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Profit And Loss

Understanding Ranch Businesses

Ranch Vision considers “opportunity costs” when calculating Profit and Loss. Measurements of profit that do not consider opportunity costs are artificially inflated. To have zero “economic profit” means all costs are covered and all resources are used according to maximal efficiency.

Note that in the context of economic profit, zero profit is satisfactory. Since Ranch Vision displays economic profit in its Profit and Loss Report, don't be surprised to find very low, zero, or even negative profits (losses) reported.

Ranch Vision's projection of Net Ranch Income, found in the Financial Measures report, reflects profit without consideration of opportunity costs.

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