Table 6 Calculation formulas for each farm’s economic performance indicator used in the analysis
From: Conventional versus organic olive farming: which has a better economic performance?
Indicator (units) | Formula | RECAN data source codes |
|---|---|---|
Productivity | ||
Land productivity (€/ha) | \(\text{Total output / UAA}\) | \({\text{SE131}} \, \text{/} \, {\text{SE025}}\) |
Labor productivity (€/AWU) | \(\text{Total output / Total labor}\) | \({\text{SE131}} \, \text{/} \, {\text{SE010}}\) |
Capital productivity (%) | \(\text{Total output / Total assets}\) | \({\text{SE131}} \, \text{/} \, {\text{SE436}}\) |
Profitability | ||
1. Sales revenue (€/ha) | – | \({\text{SE131}}\) |
2. CAP subsidies (€/ha) | – | \({\text{SE605}}\) |
CAP 1st pillar subsidies (€/ha) | – | \(\text{SE610 + SE615 + SE630}\) |
CAP 2nd pillar subsidies (€/ha) | – | \(\text{SE624 + SE689}\) |
A. Total revenue (€/ha) | \({1}+{2}\) | \(\text{1 + 2}\) |
3. Intermediate consump. (€/ha) | – | \({\text{SE275}}\) |
B. Gross margin (€/ha) | \({\text{A}}-{3}\) | \({\text{A}}-{\text{SE275}}\) |
4. Wages paid (€/ha) | – | \({\text{SE370}}\) |
5. Rent paid (€/ha) | – | \({\text{SE375}}\) |
6. Depreciation (€/ha) | – | \({\text{SE360}}\) |
C. EBIT (€/ha) | \({\text{B}} - {4} - {5} - {6}\) | \({\text{B}} - {\text{SE370}} {-} {\text{SE375}} {-} {\text{SE360}}\) |
D. EBT (€/ha) | C − Interest paid (€/ha) | \(C {-} {\text{SE}}380\) |
E. Net income (€//ha) | D − Taxes paid (€//ha) | \(D {-} {\text{SE}}390\) |
ROA (%) | \(\text{EBIT / Total assets}\) | \({\text{EBIT}} \, \text{/} \, {\text{SE436}}\) |
ROE (%) | \(\text{Net income / Equity}\) | \(\text{Net income} \, \text{/} \, {\text{SE501}}\) |
Viability | ||
Total opport. costs (€//ha) | \({\text{OC}}_{\text{Land}} + \, {\text{OC}}_{\text{Labor}} \, + {\text{OC}}_{\text{Capital}}\) | – |
Economic profit (€//ha) | \(\text{Net income}-\text{ TOC}\) | – |
Long-term econ. viabilitya | \(\text{Net income} \, \text{/ TOC}\) | – |
Short-term econ. viabilitya | \(\text{Net income} \, \text{/}{\text{ OC}}_{\text{Labor}}\) | – |
Resilience | ||
CV of net income (%) | \(\frac{{\sigma_{{{\text{Net income}}_{{\text{t}}} }} { }}}{{\overline{{{\text{Net income}}_{{\text{t}}} }} }}\) | – |
Net income resistance (%) | \(\mathrm{Min}\left[\frac{ {\text{Net income}}_{\mathrm{t}}-\overline{{\text{Net income} }_{\mathrm{t}}} }{\overline{{\text{Net income} }_{\mathrm{t}}}} \forall t\right]\) | – |
Shannon div. index (SDI)a | \(- \overline{{\sum }_{\mathrm{i}}{\mathrm{p}}_{\mathrm{i},\mathrm{t}}\times \mathrm{ln}({\mathrm{p}}_{\mathrm{i},\mathrm{t}})}\) | \({\mathrm{p}}_{\mathrm{i}}\) based on SE035, SE041, SE046, SE050, SE055, SE060, SE065, SE071, SE075 |
Specific costs adjus. flexibility (%) | \(\overline{{\left| {\frac{{{\text{Specif. costs}}_{{\text{t}}} - {\text{Specif. costs}}_{{{\text{t}} - 1}} }}{{{\text{Specif. costs}}_{{{\text{t}} - 1}} }}} \right|}}\) | \(\overline{{\left| {\frac{{{\text{SE}}281_{{\text{t}}} - {\text{SE}}281_{{{\text{t}} - 1}} }}{{{\text{SE}}281_{{{\text{t}} - 1}} }}} \right|}}\) |
Labor input adjus. flexibility (%) | \(\overline{{\left| {\frac{{{\text{Total labor}}_{{\text{t}}} - {\text{Total labor}}_{{{\text{t}} - 1}} }}{{{\text{Total labor}}_{{{\text{t}} - 1}} }}} \right|}}\) | \(\overline{{\left| {\frac{{{\text{SE}}010_{{\text{t}}} - {\text{SE}}010_{{{\text{t}} - 1}} }}{{{\text{SE}}010_{{{\text{t}} - 1}} }}} \right|}}\) |
SDI adjus. flexibility (%) | \(\overline{{\left| {{\text{SDI}}_{{\text{t}}} - {\text{SDI}}_{{{\text{t}} - 1}} } \right|}}\) | – |
Independence | ||
Revenue dependency (%) | \(\text{Total CAP subsidies / Total revenue}\) | \({\text{SE605}} \, \text{/} \, \text{(SE131} \, \text{+} \, \text{SE605)}\) |
Net income dependency (%) | \(\text{Total CAP subsidies / }\text{Net income}\) | \({\text{SE605}} \, \text{/} \, \text{Net income}\) |