If you don’t know your numbers, you’re managing blind. In this episode of the CattleUSA Daily Podcast, Lauren Moylan breaks down the three financial metrics every rancher needs to track: cost of production, operating expense ratio, and debt service coverage ratio. She explains how these simple numbers reveal whether your operation is profitable, sustainable, or quietly losing ground—and why the best ranchers treat these metrics as non-negotiables for smart business decisions.
Links
CattleUSA Insurance - https://info.cattleusainsurance.com/l/1102253/2025-06-04/288f5m
CattleUSA Website - https://www.cattleusa.com/
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Instagram - https://www.instagram.com/cattleusa.media/
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Lauren’s Instagram - https://www.instagram.com/_laurenmoylan/
Lauren’s Youtube - https://www.youtube.com/@Showboatmediaco
The Next Generation Podcast Website - https://www.thenextgenag.com/
Takeaways
Ranchers must track their cost of production to avoid managing blind.
The cost of production is the foundation of profitability.
Tracking financial metrics over time reveals trends in efficiency.
Top beef operations maintain an operating expense ratio below 75%.
A healthy debt service coverage ratio indicates sustainable growth.
Benchmarking against peers helps identify areas for improvement.
Understanding these metrics allows for better business decisions.
Good records and a calculator are all you need to track these numbers.
Running a ranch like a business leads to better outcomes.
Markets and weather change, but these metrics provide clarity.
Chapters
00:00 Understanding Key Financial Metrics for Ranchers
02:41 Cost of Production: The Foundation of Profitability
05:05 Operating Expense Ratio: Measuring Efficiency
ranching, financial metrics, cost of production, operating expense ratio, debt service coverage ratio, profitability, ranch management, cattle industry, business decisions, agricultural finance