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Abstract

The objective of this research is to assess the financial performance of North Dakota farm supply and grain handling cooperatives between 2002 and 2006. Audited financial statements from 120 cooperatives were used. Various financial variables are tested as determinants of profitability. Financial ratio analysis is used to observe trends in liquidity, solvency, and efficiency. Comparisons in ratio trends are made based on relative profitability. No statistical relationship is found between business size and profitability. The most profitable North Dakota agricultural input supply and grain marketing cooperatives were observed to have financial ratio values distinct from less profitable ones.

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