57. Financial Metrics To Focus On with Dr. David Kohl

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.

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In this episode, 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

Connect with Dr. David Kohl:

• Follow on LinkedIn

Connect with Ranch Right:

• Subscribe on YouTube
• Follow on Instagram @ranchrightllc
• Follow on Facebook
• Check out the website

Resources & Links:

• Episode 56. Commonalities of Successful Farmers & Ranchers with Dr. David Kohl
• Book a Free Discovery Call to Learn More
• Ranching for Profit
• Ranching.FYI
• Wally Olson, Olson Ranch LLC

Mentioned in this episode:

His Cavvy Foundation was established as a way to help families and individuals in the ranching community with serious medical issues. Click below to learn more, apply for assistance, or nominate a family in need.

His Cavvy Foundation