To calculate the Agricultural Ratio (Ag Ratio):
Ag Ratio=(Ag ValueTotal Asset Value)×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:
Ag Ratio=(500,0002,000,000)×100=25%
The Agricultural Ratio is 25%.
Let's assume the following values:
Using the formula:
Ag Ratio=(300,0001,500,000)×100=20%
The Agricultural Ratio is 20%.