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debt / asset ratio
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thekcirp
Posted 9/7/2013 11:18 (#3313427 - in reply to #3313378)
Subject: Re: debt / asset ratio


NEMO

Using curent land and machinery prices? I would be pretty comfortable at $1 debt to $6 in assets, I guess. I dont want to have a payment on land that requires me to rob more than an equal amount of rented ground to help make that payment. Example: if I buy a 120 acres, I dont want to have to rent 121 to make that payment(if I need to), 120 is plenty. Like wise I have about a $1 of debt for every $40 in machinery assets and thats more than I want.

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