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Financial Metrics To Focus On with Dr. David Kohl [episode 57]


header graphic Financial Metrics To Focus On with Dr. David Kohl [episode 57]

Listen to Financial Metrics To Focus On with Dr. David Kohl on: Apple Podcasts | Spotify | Your platform of choice  



Dr. David Kohl is back on the podcast today to discuss key financial metrics for ranch operations. With his background in agriculture, finance, and entrepreneurship, Dr. Kohl shares why you should be paying attention to your net profit margin, debt coverage ratio, net operating income, working capital, operating expense revenue, and debt-to-asset ratio. Dr. Kohl and host John Haskell break down what these KPIs mean and what ratios and percentages to aim for. Dr. Kohl also emphasizes how, especially in agriculture, there is no one-size-fits-all approach when it comes to these financial factors and the importance of understanding how they all work together to create balance.


In this episode, Financial Metrics To Focus On with Dr. David Kohl, we cover: 

  • Examples of non-financial factors that can impact credit

  • What net profit margin is and what percentage to aspire to

  • Breaking down debt coverage ratio, risk management, and net operating income

  • The importance of knowing your working capital and aiming for at least 25%

  • Operating expense revenue and debt-to-asset ratios

  • Understanding how all of these KPIs work together to create balance and ensure overall financial health


Meet Dr. David Kohl:

Dr. David Kohl is an academic Hall of Famer in the College of Agriculture at Virginia Tech, Blacksburg, VA. Dr. Kohl has keen insight into the agriculture industry gained through extensive travel, research, and involvement in ag businesses. He has traveled over 10 million miles, conducted more than 7,000 presentations, and published more than 2,500 articles in his career. Dr. Kohl’s wisdom and engagement with all levels of the industry provide a unique perspective on future trends.

  

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More about the Ranchonomics podcast:  

Welcome to Ranchonomics, where we empower you to build a better ranch and transform your operation into a thriving business. This podcast is brought to you by Ranch Right LLC, and together we will look at essential strategies, mindsets, and processes needed to take command of your financials and master the business metrics that make all the difference. If you are ready to start winning at ranching, then you are in the right spot. 


With each episode of Ranchonomics, you will hear inspiring success stories, gain simple yet powerful financial literacy tips, and listen to insightful interviews with industry experts and real-life practitioners. 


Whether you are a seasoned rancher or just starting out, we believe that managing a ranch shouldn't mean drowning in paperwork or missing out on valuable opportunities. Our mission is to help you see the link between your daily ranching operations and your financials that allow you to go from chaos to clarity and achieve your goals. 


Join us as we explore the intersection of ranching and finance, helping you understand your numbers and make informed decisions that propel your business forward. 

Subscribe now and start your path to a more profitable, less stressful ranching experience with Ranchonomics. It's time to harness the full potential of your operation. 

 

Make sure to hit subscribe/follow so you never miss an episode! 

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