FINANCIAL PER FORMANCE OF MULTIPURPOSE COOPERATIVE UNIONS IN NORTH SHOWA ZONE: A COMPARATIVE STUDY

Abstract

The objective of the study was analyzing the financial performance of multi-purpose cooperative unions in North Showa Zone from the period 2007-2016. The data analyses were trend analysis, comparative analysis, common size analysis, ratio analysis and regression model to test the significance of variables on the measurement of financial performance. The trend and the comparative analysis showed that the overall financial performance trends and comparative position of the unions. The common size analysis assured that each unions administered huge amount of asset, of which the larger portion of the asset was debt and the smaller part of the asset was capital. Moreover, each union conduct high volume of sales, the greatest part of it was cost of goods sold and the minimum part of it was the profit margin. The different ratio analysis also point out various result according to their nature. The overall financial performance measurement indicated that Wodera and Kessem union relatively was good in their financial performance, whereas Yifat and Menze was low. Thus, the union’s management should seriously focus on total asset turn over, debt to total asset, return on equity and net operating profit ratio to improve the financial performance of the unions.