Profitability is the difference between the value of the goods produced by the farm business and the associated costs for producing them. In the Financial Management Factsheet Understanding Profitability Using the Balance Sheet and Income Statement, UW-Extension Taylor County Agriculture Educator Sandy Stuttgen and UW-River Falls/UW-Extension Farm Business Specialist Simon Jette-Nantel shares how the balance sheet and income statement are used to measure profitability.
Understanding the Farm Income Statement-Part 1 is one factsheet in the Financial Management Factsheet series designed to help individuals understand the basic principles of financial record keeping. Additional factsheets in the series include:
- Understanding The Farm Financial Model
- Understanding the Farm Business Balance Sheet, Part 1 and Part 2
- Understanding the Farm Income Statement, Part 1 and Part 2
- Understanding Profitability Using the Farm Business Balance Sheet and Income Statement