Global financial crises and potential sovereign defaults provide an opportunity for financial regulators and analysts to revise assumptions in their risk models. These conditions are also an opportunity for regulators and analysts to distinguish the ‘hyper-real’ economy, represented by derivatives, from the real economy, which requires assessment through an analysis of human as well as financial capital. Regulators are required to demonstrate that they are skilled in conducting the most thorough analysis of all elements of the finance system in order to help the investing public to manage risk as much as possible. The contribution of this article is to overview the limitations inherent in regulators’ traditional focus on financial analysis, as well as in financial analysts’ failure to consider the relevance of people management data when evaluating the potential performance of knowledge-intensive, service-based organisations. The article argues for a stronger focus on analysis of non-financial capital, including human capital, to provide a more effective ‘early warning’ of potential financial distress.

Financial conditions existing in agriculture are placing severe pressure on lenders as well as borrowers. Data from both good and foreclosed Federal Land Bank loans were analyzed to determine the most important characteristics leading to the failure of loans. The analysis was completed by comparing means through t-tests and the development of a discriminant model. The ratio of total debt service to total income, the debt to asset ratio, the ratio of total loan amount to appraised value, and the ratio of acres in security to acres owned were determined to be the most important discriminating variables.

Artificial drying of corn in the Southeastern Coastal Plain was shown to be financially feasible for average annual per farm production levels of greater than 10,000 bushels. Net present values for four types of drying systems were evaluated using simulation modeling in which weather conditions, yield levels, and prices were entered as stochastic variables. Scale of production and irrigation substantially influenced crop drying potential. Stochastic efficiency analysis was used to evaluate the riskiness of the investment.

Financial analysis of an ethanol/electricity cogeneration plant indicates a rapid payback of investment and a high internal rate of return. This is primarily because cogeneration of steam for generation of electricity and biomass conversion to ethanol results in increased engineering efficiency compared to alternative ethanol alone production processes. Economic sensitivity testing included alternative price levels, interest rates, capacities, costs, and a “stand alone” case with no federal government excise tax subsidies. Supply and price analyses suggest the procurement of locally produced feedstock in Alabama and surrounding states is feasible. The robustness of the economic analysis provides support for consideration of ethanol cogeneration as a currently feasible strategy to utilize excess agricultural production capacity.

The present paper carries out a cost benefit analysis of centralized wastewater reuse systems in Beijing. This study consists of two parts: financial analysis and economic analysis. The financial analysis is made from the point of view of plant manager, in which financial benefits and cost is calculated. The economic analysis is made from the point of view of society, in which the economic, environmental and social benefits and cost are determined. The results of financial analysis show that the financial benefits are larger than cost, which means the centralized wastewater reuse systems are financially feasible. It implies that the investment on centralized wastewater reuse systems is profitable. The results of economic analysis show that the ratio of benefit to cost is larger than 1, which means the centralized wastewater reuse systems are economically feasible. It implies that centralized wastewater reuse systems have positive effects on the society. From the point of view of plant manager, centralized wastewater reuse systems could operate in a long term, while from the point of view of government or society, the centralized wastewater reuse systems are worth to be promoted.

In Brazil, as well as globally, land use has been increasingly addressed for environmental impacts and economic improvements. Integrated crop–livestock systems (ICLSs) are a potential strategy to optimize use of land, increase total production and reduce economic risk through diversification. We compared production and economic outcomes of a soybean-only system with ICLS differing in sward management. The study area was managed since 2001 using no-till in southern Brazil. Soybean [Glycine max (L.) Merr.] was rotated with a mixture of black oat (Avena strigosa Schreb) and ryegrass (Lolium multiflorum Lam) either for: (i) grazing (ICLS) or (ii) cover crops as cropping system only (CS) with no livestock grazing. Four sward height management methods (10, 20, 30 or 40 cm) were evaluated under put-and-take stocking. Across years, soybean yield (2516±103 kg ha−1) was not affected by treatment, but was affected by year (P<0.001), due to rainfall during crop development. Cattle average daily gain, gain per hectare (GPH) and gross margin were affected by treatments (P<0.001). Average daily gain was lower when pasture was managed at 10 cm than between 20 and 40 cm. With increasing sward height, a gradual reduction in cattle GPH was observed (P<0.05). Overall gross margin was lower in CS than in ICLS. Economic return with ICLS was greatest when sward height management was between 10 and 20 cm. Our study indicates that ICLS could be considered an alternative management strategy that improves economic performance and promotes balanced production in the long term.

Diversification into alternative enterprises appears to be gaining in popularity and economic importance as a way to supplement family income and to provide alternative sources of high-quality food. However, potential rabbit producers lack information about investment requirements and production and marketing costs. The objective of this study was to determine the most profitable operation of small-scale rabbit production by estimating the costs and returns, net present values, and payback periods of two rabbit production systems. Despite a difference in the net income generated, a cash surplus occurred for both systems at the end of the third year. This surplus was the return to land, family labor, and management. Thus, rabbit enterprises may provide economic opportunities for farm families who have limited land and capital.