Type of indicator

Quantitative

Relative dimension and aggregated criteria

Economic sustainability: Financial wealth: Solvency

Description

  • This indicator refers to the farm’s ability to meet obligations in the short term and repay all liabilities if all current assets are
  • The indicator is calculated by dividing the value of liabilities by the value of current
  • Liabilities and current assets are valued at the end of the calendar

Indicator calculation

π‘‡π‘œπ‘‘π‘Žπ‘™ π‘™π‘–π‘Žπ‘π‘–π‘™π‘–π‘‘π‘–π‘’π‘  π‘Žπ‘‘ π‘π‘™π‘œπ‘ π‘–π‘›π‘” π‘£π‘Žπ‘™π‘’π‘Žπ‘‘π‘–π‘œπ‘› / πΆπ‘’π‘Ÿπ‘Ÿπ‘’π‘›π‘‘ π‘Žπ‘ π‘ π‘’π‘‘π‘  π‘Žπ‘‘ π‘π‘™π‘œπ‘ π‘–π‘›π‘” π‘£π‘Žπ‘™π‘’π‘Žπ‘‘π‘–π‘œπ‘›

Unit

€/€

Indicator interpretation

Higher values indicate larger ratios of debts to current assets and thus lower economic sustainability.

Scale definition

Scales Values (€/€) Dexi interpretation References
< 25th percentile < 0.40 High + Based on the FADN data distribution for EU specialised dairy farms. Quantile method, 2016-2018 data.
[25th percentile; median] [0.40; 0.89] Medium

high

 to
[median; 75th percentile] [0.89; 1.96] Medium

low

 to
>=75th percentile >= 1.96 Low –