chemicals, and
other production supplies. Expenses for supplies for
the 1986 sample averaged $45,466, for the 1987
group $120,810, and for 1988 nurseries $76,566.

Other production costs. Other production costs
are facility repairs/maintenance and equipment
operating costs. For the 1986 group they averaged
$12,686, for 1987 $24,917, and for 1988 nurseries
$20,737.

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. This group
of expenses includes travel/trade shows, insurance,
telephone, electric power, advertising, rent, and other
cash expenses. Administrative and overhead
expenses averaged $28,845 for the 1986 group,
$51,003 for 1987, and $36,616 for 1988.

Total cash costs. Total cash costs, including all
items mentioned above, averaged $189,396 for 1986,
$353,752 for 1987, and $297,110 for the 1988 sample.

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 $96,769 for 1986, $210,289 for 1987,
and $158,069 for 1988.

Total all costs. Total costs averaged $286,191 for
1986, $564,041 for 1987, and $455,179 for the 1988
group.

12

Table 2--Costs of Production: Field Nurseries in Florida, 1986, 1987, 1988.

1986 sample

1987 sample

Field Nurseries

1988 sample

LABOR TOTAL . . .... ..102,398 35.8% $157,022 27.8% $163,191 35.9%

SUPPLIES TOTAL . . .
OTHER PRODUCTION COSTS TOTAL .
ADMINISTRATIVE & OVERHEAD COSTS TOTAL
TOTAL CASH COSTS . . .

$45,466 15.9%
$12,686 4.4%

$120,810 21.4%
$24,917 4.4%

S76,566 16.8%
520,737 4.6X

S28,845 10.1% $51,003 9.0%X 36,616 8.0%
$189,396 66.2% $353,752 62.7% $297,110 65.3%

TOTAL NON-CASH COSTS . ... 96,796 33.8X $210,289 37.3% $158,069 34.7%
z sccsssss= ==5s == f L rs =

TOTAL ALL COSTS . . .

S286,191 100% $564,041 100%

$455,179 100%

See also Appendix Tables 5 and 6 for more detail.

Costs as a Percent of the Total Cost (Appendix
Table 6)
While expenditures in the form of dollars show
the magnitude of expenses for various cost
categories, cost percentages are more useful for
comparing the cost structure of individual firms with
industry averages which may represent significantly
different size of business. 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 the table. Distribution
of costs of production by category are shown
graphically for the 1988 industry average in Figure
12.

Salaries and wages. Salaries and wages (includes
operator) averaged 35.8 percent of all costs for the
1986 firms, 27.8 percent for 1987, and 35.9 percent
for 1988. Employees wages and salaries were 24.0
percent for the 1986 group, 20.4 for the 1987
sample, and 26.5 percent for 1987. Thus, the 1987
sample had a considerably lower percentage of labor
costs than the 1986 or 1988 samples.

Production supplies. Expenses on production
supplies ("plants and seeds" through "other
production supplies") also fluctuated considerably
from sample to sample. Average costs for the 1986
group were 15.9 percent of total costs, 21.4 percent
for the 1987 sample, and 16.8 percent for 1988.
Thus, the lower percentage cost of salaries and

wages for the 1987 sample was completely offset by
a higher percentage of expenses for production
supplies. The largest share of expenses in this
category was for "plants and seeds" (11.0 to 9.6
percent).

Other production costs. Other production costs
("facility repairs" and "equipment operation") were
relatively stable, averaging 4.4 percent for 1986 and
1987, and 4.6 percent for the 1988 nurseries.

Administrative and overhead. These costs
("travel" through "other cash expense") averaged 10.1
percent of all costs for 1986, 9.0 percent for 1987,
and 8.0 percent for 1988.

Total cash costs. Total cash costs as a percent
of all costs for field nurseries was 66.2 percent for
1986, 62.7 percent for 1987, and 65.3 percent for
1988.

Non-Cash Costs. Non-cash costs ("depreciation"
through "interest on capital") averaged 33.8 percent
of total costs for 1986, 37.3 percent for 1987, and
34.7 percent for 1988. These percentages are the
differences between cash costs and total costs. Thus,
the lower percent cash costs for 1987 were offset by
the higher percentage of non-cash costs. The largest
share of non-cash costs were due to interest on
capital (28.1 to 37.3 percent). Depreciation on
equipment, buildings, and other property
improvements ranged from 2.8 to 5.7 percent of total
costs during the three years.

Field Nurseries

Figure 12

Distribution of
Woody Ornamental

Supplies
17%

Equip Op. & Repair
5%
ACmi nistrat ive
8%

Cost Efficiency
Costs per acre of growing area are a useful
indicator for comparing growing costs in relation to
the space used for production. Similarly, costs per
dollar of sales and per dollar value of production are
important indicators for comparing growing costs to
product revenue.

Costs Per Acre of Growing Area (Append. 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. Costs per acre of growing area averaged
$14,462 for the 1986 sample, $7,449 for 1987, and
$7,405 for 1988 (Figure 13). Highest rates averaged
$29,839 per acre, and lowest rates were $4,312.
Deducting total costs per acre from value of
production per acre for these field nurseries yields
an average return per acre of $2,356 for the 1986
firms, $682 for the 1987 group, and $282 for the

Costs of Production
Field Nurseries, 1988

Labor
36%

Non-Cash Costs
35%

1988 nurseries. Thus, lowest average costs per acre
for the 1988 nursery sample did not result in the
highest profit per acre. The higher costs and returns
per acre for the 1986 firms perhaps indicate a more
optimal level of production intensity. Cash costs per
acre (excluding depreciation, interest, etc.) averaged
$9,583 for 1986, $4,661 for 1987, and $4,835 for the
1988 nurseries.

Other things being equal, a lower cost per acre is
desirable. Problems that keep costs per acre from
declining as rapidly a revenue drops include
inefficient labor management, insufficient investment
in labor saving capital items, destruction or theft of
supplies and plants, and poor input purchasing
practices. Other causes of increased costs may not
be a problem if they result in increased revenue.
One example might be increased costs for wire root
ball cages in order to satisfy the requirements of a
premium market.

Field Nurseries

Costs Per Dollar's Worth of Production (Appendix
Table 8).
Costs per dollar's worth of production (sales
adjusted for change 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 the
1986 field nurseries was 86.0 cents, for the 1987
sample was 91.6 cents, and for the 1988 group was
96.6 cents (Figure 14). Thus, total costs for the 1986
nurseries were 14 percent below the breakeven level,
whereas the 1987 and 1988 samples showed a return
per dollar's worth of production of 8.4 percent and
3.4 percent, respectively. The least profitable third
of the firms had a cost per dollar value of production
of $1.72. The most profitable third of firms achieved
a cost of $.583, and a margin of 42 percent!

Cash Costs Per
Table 9).

Dollar's Worth of Sales (Appendix

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
Appendix Table 5 by the value of own plants sold
from Table 1. Average cash costs per dollar of sales
were 84.2 cents for the 1986 group, 82.5 cents for
1987, and 98.0 cents for 1988 (Figure 15). The most
profitable third of firms had cash costs per dollar of
sales of $.72, and the least profitable third of firms
had cash costs of $1.62 per dollar of sales.

In general, lower costs per dollar of sales are
desirable. Rising costs per dollar of sales are
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 of prices to keep
up with cost increased will also cause higher costs
per dollar of sales.

Field Nurseries

Figure 14

Costs Per Do l ar 's Worth
Field Nurseries, 1986,

Cents Per Dollar
200

0 L...

Breakeven Cost
. . . . . . . . .

s50 -

1986 1987 1988
Year

of Product ion
1987, 1988

-0- Highest Rates
- Lowest Rates
tS Non-Cash Costs
Cash costs

Figure 15

Per Do Ilar 's Worth of Sales
d Nurseries, 1986, 1987, 1988

Cents Per Dollar

150 .. ................ ................... ................ .... ...........

100 BreaQ even Cost
I 0 ......... ......I...................... ..........................

1986 1987
Year

- Highest Rates
* Lowest Rates

Costs
Fiel

50

0

19B8

Field Nurseries

Income Summary
This section develops net nursery income and
describes the distribution of total gain to expenses,
return to the owner-operator, and return to the
money invested in the operation. Table 3 shows the
income summary, and figure 16 graphically indicates
the main components of total gain.

Total Gain
Total gain is the total value produced by the
year's operations: the sum of plant sales, changes in
plant and supply inventory values, and miscellaneous
income. Increases in inventories of supplies were
negligible. 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 from about $3,474 to $4,809 for the three
samples. Total gain averaged $337,482 for the 1986
nurseries, $619,212 for 1987 firms, and $476,051 for
1988.

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 (Figure 16).
Total deductions averaged $172,047 for 1986,
$326,974 for 1987, and $268,786 for the 1988 group.

Net nursery income is the total annual return to
the operator and the capital invested in the
operation. Average net nursery income was $165,435
for 1986, $292,238 for 1987, and $207,266 for the
1988 firms.

Return to Capital
The return to capital is net income less the
operator's salary or time value. When the owner and
operator are the same person, dividing net nursery
income between the operator and return to capital
is not important, however, when the owners are
outside investors, accurate division is crucial.
Average operator salaries were given in the previous
section "Dollar Costs by Expense Category." Return
to capital averaged $131,781 for the 1986 sample,

$250,224 for the 1987 group, and $164,730 for 1988
(see Appendix Table 12 for more detail).

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
is equivalent to the widely quoted yields for capital
market instruments such as certificates of deposit,
treasury notes, bonds, etc. Average value of capital
invested for each of the three years was given in
Table 1. Figure 17 shows that average rate of return
on capital was 19.7 percent for the 1986 sample, 15.4
percent for the 1987 group, and 13.7 percent for
1988. Thus, for 1988, for every dollar invested in
these field nurseries, there was a return of 13.7
cents. The highest third of the firms had an average
rate of return of 42.8 percent, and the lowest third
a minus 5.8 percent.

Field Nurseries

Table 3--Income Summary: Field Nurseries in Florida, 1986, 1987, 1988.

1986 1987 1988
unit sample sample sample

TOTAL GAIN . . . ... .$ 337,482 S 619,212 476,051

Total Deductions . . ... .S (172,047) (326,974) (268,786)

NET NURSERY INCOME . . .... S 165,435 292,238 207,266
Operator's salary or time value ...... .S 33,654 42,014 42,536
RETURN TO CAPITAL. . . ... 131,781 250,224 164,730
*-Percent. . . . ... X 19.65 15.39 13.74

See also Appendix Table 10 for more detail.

I Figure 16

Distribution of Total

Gain

Woody Ornamental

Field Nurseries

Dollars CThousandsD

.9.5..9....9..

Return to Capital
Return to Operator

SExpenses

1995 19B6 1987

400 -

200 -

Field Nurseries

Figure 17

Return to Capital

Field Nurseries, 1986,

1987, 1988

Percentage Profit to Capital

- Hgrigest Rates
S Lowest Rates

20%

1 .................... . . ......

-10198% 19-- 19
1986 1987 19BB

Statement of Financial Position
The statement of financial position (Appendix
Table 11) summarizes the assets and liabilities of
field nurseries. These data represent the mid-year
financial situation of the firms, 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 for field nurseries in
1986, 1987 and 1988.

Current 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 $21,790 for the 1986
sample, $13,904 for the 1987 group, and $17,617 for
1988 firms. The main function of cash on hand is to
pay current liabilities. As a ratio of current
liabilities, cash on hand represented 3.05 times, 2.37
times, and 1.82 times, respectivley.

Acounts 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 $8,230 for 1986, $37,140 for 1987, and
$27,834 for the 1988 firms. As a percentage of
annual sales, these amounts represented 4 percent,
9 percent, and 9 percent, respectivley.

Inventory values include growing plants and
supplies, which were presented previously in Table
1. The combined value of inventories averaged
$473,844 for 1986, $1,355,739 for 1987, and $983,839
for the 1988 nurseries. Ornamental trees in field
production may not be considered a current asset if
they normally would not be sold for two or more
years, however, the inventory data collected were
supposed to represent the current market value of
the crops, so plant inventory is reported as a current
asset.

Owned

Field Nurseries

Total current assets averaged $503,864 in 1986,
$1,406,782 for 1987, and $1,029,291 for the 1988
group.

Long Term Assets
These 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 an idea of the degree to which
capital assets have been depleted. Original
investments averaged $214,171 for 1986, $270,911 for
1987, and $237,551 for the 1988 firms. Subtracting
accumulated depreciation leaves a current value of
$166,887 for 1986, $218,668 for 1987, and $169,521
for the 1988 nurseries. As a percentage of the
original investment, these current values represent 78
percent, 81 percent, and 71 percent, respectively.

Total assets. The sum of short term and long
term assets gives average total assets of $670,751 for
1986, $1,625,450 for 1987, and $1,198,812 for the
1988 firms. These amounts are the same as reported
for "total owned capital" in Table 1 and Appendix
Table 1.

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

Current liabilities averaged $7,156 for 1986,
$5,872 for 1987, and $9,682 for the 1988 group. 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 was 4.2 for the
1986 nurseries, 8.7 for the 1987 group, to 4.7 for the
1988 firms.

Long term liabilities include notes payable and
mortgages. They averaged $112,604 for 1986,

Figure 18

Assets and Liabilities
Field Nurseries, 1986, 1987, 1988

Dollars CMi lions)
2.00

1.50
Not worth
I Lon Term Liabil
1.00 .-..................................... = current Lia D iHIti e
Long Term Assets

0.M0 Current Assets

0.00

1986 1987 1988

Field Nurseries

$99,638 for 1987, and $138,020 for the 1988 group.
The ratio of current liabilities to long term liabilities
was .06 for 1986, .06 for 1987, and .07 for 1988.

Total liabilities. The sum of current and long-
term liabilities gives average total liabilities of
$119,760 for 1986, $105,510 for 1987, and $147,702
for 1988. The ratio of total assets to total liabilities
was 5.6, 15.4, and 8.1, respectively, for the three
years.

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 of the field
nurseries sampled was $550,991 for 1986, $1,519,941
for 1987, and $1,051,110 for 1988.

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
the years of 1986, 1987, and 1988 are given in the
top, middle, and bottom of each cell in the model.
Data for 1988 will be discussed here to illustrate the
calculations.

Margin Management
From total gain ($476,051) is subtracted total costs
less interest (total deductions, $172,047 plus
operator's salary, $33,954) to give return to capital
($164,730). This is divided by total gain to yield an
average net profit margin of 34.6 percent.

Asset Management
Current assets ($1,029,291) plus long term assets
($169,521) make total assets of $1,198,812. This is
divided into total gain ($476,051) to give an asset
turnover rate of 0.40. Asset turnover multiplied by

net profit margin (34.6 percent) results in an average
return to capital of 13.7 percent.
Leverage Management
Current liabilities ($9,682) plus long term
liabilities ($138,020) gives average total liabilities of
$147,702. This is subtracted from total assets to
yield average net worth of $1,051,110. Total
liabilities plus net worth ($1,198,812) divided by net
worth gives a leverage factor of 1.14. This is really
the ratio of total assets under one's control to net
worth. Leverage times rate of return to capital
(13.7%) gives a return on net worth of 15.7 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 under "Making Your Own Calculations"
in the Appendix. This analysis should improve
management decisions affecting the profitability of
the nursery operation.

Nursery operators who find this kind of
information useful, but have difficulty finding the
time or energy 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 Field 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.

Field Nurseries 21

Figure 1 -- Total Profitability Model, three samples of Field Nurseries in Florida, 1986, 1987, 1988

-================================== ==========-===s============================================-==

= ---Margin Management .... -----..............................
total gain
***a*******a*** net profit
$337,482 ******"*****
a* $619,212 "*** $131,781 *
$476,051 ***** $250,224 .a**
************** $164,730 *

total costs *
less interest *

* $205,701 *
* $368,987 ****
* $311,322 *
aaaa*aaaaaaaaaaa

S-- -Asset Management
= cash

* a $21,790 *

a $13,904 "** current assets
a $17,617 **a***********"
*************** $503,864 *
+ *a***a $1,406,782 ***
* accts. rec. $1,029,291 *
attatatatat *** a*ata*t*ta*ta ta* a
$8,230 *
$37,140 ****
$27,834 *

* *a
* plant inven. + *
3 ************* *
$470,806 *
S* $1,352,715 "** long-term *
a $981,492 assets *
St***** ****** ***************tttt *
= $166,887 *
= supply inven. $218,668 *.
= t************* $169,521 *

/ a
total gain
it*ttrt*t***it*i
* $337,482 *
* $619,212 ***
* $476,051 *
aaaaaaaaaaaaaa

net margin

39.05X*
** 40.41X****
34.60%* *
aaaaaaaaaaaaaa

Rate of
return

x 19.65%*

Key
*****************
* 1986 *
* 1987 *
* 1988 *
aaaaeeaa"at. "**

total gain **** 15.39%****
************** 13.74%* *
$337,482 ********* *
$619,212 **** *
$476,051 *
ataaaaataaaaa *a asset *
turnover *

/ 0.503 *
***a* 0.381 ***
0.397 *
total assets aaaaaaaaa*aa a
*********i**** *
$670,751 *
*** $1,625,450 ****
S$1,198,812 *
aaaaaaaaaaaaa

= $3,038 ************** RETURN ON =
= $3,024 "" NET WORTH =
= $2,347 ********** =
S************** 23.92%* =
S --Leverage management ------ --------..................................................----............x *** 16.46*
Liability plus 15.67%* =
= current liab. total liab. net worth ********* =
. **********a***** ******* *** ************ x
$7,156 $119,760 $670,751 leverage *
S* $5,872 ******* $105,510 "** $1,625,450 "** factor *
S* S9,682 $147,702 $1,198,812 **i**** =
taa aataaaaa at a aaatatataataa a a "tat atttt a 1.17 a a =
S+ / *** 1.069 *
Long term debt net worth net worth 1.141 *

$112,604 $550,991 550,991 *
$99,638 ***9 $1,519,941 **** 1,519,941 a**a
S* $138,020 $1,051,110 1,051,110 *
3 a****a*********a aaaaaaaaaaaaaa aaaaaaaaaaaaaa

==-------------------------------------------=-----

Field Nurseries

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

..................:,.I:1,~,
.............:::. :: .... :::: :~~;.-~, jj: r-

Field 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, three samples of field nurseries in Florida, 1986, 1987, and 1988 ........... 26
2 Land use indicators, three samples of field nurseries in Florida, 1986, 1987, and 1988 ......... 27
3 Labor use indicators, three samples of field nurseries in Florida, 1986,
1987, and 1988 ............................ ............................. 27
4 Capital use indicators, three samples of field nurseries in Florida, 1986,
1987, and 1988 .............................. ......................... 28
5 Costs by expense category, three samples of field nurseries in Florida, 1986, 1987,
and 1988 ............................ ............. .. ................ 29
6 Percent of total costs by expense category, three samples of field
nurseries in Florida, 1986, 1987, and 1988 ..................................... 30
7 Costs per acre of production area, three samples of field nurseries
in Florida, 1986, 1987, and 1988 ...................... .... ................... 31
8 Costs per dollar's worth of production, three samples of field
nurseries in Florida, 1986, 1987, and 1988 ............................. ....... 32
9 Cost per dollar's worth of sales (no adjustment for change in plant inventory
value), three samples of field nurseries in Florida, 1986, 1987, and 1988 ................ 33
10 Income summary, three samples of field nurseries in Florida, 1986, 1987, and 1988 ........... 34
11 Statement of Financial Position, three samples of field nurseries in Florida,
1986, 1987, and 1988 ..................................................... 34
11 Financial Ratios and other profitability indicators, three samples of field nurseries
in Florida, 1986, 1987, and 1988 .................... ...... .................. 35

Field 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.

Fulltime 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 fulltime
employees 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 operation for comparison
with the findings in this report can be done manually
the information in Appendix Tables 1 and 5. Lines
are provided for entry of your data. Make
calculations for your nursery in Appendix Tables 2,
3 and 4 according to the formulas 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/1C. The slash
mark (/) stands for division. The Table 1A stands
for the A line of Appendix Table 1, and 1C stands
for the C 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 acreage figure
on line E of Appendix Table 1.

Appendix Table 8--divide by your total value of
production figure on line C of Appendix Table 1.

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

Field Nurseries

Formulas for Appendix Tables 10 and 11 are not shown in the tables, but can be completed according to
the following instructions:

Appendix Table 10

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

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 ........

Appendix Table 1, line A
Appendix Table 1, line B
from your beginning and ending supply inventory data,
(not shown previously)
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 N

Appendix Table 11

Line A: Cash on hand ............... Appendix Table 1 line M
Line B: Accounts receivable ........... Appendix Table 1 line L
Line C: Plant inventory .............. Appendix Table 1 line G
Line D: Supply inventory ............. Appendix Table 1 line K
Line E: Total current assets ........... sum lines A,B,C and D
Line F: Machinery & equipment ........ Appendix Table 1 line 1
Line G: Buildings and fixtures .......... Appendix Table 1 line H
Line H: Land ..................... Appendix Table 1 line J
Line I: Subtotal (original costs) ......... sum lines F,G, H, I, J
Line J: Less accumulated depreciation .... from your records (not shown in earlier tables).
(Skip line J if lines F, G, and H are depreciated values. If not, enter accumulated depreciation.)
Line K: Total long term assets ......... line I minus line J
Line L: Total assets ................. sum lines E and K
Line M: Current liabilities ............ from your records, not shown in earlier tables
Line N: Long term liabilities ........... from your records, not shown in earlier tables
Line 0: Total liabilities .............. "sum line M and N
Line P: Net worth .................. line L minus line O
Line Q: Total liabilities and net worth .... sum lines O and P

Denotes that data required for the profitability model.

Thes business analysis calculations can also be done yourself 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

Field Nurseries

APPENDIX TABLES

Table 1--Size of Business: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986
unit sample
...................................................................

1987 1988 Your
sample sample Nursery
.......................................

A Value of own plants sold . .. S
B Change in inventory value . ... S

C Total value of production . ... S

D Total growing area . . .... sq.ft. 862,428
E acres 19.80

F Full-time equivalent persons . number 5.88

3,298,295 2,669,796
75.72 61.29

9.27

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

S 470,806
S 11,763
$ 40,290
S 114,833
S 3,038
S 8,230
$ 21,790

$ 670,751

$ 2,225
S 0
S 725,833

S 728,058

470,806
13,988
40,290
840,667
3,038
8,230
21,790

S 1,398,809 2,340,536 1,598,329

224,914
108,057

332,971

428,809
186,861

615,671

303,082
168,079

471,160

1,352,715
24,527
48,805
145,336
3,024
37,140
13,904

1,625,450

15,243
7,143
692,700

715,086

1,352,715
39,770
55,948
838,036
3,024
37,140
13,904
zz=z=x=====

981,492
14,795
28,712
126,015
2,347
27,834
17,617

1,198,812

8,892
4,167
386,458

399,517

981,492
23,687
32,878
512,473
2,347
27,834
17,617
szs==ssz=

AA Total Capital Managed

Field Nurseries

Table 2--Space Use Indicators: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986 1987 1988 Your
unit sample sample sample Nursery
............................................................................................

Plants sales/sq.ft. growing area(Table 1A/1D) S 0.26 0.13 0.11
Production/sq.ft. growing area. (Table 1C/1D) S 0.39 0.19 0.18

Sales/acre of total nursery area(Table 1A/1E) S 11,360 5,663 4,945
Value of production per acre. (Table lC/1E) S 16,818 8,131 7,687

Plant inventory value per acre. (Table 1G/1E) $ 23,780 17,865 16,014

Plant inventory turnover. (Table 1A/1G) X 47.77 31.70 30.88

Table 3--Labor Use Indicators: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986 1987 1988 Your
unit sample sample sample Nursery

Plant sales per person* . (Table 1A/1F) S 38,233 46,261 33,959
Value of production per person* (Table 1C/1F) S 56,602 66,420 52,792

Growing area per person*. (Table 1D/1F) sq.ft. 146,604 355,828 299,143
Persons per acre growing area (Table 1F/1E) number 0.30 0.12 0.15

Full-time equivalent person (2080 hrs/year)

Field Nurseries

Table 4--Capital Use Indicators:three samples of field nurseries in Florida, 1986, 1987, 1988.

1986
unit sample

Owned capital turnover. .. (Table 1A/10) X 33.5
Managed capital turnover. (Table 1A/1AA) % 16.1

1987
sample

26.4
18.3

1988
sample

25.3
19.0

Your
Nursery

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

Capital owned/acre .(Table 10/1E) S
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 . .(Table
Bldgs, improvements . .(Table
Machinery & equipment .. .(Table
Land . . ... .(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)
1W/1F)

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

1T/1AA)
1U/1AA)
IV/1AA)
W1/1AA)
1X/1AA)
1Y/1AA)
1Z/1AA)

TOTAL . . . . .

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

114,021
237,784

33,879
70,652

80,032
2,378
6,849
142,905

23,780
707
2,035
42,461

X 33.7
% 1.0
% 2.9
% 60.1
X 0.2
% 0.6
X 1.6

X 100.0

175,358
252,503

21,467
30,911

145,934
4,290
6,036
90,409

17,865
525
739
11,068

57.8
1.7
2.4
35.8
0.1
1.6
0.6

100.0

134,323
179,088

19,560
26,078

109,973
2,654
3,684
57,421

16,014
386
536
8,361

61.4
1.5
2.1
32.1
0.1
1.7
1.1

100.0

Field Nurseries 29

Table 5-Dolltr Cost by Expense Categegory: three samples of field nurseries in Florida, 1986, 1987, 1988.

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

LABOR TOTAL . . . .

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

SUPPLIES TOTAL. . . . S

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

OTHER PRODUCTION COSTS TOTAL. . .

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

ADMINISTRATIVE & OVERHEAD COSTS TOTAL .

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

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

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

TOTAL ALL COSTS . . .... ..

1986
unit sample
............................

S 33,654
S 68,744

S 102,398

31,559
1,782
2,579
3,223
1,888
4,435

45,466

4,015
8,672

12,686

2,145
8,154
2,076
1,787
3,624
1,848
5,013
4,197

28,845

189,396

11,413
4,893
0
80,490

96,796

286,191

Your
Nursery

1987
sample

42,014
115,008

157,022

76,969
6,787
10,026
7,229
6,683
13,117

120,810

13,737
11,181

24,917

3,317
8,989
3,291
3,332
8,883
3,605
8,391
11,194

51,003

353,752

12,696
2,539
0
195,054

210,289

564,041

1988
sample

42,536
120,655

163,191

43,492
4,734
5,849
6,760
5,535
10,196

76,566

8,874
11,863

20,737

1,304
9,516
2,620
3,364
3,723
3,197
3,352
9,540

36,616

297,110

10,344
3,867
0
143,857

158,069

455,179

30 Field Nurseries

Table 6--Percent of Total Costs by Expense Category: three samples of field nurseries in Florida, 1986, 1987, 1988.

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

LABOR TOTAL . . . .... ..

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

SUPPLIES TOTAL. . . ... ..

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

OTHER PRODUCTION COSTS TOTAL . .... .

Travel. . . . .. ..
Insurance . . . .... ..
Telephone ...... .... ...... X%
Electricity .............. ..
Taxes & liscenses . . .... ..
Advertising . . . . X
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. . . ... X

TOTAL ALL COSTS . . .... ..

1986
unit sample

11.8
24.0

35.8

11.0
0.6
0.9
1.1
0.7
1.5

15.9

1.4
3.0

4.4

0.7
2.8
0.7
0.6
1.3
0.6
1.8
1.5

10.1

66.2

4.0
1.7
0.0
28.1

33.8

100.0

1987
sample

7.4
20.4

27.8

13.6
1.2
1.8
1.3
1.2
2.3

21.4

2.4
2.0

4.4

0.6
1.6
0.6
0.6
1.6
0.6
1.5
2.0

9.0

62.7

2.3
0.5
0.0
34.6

37.3

100.0

1988
sample

9.3
26.5

35.9

Your
Nursery

9.6
1.0
1.3
1.5
1.2
2.2

16.8

1.9
2.6

4.6

0.3
2.1
0.6
0.7
0.8
0.7
0.7
2.1

8.0

65.3

2.3
0.8
0.0
31.6

34.7

100.0

Field Nurseries 31

Table 7--Costs Per Acre of Growing Area: three samples of field nurseries in Florida, 1986, 1987, 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 & 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 . . . .

1986
unit sample

5 1,700
$ 3,472

S 5,172

$ 1,594
S 90
$ 130
$ 163
$ 95
S 224

S 2,296

203
438

641

108
412
105
90
183
93
253
212

1,457

9,566

576
247
0
4,065

4,889

14,455

Your
Nursery

1988
sample

694
1,969

2,663

1987
sample

555
1,519

2,074

1,017
90
132
95
88
173

1,596

181
148

329

44
119
43
44
117
48
111
148

674

4,672

168
34
0
2,576

2,777

7,449

710
77
95
110
90
166

1,249

145
194

338

21
155
43
55
61
52
55
156

597

4,848

169
63
0
2,347

2,579

7,427

32 Field Nurseries

Table 8--Cost Per Dollar's Worth of Production: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986
unit sample
Operat......r...s salr.........................c0.1

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

LABOR TOTAL . . . ... ..cents

Plants & seeds . .
Containers . .
Peat & soi . .
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 & liscenses .
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

10.1
20.6

30.8

1987
sample

6.8
6 18.7

25.5

9.5
0.5
0.8
1.0
0.6
1.3

13.7

1.2
2.6

3.8

0.6
2.4
0.6
0.5
1.1
0.6
1.5
1.3

8.7

56.9

3.4
1.5
0.0
24.2

29.1

86.0

12.5
1.1
1.6
1.2
1.1
2.1

19.6

2.2
1.8

4.0

0.5
1.5
0.5
0.5
1.4
0.6
1.4
1.8

8.3

57.5

2.1
0.4
0.0
31.7

34.2

91.6

1988
sample

9.0
25.6

34.6

Your
Nursery

9.2
1.0
1.2
1.4
1.2
2.2

16.3

1.9
2.5

4.4

0.3
2.0
0.6
0.7
0.8
0.7
0.7
2.0

7.8
==========
63.1

2.2
0.8
0.0
30.5

33.5

96.6

Field Nurseries 33

Table 9--Cost Per Dollar's Worth of Sales: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986
unit sample
15.. 0...

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

LABOR TOTAL . . . ... .cents

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

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

SUPPLIES TOTAL . . .. .cents

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

.cents
.cents

.cents

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

.cents

.cents

.cents
.cents
.cents
.cents

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

TOTAL ALL COSTS . . . .cents

15.0
30.6

45.5

14.0
0.8
1.1
1.4
0.8
2.0

20.2

1.8
3.9

5.6

1.0
3.6
0.9
0.8
1.6
0.8
2.2
1.9

12.8

84.2

5.1
2.2
0.0
35.8

43.0

127.2

1987
sample

9.8
26.8

36.6

17.9
1.6
2.3
1.7
1.6
3.1

28.2

3.2
2.6

5.8

0.8
2.1
0.8
0.8
2.1
0.8
2.0
2.6

11.9

82.5

3.0
0.6
0.0
45.5

49.0
=131.5===
131.5

1988 Your
sample Nursery

14.0
39.8

53.8

14.3
1.6
1.9
2.2
1.8
3.4

25.3

2.9
3.9

6.8

0.4
3.1
0.9
1.1
1.2
1.1
1.1
3.1

12.1

98.0

3.4
1.3
0.0
47.5

52.2

150.2

Field Nurseries

Table 10--Income Summary: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986 1987
unit sample sample
............................................................... ....
A Value of own plants sold ........ .. 224,914 428,809
B Change in plant inventory value. ... 108,057 186,861
C Increase in supply inventory ...... .. 549 67
D Miscellaneous cash income . ... 3,962 3,474

E TOTAL GAIN . . . .. 337,482 619,212

F Deduct cash costs except operator's salary S (155,741)
G Deduct non-cash costs except interest on ca S (16,306)

H Total Deductions . . ... (172,047)

I NET NURSERY INCOME . . .. S 165,435
J Operator's salary or time value ... $. 33,654

K RETURN TO CAPITAL. . . ... S 131,781
L --Percent. . . . ... 19.65

(311,739)
(15,235)

(326,974)

292,238
42,014

250,224
15.39

1988
sample

303,082
168,079
82
4,809

476,051

(254,574)
(14,211)

(268,786)

207,266
42,536

164,730
13.74

Your
Nursery
.. .. .

Table 11--Statement of Financial Position: three samples of field nurseries in Florida, 1986, 1987, 1988.

1986 1987 1988 Your
unit sample sample sample Nursery

---Current Assets---
A Cash/checkbook balance .......... & 21,790 13,904 17,617
B Accounts receivable. ........... $ 8,230 37,140 27,834
C Plant inventory value. ...... .. $ 470,806 1,352,715 981,492
D Supply inventory value .......... $ 3,038 3,024 2,347

E Total CURRENT Assets ........... 503,864 1,406,782 1,029,291

---Long Term Assets---
F Machinery & Equipment. .......... $ 80,715 91,151 76,057
G Buildings & Fixtures ........... $ 18,622 34,423 35,480
H Land .. . .. .. .. S 114,833 145,336 126,015

I Sub-total (original cost). ........ 214,171 270,911 237,551

J Less Accumulated Depreciation. ...... S (47,284) (52,242) (68,029)

K Total LONG TERM Assets .......... S 166,887 218,668 169,521
ssssflSf= agLStS: WLuasaS= n
L TOTAL ASSETS ............. .. S 670,751 1,625,450 1,198,812

---Liabilities---
M Current Liabilities. ........... $ 7,156 5,872 9,682
N Long Term Liabilities. .......... S 112,604 99,638 138,020

0 Total LIABILITIES. ............. S 119,760 105,510 147,702

P NET WORTH. ................. S 550,991 1,519,941 1,051,110

0 TOTAL LIABILITIES & NET WORTH. .. ... S 670,751 1,625,450 1,198,812

Field Nurseries

Table 12--Financial Ratios and Other Profitability Indicators: three samples of field nurseries in Florida,
1986, 1987, 1988.

1986 1987 1988 Your
simple sample sample Nursery
..C oa........................................................................................ -
Cash on Hand/Current Liabitities(Table 11A/11M) 3.05 2.37 1.82

Accounts Recievable/Saes. .

Inventory Turnover . .

Current Value/Cost L.T. Assets

Quick Ratio . .

Current/Long Term Liabilities.

Total Assets/Total Liabilities

Net Profit Margin . .

Asset Turnover Ratio . .

Return to Capital. . .

Leverage Factor . .

Return on Net Worth . .

.(Table 11B/11A)

.(Table 11A/11G)

.(Table 11A/11M)

.(Table 11A+11B/11M)

.(Table 11M/11N)

.(Table 11L/110)

.(Table 10/10E)

.(Table 10E/10L)

.(Table 10K/10)

.(Table 11P/11P)

.(Table 10K/11P)

0.04

0.48

0.78

4.20

0.06

5.60

39.0%

0.50

19.65%

1.22

23.9%

0.09

0.32

0.81

8.69

0.06

15.41

40.4%

0.38

15.39%

1.07

16.5X

0.09

0.31

0.71

4.69

0.07

8.12

34.6%

0.40

13.74%

1.14

15.7%

~5 ;

::iiiK
~: ~
::::- t .v

;.crC~;
~-:L:
i +
W~~i ::::: ~::::::

':OL~~.

rP~1~YP~t~:
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	Front Cover
	Title Page
	Abstract
	Acknowledgement
	Table of Contents
	Main
	Appendix

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
158	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file