To calculate the Agricultural Ratio (Ag Ratio):
\[ \text{Ag Ratio} = \left(\frac{\text{Ag Value}}{\text{Total Asset Value}}\right) \times 100 \]
Where:
The Agricultural Ratio (Ag Ratio) measures the value of agricultural assets relative to the total value of all assets. It is expressed as a percentage and is used to understand the proportion of assets dedicated to agriculture within a portfolio or business.
Let's assume the following values:
Using the formula:
\[ \text{Ag Ratio} = \left(\frac{500,000}{2,000,000}\right) \times 100 = 25\% \]
The Agricultural Ratio is 25%.
Let's assume the following values:
Using the formula:
\[ \text{Ag Ratio} = \left(\frac{300,000}{1,500,000}\right) \times 100 = 20\% \]
The Agricultural Ratio is 20%.