Ratios and benchmarks as tools for local food hub decision-making: a comparative case study

Food hubs, or local food aggregation and distribution businesses, are triple-bottom-line firms that play an increasingly important role in connecting small and mid-sized farmers to wholesale and retail markets. This paper explores how food hubs can use their financial data to identify and address strengths and challenges in their operations. We propose a “dashboard” of key metrics and benchmarks for food hub managers, and apply it a comparative case study of four food hubs over three years of operations. We compare and contrast the liquidity, cash flow, efficiency, solvency and repayment capacity of the four cases, and analyze cross-cutting themes. We find that although the food hubs varied in their business structure and composition of sales outlets, they all faced the challenges of limited working capital, labor inefficiencies, high debt-asset ratios, and limited profitability. Some firms were able to break even below the $1 million sales level typically cited as a food hub breakeven point, but still struggled to maintain positive profits, suggesting that they remained in a “breakeven” phase even as they grew. All of the food hubs owned relatively few fixed assets and used relatively little term debt from outside sources. Modest net worth and small total asset size left each firm vulnerable to insolvency in years of negative profit. However, with bootstrapping techniques such as renting or sharing equipment and collecting payments quickly, in general they used their assets efficiently. We evaluate the usefulness of our metrics and benchmarks in analyzing food hubs, and offer suggestions on how recordkeeping could be improved to make financial analysis easier. Finally, we return to the literature to make recommendations for managers on resolving challenges seen in the metrics, including problems with cash flow, solvency, labor efficiency and turnover, inventory management, and pricing

Montana Kaimin, September 25, 1974

Student newspaper of the University of Montana, Missoula.https://scholarworks.umt.edu/studentnewspaper/7348/thumbnail.jp

The Bottom Line: Investing for Impact on Economic Mobility in the U.S.

There is no greater challenge in the United States today than income inequality. It has been 50 years since the War on Poverty began. We have made progress but not enough. More than 32 million children live in low-income families, and racial and gender gaps persist. For the first time, Americans do not believe life will be better for the next generation. We have both a moral and an economic imperative to fuel social and economic mobility in this country.The Aspen Institute was founded in 1950 as a place to address the critical issues of our time. Today, ensuring that the American dream can be a possibility for all and be passed from one generation to the next is that issue. This commitment is at the heart of the work of many policy programs at the Aspen Institute. Ending the cycle of poverty requires leadership and hard work across all sectors, from nonprofit organizations, philanthropies, and academia to the government and private sector. This report recognizes the importance of learning from all sectors in tackling any challenge. Specifically, it builds on opportunities in the growing impact investment field. The report draws on the lessons from market-based approaches to identify tools and strategies that can help move the needle on family economic security. In this report, you will find the following: Case studies -- An opportunity to go under the hood on deals with the Bank of America, W.K. Kellogg Foundation, Acelero Learning, and others; Point of view essays -- Insights and lessons from leaders in the field; Deals at a glance -- Snapshots of impact investors and what they have learned, including the Kresge Foundation, Living Cities, and the MacArthur Foundation; and Survey results and lessons learned -- Trends among active and emerging players in the U.S. impact investment field and the lessons that can be applied to economic mobility in the U.S. We are pleased to offer this expanded perspective on impact investing in the U.S. and the lessons for investors, philanthropists, and non-profits working to build strong and prosperous families and communities

Final report

https://egrove.olemiss.edu/aicpa_guides/1375/thumbnail.jp

U.S. GAAP Financial Statements Best Practices in Presentation and Disclosure, 2015, 69th edition; Accounting Trends & Techniques

https://egrove.olemiss.edu/aicpa_att/1096/thumbnail.jp

AICPA audit and accounting manual : nonauthoritative technical practice aids, as of June 1, 1994

https://egrove.olemiss.edu/aicpa_guides/1745/thumbnail.jp

World Development Report 2022

This new World Development Report focuses on the interrelated economic risks that households, businesses, financial institutions, and governments worldwide are facing as a consequence of the COVID-19 crisis. The Report offers new insights from research on the interconnectedness of balance sheets and the potential spillover effects across sectors. It also offers policy recommendations based on these insights. Specifically, it addresses the question of how to reduce the financial risks stemming from the extraordinary policies adopted in response to the COVID-19 crisis while supporting an equitable recovery. The unfolding COVID-19 pandemic has already led to millions of deaths, job losses, business failures, and school closings, triggering the most encompassing economic crisis in almost a century. Poverty rates have soared and inequality has widened both across and within countries. Disadvantaged groups that had limited financial resilience to begin with and workers with lower levels of education—especially younger ones and women— have been disproportionately affected. The response by governments has included a combination of cash transfers to households, credit guarantees for firms, easier liquidity conditions, repayment grace periods for much of the private sector, and accounting and regulatory forbearance for many financial institutions. Although these actions have helped to partially mitigate the economic and social consequences of the pandemic, they have also resulted in elevated risks, including public overindebtedness, increased financial fragility, and a general erosion in transparency. Emerging economies have been left with very limited fiscal space, and they will be made even more vulnerable by the impending normalization of monetary policy in advanced economies. This Report highlights several priority areas for action. First is the need for early detection of significant financial risks. Because the balance sheets of households, firms, financial sector institutions, and governments are tightly interrelated, risks may be hidden. The share of nonperforming loans has generally remained below what was feared at the beginning of the crisis. But this could be due to forbearance policies that delayed debt repayments and relaxed accounting standards. Firm surveys in emerging economies reveal that many businesses expect to be in payment arrears in the coming months, and so private debt could suddenly become public debt, as in many past crises. The interdependence of economic policies across countries matters as well. Public debt has reached unprecedented levels. As monetary policy tightens in advanced economies, interest rates will need to increase in emerging economies as well, and their currencies will likely depreciate. Higher interest rates make debt service more expensive, reinforcing the trend of recent years, and weaker currencies make debt service more burdensome relative to the size of the economy. Liquidity problems could suddenly morph into solvency problems

The drivers of Corporate Social Responsibility in the supply chain. A case study.

Purpose: The paper studies the way in which a SME integrates CSR into its corporate strategy, the practices it puts in place and how its CSR strategies reflect on its suppliers and customers relations. Methodology/Research limitations: A qualitative case study methodology is used. The use of a single case study limits the generalizing capacity of these findings. Findings: The entrepreneur’s ethical beliefs and value system play a fundamental role in shaping sustainable corporate strategy. Furthermore, the type of competitive strategy selected based on innovation, quality and responsibility clearly emerges both in terms of well defined management procedures and supply chain relations as a whole aimed at involving partners in the process of sustainable innovation. Originality/value: The paper presents a SME that has devised an original innovative business model. The study pivots on the issues of innovation and eco-sustainability in a context of drivers for CRS and business ethics. These values are considered fundamental at International level; the United Nations has declared 2011 the “International Year of Forestry”