Title: Assets of 33 citrus packinghouses, 1951
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Title: Assets of 33 citrus packinghouses, 1951
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Creator: Tennant, J. L.
Publisher: University of Florida, Agricultural Experiment Station
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JJ


ASSETS


OF 33 CITRUS


PACKINGHOUSES,


By
J. L. Tennant
Agricultural Economist


ion


Current
Assets

Securities

Fixed
Assets


.'.-. *.... ., ,.** '.. ,: |



Fig. 1.-Assets per 1,000 Boxes of Fruit Handled







A Study Conducted with Funds Provided
by the Research and Marketing Act






University of Florida
Agricultural Experiment Station
Gainesville, Florida
November 15, 1952


1951


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APR 28 1953

Special Report
Agricultural Economics
Series No. 52-10


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ASSETS OF 33 CITRUS PACKINGHOUSES, 1951


Purpose

The purpose of this report is to indicate the capital invested in a -

Florida citrus packinghouse and the distribution of this capital to each asset.

The analysis is based on the 1950-51 financial statements of 33 firms. The

fiscal year of each firm ended between July 1 and September 30. The figures

for land, buildings and equipment are the original cost plus improvements.

Some operators estimate the replacement cost of these fixed assets is 20 to

25 percent above this amount.

Assets per Firm

The average investment per firm was about $709,000. Eight firms with

less than 1250,000 capital each averaged about $167,000; 11 firms with capital

between $250,000 and $499,000 averaged about $362,000; five firms with capital

between $500,000 and $999,000 averaged about $733,000; and nine firms with

capital of $1,000,000 or more averaged about '1,602,000, Table 1.

For the 33 firms packinghouse machinery was 17 percent of the total; pro-

duction and hauling equipment, 15 percent; land and buildings, 13 percent;

cash, 13 percent; receivables from growers, 11 percent; and ownership in other

citrus companies, 11 percent. The eight firms with less than $250,000 capital

had only three percent of their total assets in stocks, bonds and ownership in

other citrus plants and each of the other capital groups had 17 percent or more

in such securities. The firms in the lowest capital group also had a larger

share of the total capital in land, buildings, packinghouse machinery and pro-

duction and hauling equipment.

Individual firms differed widely in the share of the total capital which

was in a specific asset, particularly cash, receivables from growers, receivables

from others, securities, and production and hauling equipment. The principal





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reasons are: practices regarding advances to growers; collection policies on

fruit sold; the extent to which ownership in processing facilities has been

undertaken; the accumulation of reserves in the form of stocks, bonds or other

securities; and the extent to which grove and harvesting services are provided,

Table 2.

Cash.--Nine firms had over $80,000 each in cash, ranging from a low of

$89,000 to a high of $857,000. These nine firms had 79 percent of all the cash

assets of the 33 firms. The average for the nine was $260,7U4.5U. Omitting

the firm with the largest amount in cash, the average for the other eight was

$186,218.27. The other 24 firms had under '60,000 each in cash varying from

$2,500 at two firms to over $55,000 at three firms. The average was $25,806.60.

Twelve firms had less than five percent of the total assets in cash and

seven of these 12 had less than three percent. At five firms over 20 percent

of the assets were cash.

Receivables.--At seven firms less than five percent of the assets was

in accounts and notes receivable and at nine firms over 20 percent. Over two-

thirds of the receivables were due from growers, 30 percent from handlers and

others, and one percent from employees.

The average for the 33 firms was $119,479.26 of which $82,000.65 was

advances to growers, $992.04 advances to employees, and $36,481.57 unpaid

commercial accounts. Two firms had no money due from growers, six firms had

under $10,000 each in growers' accounts and 10 firms had over $100,000 each

in growers' accounts. Advances to employees were small with 10 firms having

no money owed by employees, 10 firms with less than $1,000 and five firms with

over $2,000 due from employees. Three firms had no accounts receivable from

others, 16 firms had less than $10,000 each and four firms had over $100,000

each.









Table 2.-Share of Total Capital in Each Asset,
33 Citrus Packinghouses, Florida, 1951.

Share of Total Capital


Under 5- 10- 15- 20- 30%
9% 14% 19% 29% & over
Number of Firms
Asset
Cash 12 6 6 4 2 3
Receivables
Growers 11 4 8 3 5 2
Employees 33 -
Others 23 6 2 2
Inventory 10 14 8 1 -
Prepaid Expense 33 -
Securities
Stocks, Bonds, etc. 26 1 3 1 2 -
Other Citrus Companies 16 6 4 1 5 1
Fixed
Land,Buildings 8 13 3 9 -
Packinghouse Machinery 6 8 8 9 2
Production, Hauling, Equipment 1 9 8 6 5 4



Inventory.--The average inventory was about $56,000. The range was from

under $10,000 at five firms to over $100,000 at five firms and between $50,000

and $100,000 at six firms. The size of the inventory tended to be in line with
the quantity of fruit handled except for a few firms where package materials

and other supplies were bought ahead in anticipation of higher prices the

following year.

Securities.--The differences between these firms regarding the amount in

stock certificates, bonds and other securities were wide. Five firms had no

investment in other property; 15 firms had less than $40,000; and 13 firms had

over $100,000 each.

Thirteen firms held 94 percent of the securities owned by these 33 firms.

The average for these 13 was about $300,000 per firm and the range was from

$101,000 to $984,000. Ten held stocks, bonds, savings certificates and similar

securities and 12 held ownership in other citrus companies, chiefly processing






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plants. Stocks, bonds, etc., made up about one-third of these securities and

ownership in other citrus plants two-thirds.

The other 20 firms held six percent of the securities and averaged about

$12,500 per firm. The range was from nothing to 539,000. Five of the 20 had

no securities, six had stocks and bonds only, six had investments in other

citrus companies only, and three had stocks, bonds and investments in other

citrus companies.

Land and Buildings.--The average investment in land and buildings includ-

ing the office and office fixtures was about $91,000 per firm. Twelve firms

had less than $50,000 in this asset and 10 firms had over $100,000 each. The

range was from $10,000 and $23,000 at two firms to $367,000 at one firm.

Variation between firms is due to the size of the building, the time at which

the land was purchased and the building erected, improvements added since

construction, and the location. For many of the 33 firms the estimated invest-

ment in real estate probably is 20 to 25 percent under the replacement cost.

Packinghouse Machinery.--The investment in packinghouse machinery averaged

about $120,000 per firm. It was under $50,000 at eight firms and over $140,000

at eight. The average was 31 percent higher than the average investment in

land and buildings, but at 12 of the 33 firms the value of the machinery was

about equal to or less than the value of the land and buildings.

Production and Hauling Equipment.--The amount of money in production and

hauling equipment is related closely to the grove and harvesting services

offered to growers. The average for the 33 firms was $103,000. At four firms

the investment in this asset was under $30,000 and at 13 firms it was over

$100,000. The range was from $7,000 to $400,000.





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Assets Per 1,000 Boxes

All Fruit.--The assets for the 33 firms averaged $1,201.06 per 1,000 boxes

of all fruit. The 3-season average of all fruit handled was 590,410 boxes per

firm. Omitting the investment in securities leaves assets of $989.70 per 1,000

boxes. Omitting securities and production and hauling equipment leaves assets

of $814.67 per 1,000 boxes, Table 3, Figure 1.

Nine firms handling from 300,000 to 499,000 boxes each had the lowest

average assets at 1836.09 per 1,000 boxes. Eight firms handling 500,000 to

899,000 boxes and 7 firms handling over 900,000 boxes had the highest average

investment per 1,000 boxes.

Differences between the volume groups are due largely to variations in

the assets held as cash, securities, packinghouse machinery, production and

hauling equipment, and to some extent as receivables from growers and from

others.

Packed Fruit.--These firms averaged $2,265.50 per 1,000 boxes of fruit

packed. The 3-season average of fruit packed was 313,006 boxes or 53 percent ,

of the total fruit handled. The three lower volume groups packed 56 to $7

percent of the fruit handled and the seven firms with over 900,000 boxes each

packed on the average 48 percent of the fruit handled.

The assets of the nine firms handling from 300,000 to 499,000 boxes average

about $1,500 per 1,000 boxes packed and those of the seven firms handling over

900,000 boxes averaged about $2,700. The other two volume groups had average

assets between these two amounts.


i





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Table 3.-Assets per 1,000 Boxes of Fruit, 33 Citrus Packinghouses,
Florida, 1951.

Note: The volume of fruit is the 3-season average, 1948-49, 1949-50 and 1950-51.

All Fruit All Under 300,000- 500,000- 900,000
1 3/5 Bu. Boxes Volumes 300,000 499,000 899,000 & Over
Firms No. 33 9 9 8 7
(a) Assets per 1,000 Boxes of All Fruit
Boxes Handled per Firm 590,410 225,219 394,424 662,581 229,, 41
Cash $ 152.23 $ 140.31 $ 61.59 $ 322.91 $ 87.31
Receivables
Growers 138.90 123.65 97.09 129.53 165.50
Employees 1.68 1.74 2.05 2.03 1.30
Others 61.79 25.14 31.12 44.31 93.84
Inventory 93.97 57.42 69.93 91.09 11.26
Prepaid Expense 10.16 14.50 11.88 7.73 9.93
Securities
Stocks, Bonds, etc. 76.24 15.44 22.09 50.99 128.46
Other Citrus Companies 135.12 54.98 138.64 193.02 116.87
Fixed
Land, Buildings 153.79 176.85 142.66 162.64 147.50
Packinghouse Machinery 202.15 234.54 11.93 197.26 233.50
Production, Haul, Equip. 175.03 197.50 14.L11 143.99 201.61
Total $1,201.06 $1,042.07 $ 836.09 $1,305.50 $1,300.08


(b) Assets per 1,000 Boxes of Fruit Packed

Boxes Packed per Firm 313,006 128, 75 223,236 373,725 596,984
Cash $ 287.15 $ 245.97 $ 108.81 $ 572.49 $ 180.02
Receivables
Growers 262.00 216.75 171.55 229.65 341.23
Employees 3.17 3.05 3.62 3.59 2.68
Others 116.55 k4.06 54.99 78.56 193.48
Inventory 177.25 100.67 123.56 161.50 35.60
Prepaid Expense 19.17 25.42 20.98 13.71 20.46
Securities
Stocks, Bonds, etc. 143.81 27.07 39.03 90.39 164.86
Other Citrus Companies 254.86 96.37 244.96 342.22 240.96
Fixed
Land, Buildings 290.09 310.03 252.06 288.35 304.12
Packinghouse Machinery 381.30 411.15 203.07 349.71 481.45
Production, Haul, Equip. 330.15 346.22 254.61 25g.28 415.69
Total $2,265.50 $1,826.76 $1,477.24 $2,385.45 $2,680.55


JLT:bk 11/4/52
Exp. Sta., Ag. Ec.


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