Managing Financial Risk: Repayment & Solvency In this Ranch Right webinar, we zoom out from day-to-day cash flow and focus on the long-term side of financial risk: your ability to reliably service term debt and use equity to secure both your debts and your future. We’ll briefly refresh cash flow and liquidity concepts, then dig into repayment risk and solvency risk: what happens when profits fall short, how debt payments really create exposure, and how equity is both an investment in future growth and safeguard against hard times. The goal isn’t avoiding debt or risk altogether. It’s using debt intentionally, strengthening our capacity for repaying debt, and making sure today’s decisions protect and promote tomorrow’s reward. You’ll learn how to: ✅ Understand repayment risk as recurring payments versus recurring income ✅ Use term debt coverage to measure capacity before taking on more debt ✅ Stress-test profitability with income sensitivity ✅ Understand how using savings to make payments transfers risk into the future ✅ Measure long-term solvency using debt-to-asset and total equity ✅ Protect equity so it can absorb shocks, buy time, and create opportunity More from the Ranch Right Risk Management Series: 1. Foundations of Financial Risk https://youtu.be/MyB4qq5Z75U?si=7-62J-E9LqrT1mXt 2. Managing Cash Flow & Liquidity Risk https://youtu.be/bmBs0cyGBvQ 3. Managing Repayment & Solvency Risk (this webinar)

In this Ranch Right webinar, we zoom in on the short-term side of financial risk: your ability to keep your business operating through the next year. We’ll walk through practical ways to measure your burn rate, days of cash, working capital, and net inventory value so you can spot weaknesses early and use short-term credit wisely. The goal is not perfection. It’s building enough cushion and clarity to manage your financial risk while you work hard for the reward. You’ll learn how to: ✅ Measure financial risk by comparing obligations and capacity ✅ Separate cash flow risk (immediate) from liquidity risk (next 12 months) ✅ Use a simple cash budget see cash crutches before they happen ✅ Calculate burn rate and days of cash so you know how much fuel you have in the tank ✅ Use working capital and net inventory value to measure short-term equity More from the Ranch Right Risk Management Series: 1️⃣ Foundations of Financial Risk https://youtu.be/MyB4qq5Z75U?si=7-62J-E9LqrT1mXt

In this Ranch Right webinar, we lay the groundwork for understanding financial risk in your farm or ranch business. Instead of treating risk as something vague or scary, we define it in practical terms: the chance that your results will be different from what you expected, especially when it comes to your ability to meet financial obligations and keep the operation running. We’ll help you understand the financial risks facing your operation and identify best practices for managing each type of risk. You’ll learn how to use a handful of simple metrics to measure cash flow, liquidity, repayment ability, and solvency so you can spend less time worrying about what you can’t control and more energy creating a proactive plan to protect your business and your future. You’ll learn how to: ✅ Understand the difference between production and financial risk ✅ Apply the Circles Concern, Influence, and Control to your financial decisions ✅ Define financial risk in terms of obligations and capacity ✅ Use cash, working capital, profitability, and equity to mitigate specific types of risk ✅ Set “gold standard” goals for cash flow, liquidity, repayment capacity, and solvency

Fueling Your Business with Cash Flow In this Ranch Right webinar, we break down cash flow, one of the most overlooked yet vital parts of ranch financial management. While profit tells you how much value your business is creating, cash flow shows how you turn that value into cash that keeps the lights on and your business in action. Strong cash flow builds flexibility, independence, and resilience, giving you the power to act on opportunities instead of reacting to challenges. We explain how to read and use a Cash Flow Statement, how it connects to your Profit & Loss Statement and Balance Sheet, and why understanding cash movement is essential for keeping your business running smoothly. You’ll learn how to manage liquidity, plan for financing needs, and use cash flow to empower the strategy you created in your Profit Plan. You’ll learn how to: ✅ Understand the structure and purpose of the cash flow statement ✅ Distinguish between profit and cash, and why they don’t always match ✅ Project future cash flow to plan for growth and stability ✅ Use cash strategically for both defense (risk management) and offense (opportunity) ✅ Leverage tools like QuickBooks and the Ranch Right’s Cash Flow Planner to make confident, data-driven decisions Cash flow is the fuel that keeps your ranch’s financial engine running. By getting the right parts on the Balance Sheet, building a powerful engine with the P&L, and keeping the tank full with strong Cash Flow, your business will get your closer to your goals with each passing year. More from the Ranch Right Financial Literacy Series: 1️⃣ The Power of Profit: Understanding Your Profit & Loss Statement 2️⃣ Planning for Profit: Using the P&L to Create a Plan for Reaching Your Goals 3️⃣ Fueling Your Business with Cash Flow