1 / 8

Financial Management of Grain Elevators: Board Strategies

Explore key financial management strategies for grain elevators, including balance sheet management, risk assessment, and compliance monitoring. Ensure board members understand financial covenants and protect your organization's financial health.

hei
Télécharger la présentation

Financial Management of Grain Elevators: Board Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Management of Grain Elevators – What’s a Board to Do?North Dakota Grain Dealers ConventionJanuary 21, 2013 John Power, CPA Power Financial, LLC

  2. Financial Statement Management • It’s more than “Are we making money?” – You can be profitable all the way into bankruptcy!

  3. Financial Statement Management • It’s more than “Are we making money?” – You can be profitable all the way into bankruptcy! • Balance Sheet Management is just as Important.

  4. Financial Statement Management • It’s more than “Are we making money?” – You can be profitable all the way into bankruptcy! • Balance Sheet Management is just as Important. • Contingency Planning and Risk Management are more important than ever

  5. Know & Understand what Financial Covenants are in your Loan Agreements • Covenants are Negotiable! • Don’t agree to something that is inappropriate or you can’t meet. • Monitor Your Compliance

  6. Common Financial Covenants • Working Capital • Current Ratio • Debt Service Coverage • Debt to Equity or Local Ownership % • Periods of high commodity prices can raise havoc with this ratio.

  7. Common Financial Covenants • Not meeting the loan covenants is grounds for calling the loan…you don’t want that in your financial statement notes!!

  8. Risk Management • Expanding beyond the “traditional” commodities can be good business but brings some new business risks. • Boards need to understand these risks and develop policies. • The sales/collection process is completely different for some commodities. • All it takes is one weak link in the chain!

More Related