The important aspects of liquidation of Kenguri sheep and purpose of its rearing were studied during the experiment. Total forty sheep farms, 20 each in intensive and extensive rearing systems were selected randomly based on their accessibility in study area Yadgir district of Karnataka, India. The main factors of liquidation and purpose of sheep raising were tabulated by calculating frequency and percentage values. Reasons like agriculture purpose (100.00%) and domestic expenses (90.00%) were having sometimes and occasional frequencies under liquidation of sheep in intensive rearing system majorly. Likewise, domestic expenses (80.00%) and repay loan (80.00%) were having equal weightage of sometimes and occasional frequencies in extensive rearing system regarding sheep selling. Income generation (100.00%) and hereditary acquisition (95.00%) were the major and minor intrinsic factors and high demand for mutton production was major extrinsic factor in intensive rearing system. Employment (70.00%) and investment and growth (75.00%) were the major and minor intrinsic factors and more lucrative (90.00%) was the major extrinsic factor in extensive rearing system. The findings of this evaluation will pave the path for profitable selling and systematic rearing of sheep to the farming community in further days.