Financial Analysis and Planning in Agribusiness

These flashcards cover key concepts and vocabulary related to financial analysis and planning in agribusiness, as discussed in the lecture.

3C Statement Method

A financial analysis technique that includes comparison of current, comparative, and common size statements.

Financial Ratios

Quantitative relationships between financial statement items, used to analyze financial performance.

Break-even Analysis

A calculation to determine the level of sales needed to cover costs, leading to no profit or loss.

Trend Analysis

An evaluation method that examines financial data over a period to identify patterns or trends.

Decomposition Analysis

The process of breaking down financial ratios into their individual components for detailed examination.

Contribution to Overhead (CTO)

The amount remaining after variable costs are subtracted from sales revenue, which contributes to covering fixed costs.

Fixed Costs (FC)

Costs that do not change with the level of production or sales, such as rent.

Variable Costs (VC)

Costs that vary directly with changes in the level of production, such as utilities.

Operating Budget

A financial plan that outlines expected revenues and expenses over a specific period.

Capital Budget

A plan that details the firm’s expected expenditures for capital items such as buildings and equipment.

Cash Budget

A detailed forecast of a firm's cash inflows and outflows during a specific period.