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How To Calculate Poultry Farm Net Worth (Easy Way)

Poultry farm balance sheet calculating net worth

Are you looking for a user-friendly online net worth calculator & balance sheet template for your poultry farm business plan?

Calculating poultry farm net worth

Net worth is the result of ¹substracting the total expense of all binding financial obligations (aka short, mid and long-term liabilities) held by your poultry farm, away from the ²total current realisable market value of all assets (short, mid and long term) held by your poultry farm.

i.e. Total market value of business assets – total cost of business liabilities = Net worth.

This is a marker of intrinsic commercial value. The whole figure is the sum of the parts.

Net worth is used by investors, specifically, as a primary indicator of a business’ financial health and therefore credit worthiness.

The financial instrument or template used to calculate net worth is called a balance sheet (see the image at the top right of this article, for example).

Whilst investors use the balance sheet exercise to guide investment decisions…

…poultry business owners and entrepreneurs should use the balance sheet to identify areas they could increase their net worth by bootstrapping.

The poultry farm balance sheet

The poultry farm balance sheet is a simple comparative exercise in which asset value is sized up against liability cost.

Every business should have one because the balance sheet provides an estimate of just how firm the financial foundations of your business really are.

And especially in the case of agribusinesses where economic downward pressures have been known to easily precipitate insolvency – a balance sheet provides an acid test for the avoidance of financial calamity.

Why it’s important to calculate your net worth as a poultry entrepreneur

Net worth tells you just how exposed your business and personal assets are to being repossessed should your business fortunes turn against you.

It’s therefore critical to take a glance at worst case when planning to preemptively build strategic defence against the hostility of triggering an insolvency pathway.

Methods for calculating poultry farm net worth

When calculating your net worth as a poultry entrepreneur, use one of the methods below:

1. Manual balance sheet exercise

Steps

  1. Pick a reputable template, like the one in this post.
  2. Estimate current market value for each asset (quoting the method used)
  3. Fill in the template for assets and liabilities.
  4. Calculate the trade-off in each category between asset value vs. liability cost.
  5. Determine a final net worth value.

2. Try The Poultry Farm New Worth Calculator & Balance Sheet Template

This method involves using a user-friendly fill-in-the-blanks form for calculating net worth using a detailed balance sheet template. Plus, this calculator is free to use and will even email you the data after each use:

  • MM slash DD slash YYYY
    Choose a start date for this Balance Sheet planning exercise
  • MM slash DD slash YYYY
    Choose an end date for this Balance Sheet planning exercise

  • ASSETS

    Assets are both physical and non-physical possessions of your business. Items that theoretically and practically may hold value. They are typically used in the operations of your business and therefore contribute to the income generation of your business.
  • Current Assets
  • Cash reserves held by your business (consider, however, the value of cash depreciates over time)
  • These are credit arrangements which your business has dealt out to customers and clients - in other words, monies owing to you, which you expect to come in soon)
  • This is product stock held on balance on-premises. This includes products that you have made that are intended for sale, but as yet in storage.
  • These are expenses which you are planning to incur and have paid for in advance
  • Investments that your business holds that offer potential exit value, upon planned divestment or sale - within one year
  • Overall value of all assets owned by your business
  • Long Term Assets
  • Investments that your business holds that offer potential exit value, upon planned divestment or sale - beyond one year
  • The current value of buildings, equipment and other major physical items owned by your business
  • Minus the money that you have accumulated for the purpose of replacing equipment and other physical assets at the end of their useable life
  • Assets that are not able to be touched, nor do they fall into the categories above. e.g. patent
  • Overall value of fixed assets
  • Other Assets
  • Income tax which is due for the period, but unpaid
  • Any other type of business asset you can think of?
  • Total current value of other assets owned by the business
  • Total value of all business assets

  • Liabilities & Owner's Equity

  • Current Liabilities
  • Amounts owing to suppliers who have extended credit arrangements
  • Loaned money which should be paid back to the lender within 12 months
  • Tax monies payable to the revenue department - yet unpaid
  • Salaries and wages of staff that is held, but yet unpaid
  • Revenue received for products and services that as yet not delivered to the customer
  • Amount of principal capital borrowed on loans and to be paid for within one year (12 months)
  • Total value of all liabilities or monies owed by your business
  • Long Term Liabilities
  • Money that is due to be paid back by your business to its creditors beyond 12 months
  • Taxes due for current period of accounting
  • Can you think of any other liabilities that would belong in this category?
  • Total value of monies owed by your business to its creditors, but not due for repayment within 12 months
  • Owner's Equity
  • Personal monies that you have injected into your business
  • Cash that you have prepared to pay yourself as personal wages, but you are yet to draw down on
  • Can you think of any other value that you have taken out of your own pocket and have donated into the possession of your business?
  • Total amount of money that is held by your business, which you have personally donated
  • Total monies owed by your business to its creditors, shareholders and your - the current owner
  • The overall result of substracting your total liabilities and owner's equity from total asset value

  • Common Financial Ratios

  • The ratio or relation of total business debt against total business value held
  • The total value of assets held by the business divided by the total value of monies owed
  • Total value of assets held by the business minus the total amount of monies owed
  • Total business assets divided by the total value contributed by you - the current business owner
  • Total business debt divided by the total value of money contributed to the business by you - the current owner

Remember…

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About The Author

Temi Cole
Temi Cole Author, The Big Book Project Thanks for visiting my website. "Let's make poultry profitable together!" Begin by becoming a subscriber to my premium newsletter, online courses, consulting and software. Within this site you'll find 300+ learning resources inc. articles, content hubs, sample plans, data sets, calculators and templates. Take a look around and enjoy the conversation.. My Story Start Here Free eBook

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