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GLOSSARY
Click on a letter below to jump to the alphabetical section it represents:
Above Average Milking Ability - Cows producing an average of 7.5 kg (16.5 lbs) of 4.0% butterfat milk per day during the first 3.5 months of lactation. Does producing 3.0 kg (6.6 lbs) of 4.0% butterfat milk per day during a 12 week lactation.
Accounts Payable - Liabilities that are expected to be paid within one year or less.
Accounts Receivable - This is money loaned or credit extended to others that is expected to be paid back within one year.
Accrual Accounting - An accounting method where the effects of transactions and other financial events are recognized when they have their primary economic impact, and not necessarily when cash is received or disbursed.
Acquired Feeder Kid Enterprise - A feeder kid enterprise comprised of purchased goats.
Acquired Feeder Kid - Weaned goats that have been purchased for an acquired feeder kid enterprise.
Acquired Feeder Lamb - A feeder lamb enterprise comprised of purchased sheep.
Acquired Feeder Lamb - Weaned sheep that have been purchased for an acquired feeder lamb enterprise.
Acquired Stocker - A stocker enterprise comprised of purchased cattle.
Acquired Stocker - Weaned cattle that have been purchased for an acquired stocker enterprise.
Annual Inventory Date - The anniversary of the inventory date.
Assets - All forms of property held by a person or business.
Asset Turnover Ratio - A measure of financial efficiency and calculated by dividing gross revenues by average total ranch assets.
Average Milking Ability - Cows producing an average of 5 kg (11 lbs) of 4.0% butterfat milk per day during the first 3.5 months of lactation. Does producing an average of 1.5 kg (3.3 lbs) of 4.0% butterfat milk per day during a 12 week lactation.
Average Total Ranch Assets - This is the average of the beginning and ending assets held by the ranch business during the operating year.
Average Total Ranch Equity - This is the average of beginning and ending equity of the ranch business for the operating year.
Balance - In relation to a debt it is the difference between what was owed and what has been repaid (ie. the amount still owed).
Balance Sheet - A financial form listing, as of a specific date, a business' assets and liabilities and the difference between the two which is net worth or equity.
Billy - A male goat used for breeding.
Break-even Purchase Price - The purchase price above which the enterprise would have a negative gross margin and below which it would have a positive gross margin.
Break-even Sales Price - The selling price above which the enterprise would have a positive gross margin and below which it would have a negative gross margin.
Break-even Sales Weight - The sales weight above which the enterprise would have a positive gross margin and below which it would have a negative gross margin.
Breeding Animal Enterprise - An enterprise consisting of animals kept for reproductive purposes and producing offspring as their output such as a cow-calf enterprise, ewe-lamb enterprise or doe-kid enterprise.
Bonds - Interest bearing certificates of public or private indebtedness.
Bull - A male bovine used for breeding purposes.
Calf - A young bovine before weaning.
Calve - Bovine parturition.
Capital Assets - Assets used to aid or improve production and for a ranch might include such things as fencing, facilities, buildings, vehicles, stock horses, equipment, machinery, computers, etc...
Capital Purchase - The expenditure for a capital asset.
Cash Direct Costs - Those direct costs that are actually paid with money.
Cash Flow - An analysis of the passing of money in and out of a business.
Cash Gross Product - The value of what is produced by an enterprise that is received in the form of cash. Generally cash sales (less cash purchases if applicable).
Cash Inflow - The money which passes into a business.
Cash on Hand - Hard currency that is in one's possession.
Cash Outflow - The money that passes out of a business.
Cash Overhead Costs - Those overhead costs that are paid for with cash.
Cattle Enterprise - Includes cow-calf and stocker enterprises.
Checking Account - An individual's bank deposit upon which checks can be written to make withdrawls from this fund.
Close Value - The value of inventories for an enterprise at the end of the period.
Compensating - The rapid and efficient growth that occurs if a feeding restriction is removed from growing animals before stunting occurs.
Cost - Open value plus purchases for an enterprise for a given period.
Cost - The amount paid for something.
Cow to Bull Ratio - The sum of mature cows, H2's and H1's divided by the number of bulls.
Cow-Calf Enterprise - An enterprise that consists of breeding cattle producing calves.
Cull -
1) An animal that has been eliminated from the group for reasons other than being open or dry.
2) The act of removing such animals from the group.
Cull % - An index describing culling management and equal to the number of culled animals divided by the total.
Cull Billy - This is a breeding billy which has outlived its usefulness and will be sold from the doe-kid enterprise.
Cull Bull - This is a breeding bull which has outlived its usefulness and will be sold from the cow-calf enterprise.
Cull D0 - Only occur when does first kid as two year olds, and then refers to replacement does culled between weaning and the annual inventory date.
Cull D1 -
If Does First Kid at One Year of Age:
If Does First Kid at Two Years of Age:
Cull D2 - D2's culled during the year following the inventory date.
Cull E0 - Cull E0's only occur in ewe-lamb enterprises when ewes first lamb as two year olds, and then refer to replacement ewes that are culled between weaning and the annual inventory date.
Cull E1 -
If Ewes First Lamb at One Year of Age:
If Ewes First Lamb at Two Years of Age:
Cull E2 - E2's culled during the year following the inventory date.
Cull H0 - Cull H0's only occur in cow-calf enterprises when cows first calve as three year olds, and then refer to replacement heifers that are culled between weaning and the annual inventory date.
Cull H1 -
If Cows First Calve at Two Years of Age:
If Cows First Calve at Three Years of Age:
Cull H2 - H1's culled during the year following the inventory date.
Cull Mature Cow - H2's, or mature cows, culled during the year following the inventory date.
Cull Mature Doe - Mature does culled during the year following the inventory date.
Cull Mature Ewe - Refers to mature ewes at the inventory date which are culled during the year following the inventory date.
Cull Ram - This is a breeding ram which has outlived its usefulness and will be sold from the ewe-lamb enterprise.
Current Assets - Those assets that will be transferred into cash or will be sold or consumed within one year or within the normal operating cycle of the business if longer than one year and include cash, marketable securities, receivables, and current inventories.
Current Liabilities - Accounts Payable, unpaid taxes, and other debts due within one year.
Current Ratio - Used as a measure of liquidity and calculated by dividing total current ranch assets by total current ranch liabilities.
D0 - Breeding does that will be bred for the first time NEXT period. Only present when the does first kid as two year olds.
D1 - A doe that has her first breeding season this period.
D2 - A doe that has her second breeding season this period.
Debt - An obligation or liability to pay or render something to someone else.
Debt/Asset Ratio - A measure of solvency calculated by dividing total ranch liabilities by total ranch assets.
Debt/Equity Ratio - A measure of solvency calculated by dividing total ranch liabilities by total ranch equity.
Debt Principle Paid - Money repaid on a loan excluding interest costs.
Depreciation - The decline in value of an asset over time and through use. Calculated for an asset using one of several methods including the straight line method.
Depreciation Expense - Total depreciation for all of a business' capital assets.
Depreciation Expense Ratio - A measure of financial efficiency and calculated by dividing the depreciation expense by gross revenues.
Direct Costs - Expenses that vary in direct proportion to the level of production. Including, for livestock enterprises, such things as the opportunity costs of livestock investment as well as feed, medicine, veterinary, and shipping expenses, etc...
Doe - A female goat.
Doe Kid - A female kid before weaning.
Doe to Billy Ratio - The sum of mature does, D2's and D1's divided by the number of billies.
Doe-Kid Enterprise - An enterprise that consists of breeding goats producing kids.
Dry - A female breeding animal that has failed to wean an offspring.
Dry D1 - A D1 that fails to wean a kid during the year following the inventory date.
Dry D2 - A D2 that fails to wean a kid during the year following the inventory date.
Dry E1 - A E1 that fails to wean a kid during the year following the inventory date.
Dry E2 - A E2 that fails to wean a kid during the year following the inventory date.
Dry H2 - A cow that is dry after her first calving season.
Dry Mature Cow - A cow that is dry after her second or later calving season.
Dry Mature Doe - A mature doe that fails to wean a kid during the year following the inventory date.
Dry Mature Ewe - A mature ewe that fails to wean a lamb during the year following the inventory date.
E0 - Breeding ewes that will be bred for the first time NEXT period. Only present in a ewe-lamb enterprise when the ewes first lamb as two year olds.
E1 - A ewe that has her first breeding season this period.
E2 - A ewe that has her second breeding season this period.
Economic Profit - The value of what is produced by a business minus all of the opportunity costs of the resources used to produce it.
Enterprise - Any business undertaking which has a potential return and can be separated, at least partially, from other undertakings.
Enterprise Efficiency - The ability of an enterprise to convert resources into gross margins. For grazing livestock enterprises this refers to the gross margin per gross margin per grazing unit month (GM/GUM).
Equity (Net Worth) - The assets minus the liabilities for a person or business.
Equity/Asset Ratio - A measure of solvency and calculated by dividing total ranch equity by total ranch assets.
Ewe - A female sheep.
Ewe Lamb - A female sheep before weaning
Ewe to Ram Ratio - The sum of mature ewes, E2's and E1's divided by the number of rams.
Ewe-Lamb Enterprise - An enterprise that consists of breeding sheep producing lambs.
Exposed - A descriptive term for a female that has been with a male for breeding purposes.
Feeder Enterprise - Referring to either a feeder kid enterprise or a feeder lamb enterprise.
Feeder Kid - Weaned goats kept on the ranch for the purposes of growth and resale.
Feeder Kid Enterprise - Any goat enterprise other than a doe-kid enterprise.
Feeder Lamb - Weaned sheep kept on the ranch for the purposes of growth and resale.
Feeder Lamb Enterprise - Any sheep enterprise other than a ewe-lamb enterprise.
Financial Efficiency - The ability of a business to produce effectively with a minimum of waste or effort.
Gestation - The time of pregnancy.
Goat Enterprise - Includes doe-kid and feeder kid enterprises.
Grazing Unit (GU) - The amount of grass required to provide 10 megacalories of net energy. Approximately equal to the daily requirements of a 1000 lbs. nonlactating cow in the last trimester of pregnancy, a 700 lbs. steer gaining 1 kg ( 2.2 lbs.) per day, five 154 lbs. ewes in the first 15 weeks gestation or five 130 lbs. does in late pregnancy.
Grazing Unit Month (GUM) - The amount of grass required to provide 10 megacalories of net energy per day for one twelfth of the year.
Gross Income - The sum of sales and close value for an enterprise during the period.
Gross Margin - Equal to the gross product of an enterprise minus its direct costs.
Gross Margin per Grazing Unit Month (G.M/G.U.M) - A measure of the efficiency of the utilization of the grazing resource. It identifies for a grazing enterprise the return for a unit of grass consumed. Calculated by dividing the gross margin by the grazing unit months.
Gross Product - The total value of what is produced by an enterprise during a period. Calculated as gross income minus cost of sales.
Gross Profit - Gross Revenues minus Operating Expenses.
Gross Revenues - Accrued ranch receipts plus the value of ranch products consumed on the ranch.
H0 - Breeding heifers that will be bred for the first time NEXT period. H0's are only present when heifers first calve at three years old.
H1 - A heifer that has her first breeding season this period.
H2 - A heifer that has her second breeding season this period.
Heifer - A female bovine that has not given birth.
Heifer Calf - A female bovine before weaning.
High Activity - This is the level of activity that would be expected for goats on arid rangeland with sparse vegetation or mountainous pastures.
Inflation Rate - An increase in the price of goods and services over time measured as a percentage change on an annual basis.
Interest Expense - The costs incurred from borrowing money.
Interest Expense Ratio - A measure of financial efficiency and calculated by dividing ranch interest expense by gross revenues.
Interest Rate - The charge made for being allowed to use someone else's money as a percentage of the amount being used.
Inventory - A list of the items available for sale held by a business.
Inventory Date - The day the livestock were counted.
Inventory Value - The worth of an item held within the inventory.
Investments - Money committed in order to gain future profits or interest.
Kid - 1. A young goat before weaning. 2. The act of parturition for a doe.
Lactation - The period of time after parturition that female mammals produce milk.
Lamb - 1. A young ovine before weaning. 2. The act of parturition for a ewe.
Large Frame Cattle - A cattle breeding herd producing large frame heifers and steers.
Large Frame Heifers - Heifers having a live weight of more than 475 kg (1047 lbs) at usual market finish.
Large Frame Steers - Steers having a live weight of more than 520 kg (1146 lbs) at usual market finish.
Large Frame Sheep - Sheep that would produce mature rams weighing 125 kg (275 lbs).
Liabilities - The financial obligations that a person or business are responsible for such as bills, loans, mortgages, credit card debt, balances due on charge accounts, etc...
Liquidity - The ease with which a business could convert its assets into cash.
Loans Payable - Debts that require more than one year to repay.
Low Activity - This is the expected activity level for goats grazing intensively managed pastures and tropical rangeland.
Maintenance Energy Requirement - That amount of dietary energy that an animal must consume to neither gain nor lose body energy. Experimentally it is the amount of energy resulting in zero change in body energy and zero product.
Market Trend - The upward or downward changes in market prices over a period of time.
Mature Cows - A heifer that has her third breeding season or more this period.
Mature Does - A doe that has her third breeding season or more this period.
Mature Ewes - A ewe that has her third breeding season or more this period.
Medium Activity - This is the level of activity expected for goats grazing semiarid rangeland or slightly hilly pastures.
Medium Frame Cattle - Refers to a breeding herd of cattle producing medium frame heifers and steers.
Medium Frame Heifers - Heifers having a 400-475 kg (882-1047 lbs) live weight at usual market finish.
Medium Frame Steer - A Steer having a 450-520 kg(992-1146 lbs) live weight at usual market finish.
Medium Frame Sheep - Sheep that would produce mature rams weighing 115 kg (253 lbs).
Minimal Activity - This is the level of activity expected for goats reared in confinement.
Mohair - The fiber produced by goats.
Mortality Rate - Also known as the death rate. Calculated as the number of deaths in a period of time divided by the total number of animals, multiplied by one hundred. For most breeding animals this period of time is one year. For stocker and feeder animals, the period is the time in the enterprise.
Mutual Funds - Shares from an investment company that uses the proceeds from the sale of its shares to invest in various securities for the benefit of its shareholders.
Net Energy - A nutritional measure of the energy contained within a feedstuff that is available for use by an animal.
Net Energy Requirement - The amount of net energy that must be provided to meet an animal's maintenance as well as production needs.
Net Ranch Income - A measure of profitability calculated as the revenue earned minus the expenses incurred during the operating year without regard to the exchange of cash.
Net Ranch Income from Operations - The revenue earned from ranch operations minus the expenses incurred from ranch operations during the year without regard to the exchange of cash.
Net Ranch Income from Operations Ratio - A measure of financial efficiency and calculated by dividing net ranch income from operations by gross revenues.
Noncash Direct Costs - Those direct costs that are not paid out in cash.
Noncash Gross Product - The value of what is produced by an enterprise that is not received in the form of money. Generally noncash sales plus the increase in value of inventories minus, where applicable, noncash purchases.
Noncash Overhead Costs - Those overhead costs that may be incurred but are not paid out in cash.
Noncurrent Assets - Those assets that are not current assets and would generally include the following: land, buildings, equipment, machinery, and breeding livestock inventories.
Number Weaned - The average number of offspring weaned by females that actually wean offspring.
Open - Not pregnant.
Open D1 - Does that are found to be open after their first breeding season.
Open D2 - Does that are found to be open after their second breeding season.
Open E1 - Ewes that are found to be open after their first breeding season.
Open E2 - Ewes that are found to be open after their second breeding season.
Open H1 - Heifers that are found to be open after their first breeding season.
Open H2 - Cows that are found to be open after their second breeding season.
Open Mature Cow - A cow that is found to be open after their third or later breeding season.
Open Mature Doe - A doe that is found to be open after their third or later breeding season.
Open Mature Ewe - A ewe that is found to be open after their third or later breeding season.
Open Value - The value of inventories for an enterprise at the beginning of the period.
Operating Expense Ratio - A measure of financial efficiency and calculated as follows: ( operating expenses - depreciation expense )¸ gross revenues.
Operating Expenses - The sum of direct and overhead costs plus/minus the associated accrual adjustments.
Operating Profit Margin Ratio - A measure of profitability and calculated as follows: (Net Ranch Income from Operations + ranch interest expense - value of unpaid labor and management)¸ gross revenues.
Opportunity Cost - The cost of using resources for a certain purpose, measured by the benefit or revenue given up by not using them in their best alternative use.
Opportunity Interest Cost - The rate of return possible from investing capital in its best alternative use.
Opportunity Interest Rate - The rate of return possible from using a resource, generally a capital investment, for its best alternative use. For instance, a rancher could conceivably sell his livestock and invest the funds in something else. The rate of return received would be the opportunity interest rate.
Opportunity Rent - The value of rent forsaken by an owner for land and/or facilities that could have been received if those assets had been lent to another and not used by the owner.
Other Investments - For the purposes of Ranch Vision, Other Investments specifically refers to investments other than those in stocks, bonds or mutual funds.
Other Noncurrent Assets - These are noncurrent assets excluding land, buildings, vehicles, equipment or machinery.
Outstanding Balances - In reference to a loan, this is the amount still owed.
Overhead Costs - Costs that remain relatively constant regardless of the level of production.
Parturition - The act of giving birth.
Period - The year starting from the most recent parturition or weaning for the given species of livestock.
Pregnant % - The number pregnant divided by the number exposed to the male for breeding, multiplied by one hundred.
Profit - The sum of all ranch gross margins minus ranch overheads.
Profitability - The ability to produce income in excess of expenses.
Ram - A male sheep kept for breeding purposes.
Ranch Interest Expense - The total of all interest expenses held by the ranch business.
Rate of Return on Ranch Assets - A measure of profitability calculated as follows: (Net Ranch Income from Operations + Ranch interest expense - Value of operator and unpaid family labor and management)¸ Average total ranch assets.
Rate of Return on Ranch Equity - A measure of profitability calculated as follows: ( Net Ranch Income from Operations - Value of unpaid labor and management)¸ Average Total Ranch Equity.
Repayment Period - The number of years that are allowed for a borrower to pay back a loan.
Replacement Doe - A young female goat intended for breeding purposes.
Replacement Ewe - A young female sheep intended for breeding purposes.
Replacement Heifer - A young female bovine intended for breeding purposes.
Retained Doe Feeder Kid - An animal in a retained doe feeder kid enterprise.
Retained Doe Feeder Kid Enterprise - A retained feeder kid enterprise consisting solely of doe kids.
Retained Ewe Feeder Lamb - An animal in a retained ewe feeder lamb enterprise.
Retained Ewe Feeder Lamb Enterprise - A retained feeder lamb enterprise consisting solely of ewe lambs.
Retained Feeder Kid Enterprise - An enterprise consisting of weaned goats, originating from the doe-kid enterprise, that have been kept on the ranch for growth and resale.
Retained Feeder Lamb Enterprise - An enterprise consisting of weaned sheep, originating from the ewe-lamb enterprise, that have been kept on the ranch for growth and resale.
Retained Heifer Stocker - An animal in a retained heifer stocker enterprise.
Retained Heifer Stocker Enterprise - A retained stocker enterprise consisting solely of heifers.
Retained Steer Stocker - An animal in a retained steer stocker enterprise.
Retained Steer Stocker Enterprise - A retained stocker enterprise consisting solely of steers.
Retained Stocker Enterprise - An enterprise consisting of weaned calves, originating from the cow-calf enterprise, that have been kept on the ranch for growth and resale.
Retained Wether Feeder Lamb - An animal in a retained wether feeder lamb enterprise.
Retained Wether Feeder Kid - An animal in a retained wether feeder kid enterprise.
Retained Wether Feeder Kid Enterprise - A retained feeder kid enterprise consisting solely of wether kids.
Retained Wether Feeder Lamb Enterprise - A retained feeder lamb enterprise consisting solely of wether lambs.
Salvage Value - The residual value of an asset after it has been fully used for its intended purpose.
Savings Account - An account (such as a passbook savings account or a money market account) that has higher interest rates than a transaction account due to limited withdrawl privileges.
Sheep Enterprise - Includes ewe-lamb and feeder lamb enterprises.
Shorn - To remove the fiber (fleece or hair) from an animal.
Small Frame Sheep - Sheep that would produce mature rams weighing approximately 105 kg (231 lbs).
Solvency - The ability of a business to meet its financial obligations.
Steer - A young bovine, especially one castrated before sexual maturity and raised for beef.
Steer Calf - A male bovine before weaning.
Stocks - Shares constituting at least partial ownership in the assets, earnings, and direction of a corporation.
Stocker - A weaned bovine kept on the ranch for the purpose of growth and resale.
Stocker Enterprise - Any cattle enterprise other than a cow-calf enterprise.
Straight-Line Depreciation Method - A method of depreciating assets where the depreciation for each year of useful life is calculated as follows:
Superior Milking Ability - Cows producing an average of 10 kg. 4.0% butterfat milk per day during the first 3.5 months of lactation. Does producing 4.5 kg. (9.9 lbs.) of 4.0% butterfat milk per day during a 12 week lactation.
Supplemental Feed - Food that is provided to grazing animals in addition to what they receive from pasture.
Unpaid Labor - Work performed by family or friends that is not compensated monetarily.
Useful Life - The number of years that an asset is expected to be able to perform its intended function.
Value of Unpaid Labor and Management - The market value of work that has been performed by family members or others in lieu of paying others to do it.
Wean -
1) To raise an offspring to the age when it is removed from its mother.
2) When a young animal is removed, to no longer nurse, its mother.
Weaned % - The number of breeding females going on to wean offspring divided by the number pregnant, multiplied by 100.
Weaned Replacement Doe - A Female breeding goat between the time she is weaned until the annual inventory date.
Weaned Replacement Ewe - A Female breeding sheep between the time she is weaned until the annual inventory date.
Weaned Replacement Heifer - A breeding heifer between the time she is weaned until the annual inventory date.
Wether Kid - A male goat before weaning.
Wether Lamb - A male lamb before weaning.
Working Capital - Used as a measure of liquidity and calculated by subtracting total ranch liabilities from total ranch assets.
Year 1,2,3,4,5 Open/End - The inventory or numbers of animals within each class at either the beginning(open) or completion(end) of the year.
Yearling - An animal that is approximately one year old.
Years Left to Pay - The amount of time in years remaining in the terms of a loan agreement before the loan must be repaid.
Year Purchased - The upcoming year for which an asset is expected to be purchased in relation to the current year (ex. Year 1,2,3,4,5).
