The Financial Performance Of Cooperative A: A Case Study

Rustum D. Gevero; Wilson C. Bation

Rustum D. Gevero Xavier University–Ateneo de Cagayan
Wilson C. Bation Xavier University–Ateneo de Cagayan

Keywords: financial performance, financial ratios, credit cooperative, Cagayan de Oro City, Philippines

Abstract

This study determined the financial performance of cooperative A using its 59th and 60th annual assembly reports. From 2013 to 2014, company A’s revenues and assets grew by 39% and 16%, respectively. Profit margin went down from 44% to 39%. Return on assets remained at 5%, while asset turnover increased from 12% to 14%.

Drawn from the study are the following observations: First, the growth in revenues, assets, and asset turnover is commendable. Second, an area for improvement is the profit margin. It is recommended that cooperative A look into the individual components of their expenses. One of the possible things to look into is in the area of other expenses, which increased by 69% from 2013 to 2014. Needless to say, 39% is still a very good profit margin when compared to other open-type cooperatives in Cagayan de Oro, Philippines.

This is a part of a bigger study where the authors intend to look into the performances of cooperatives in Cagayan de Oro City. Further studies will look at the individual performances of other cooperatives in the city. Comparisons and contrasts can then be done as well. The motivation of the study stemmed from the importance of financial statement analyses for it highlights the firm’s strengths and weaknesses (Dayanandan, 2012). Financial mismanagement can weaken a social enterprise (Agliata, Ferrone, & Tuccillo, 2014).

Author Biographies

Rustum D. Gevero, Xavier University–Ateneo de Cagayan

Rustum D. Gevero is currently the Assistant Dean of the School of Management of Xavier University (Ateneo de Cagayan), Misamis Oriental, Philippines. He teaches management and economics subjects. His research interests are in financial performances of cooperatives and are actively involved with social outreach through livelihood programs. He has articles presented at the International Conference on Cooperatives (ICOOP), and the International Conference on Multidisciplinary Research of the Philippine Association of Institutions for Research (PAIR). He is a member of the International Association of Multi-disciplinary Research (IAMURE). He got his Management Economics degree from the Ateneo de Manila University and a Masters in Business Administration and Doctor of Business Management degrees at Xavier University.

Wilson C. Bation, Xavier University–Ateneo de Cagayan

Wilson C. Bation is currently the Research Coordinator of the School of Business and Management of Xavier University (Ateneo de Cagayan), Misamis Oriental, Philippines. He has been a faculty of the said institution since 1998. His research interests include sustainability and financial performances of cooperatives, corporate social responsibility (CSR) of cooperatives, healthcare services and marketing strategies, health care providers, trading businesses, monetary policy, and macroeconomic theory. Dr. Bation received his AB Economics at Notre Dame of Dadiangas College in 1983, Master in Business Administration at Misamis University in 1989 and Doctor in Business Administration at Xavier University in 2012.