The Financial Performance Of Cooperative A: A Case Study
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).