Commercial Ranching Financial Model
Originally published: 03/12/2024 14:07
Publication number: ELQ-24121-1
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Commercial Ranching Financial Model

Model depicts ranching business. Livestock include both large stock & small stock. Business involves animals purchase, fattening & sale as cuts or live exports.

Description
The financial model illustrates a commercial ranching business. The model includes both large stock (cattle) and small stock (sheep and goats). This is a 3-in-1 ranch which includes feedlot, slaughterhouse (abbatoir) as well as a rendering facility to take care of waste and byproducts to produce animal feed.


For the model, animals are purchased from farmers and fattened in feedlots over 90 days for cattle and 30 days for sheep and goats. The number of days in feedlot can be adjusted accordingly in the assumptions.


The purchase and sell price per kg for the animals can also be adjusted. In the model, one can adjust the carcass efficiency ratio, proportion for live exports as opposed to slaughtered, proportion of slaughtered to be deboned as opposed to being sold as full swinging carcasses. Small stock are not deboned in the model due to the smaller body size.


The model also shows production of animal feed as well as a detailed worforce and associated labour costs.


There is a detailed capital expenditure tab to show costs of construction, slaughterhouse machinery and farm equipment, feedlot pens, solar farm to power the operations etc.


There is a tab on sensitivity analysis where one can adjust a few factors (by growing or reducing by a percantage to test how IRR, NPV and payback periods would react.


A few financial ratios have been graphed such as asset turnover, interest coverage ratio, DSCR, Debt to Equity, ROA, ROE, Current Ratio, Quick Ratio, Assets to Equity, Cost to Income etc.

This Best Practice includes
One Excel Document

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