Assessment of Financial Performance of Agricultural Cooperative Unions: The Case of West Harerghe Zone, Oromia Region, Ethiopia

2020 ◽  
Vol 8 (9) ◽  
pp. 86-104
Author(s):  
Buta Debela Bonsa ◽  
Kerima Rahmeto Ebrahim
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Free Cash Flow ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Agricultural Cooperative ◽  
Secondary Sources ◽  
Current Asset ◽  
Asset Turnover

Financial statement analysis involves comparing cooperative union performance and evaluating trends in the unions’ financial position over time. Managers use financial statement analysis to identify situations demanding attention; potential lenders use financial analysis to determine whether the union is creditworthy; and stockholders use financial analysis to help predict future earnings, dividends, and free cash flow.  This study is conducted on Assessment of Financial performance of Agricultural Cooperative unions: the Case of West Harerghe zone, Oromia region, Ethiopia. The general objective of this study was to evaluate financial performance of agricultural cooperative union. For this study, the researchers used both primary and secondary sources of data taken from purposively selected two cooperative unions (i.e. Burka Galeti and Chercher Oda bultum) since they do have audited financial statements out of five unions found in western Haraghe. The study also used FGD and interview with fiancé managers and employees of the union for further explanation. Based on the financial statement analysis the researchers found that the agricultural cooperatives are efficient and effective in asset utilization, activity and debt equity management ratios. However, the financial statement analysis showed that the current asset ratio is below the industry standard   that cannot cover its short term liabilities form its current asset section of the balance sheet. Moreover, the profitability ratio of the unions revealed that the agricultural cooperative unions are efficient to make profit but the margin of profit is below 25% that cannot make the union successful to cover all the incidental costs that are borne within short and long-term periods. The OLS model revealed that quick, fixed asset turnover, total asset turnover, inventory turnover and gross profit margin ratios are significantly and positively affecting ROA. As a result, the researchers recommend that the agricultural cooperative unions are expected to improve its effective and efficient management of the day to day activities of the union. Furthermore, the unions are expected to higher managers who have the caliber to manage each and every activities of the union and who are visionary to bring success for the unions.

scholarly journals ANALISA KINERJA KEUANGAN PADA PERUSAHAAN METAL AND ALLIED PRODUCT YANG TERDAFTAR DI BURSA EFEK INDONESIA

2014 ◽  
Vol 4 (2) ◽  
pp. 82
Author(s):  
Juniarti Juniarti ◽  
Salamatun Asakdiyah
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Secondary Data ◽  
Total Activity ◽  
Financial Statement ◽  
Asset Turnover ◽  
Inventory Turnover ◽  
Solvency Ratio ◽  
Profitability Ratios

The financial performance of companies known by analysing financial statements, the analysis conducted is the Current Ratio, Liquidity Ratio, Ratio of Current Assets Cash and Cash Ratio of Current Debt, Solvency Ratio of Total Debt for Equity and Debt Ratio of Assets, Ratio of Total Activity Assets Turnonver Ratio and Inventory Turnover Ratio, Profitability Ratio of Profit Margin Ratio and Return On Investment Ratio. This study used secondary data contained in the Indonesia Stock Exchange in the form of financial statement balance sheet and profit and loss of all three Metal and Allied Products Company for five years from 2005-2009. By using ratios – financial ratios above then the results is to provide ratings (ranking) on each – each company include: PT. Betonjaya Manunggal Tbk., rank (rank), the first based on the financial performance ratios liquidity ratios, solvency, activity, and profitability. PT. Lion Metal Works Tbk., rank (rank), second because one ratio is the ratio of the activity on the total asset turnover underperforming because fewer than than 1 times the velocity. PT, Jaya Pari Steel Tbk., rank (rank) third because in addition to the activity ratio, second ratio is the ratio of fluctuating liquidity and profitability ratios is not good.

scholarly journals Financial Analysis of Finance Companies in Pokhara: A Comparative Study of Pokhara Finance Ltd. and Annapurna Finance Company Ltd.

2006 ◽  
Vol 1 (1) ◽  
pp. 101-106
Author(s):  
Krishna Prasad Upadhyay
Keyword(s):  
Comparative Study ◽  
Financial Performance ◽  
Financial Analysis ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Business Studies ◽  
Competitive Strength ◽  
Finance Company

Every business entity should be able to enhance their competitive strength through achieving the financial goals. Financial statement analysis should be adopted to appraise the financial performance of the concerned companies. Information and results obtained from financial analysis are important to all stakeholders. Interest of the different stakeholders is conflicting. Out of different stakeholders, managements of the companies worry about their financial performance. So, in this paper, an attempt to analyze the financial performance of Pokhara Finance Company and Annapurna Finance Company has been made. Journal of Nepalese Business Studies Vol.1(1) 2004 pp.101-106

scholarly journals ANALISIS KINERJA KEUANGAN PADA PT. HANJAYA MANDALA SAMPOERNA Tbk.

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Rona Rosy Nimiangge ◽  
Harijanto Sabijono ◽  
Hendrik Gamaliel
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Financial Analysis ◽  
Information Source ◽  
Profit Margin ◽  
Financial Statement ◽  
Operating Profit ◽  
Net Profit ◽  
Turn Over ◽  
Profitability Ratios

Development in technology that happen continuously have made the skills in financial analysis are more needed. Financial statement are the information source for financial position and company financial ferformance analysis.Evaluation of company financial performance in this research  using activity ratio and profitability ratio. This research using PT. Hanjaya Mandala Sampoerna Tbk as objek, this decision are based as 1 of 4 big company in cigarettes industry in Indonesia. The summary problem  in this research is,” How the financial performanceat PT. Hanjaya Mandala Sampoerna Tbk. Based on activity ratio and profitability ratio for year 2015 and 2016?” The activity ratios are calculated with account receivable Turn Over,Inventory Turn Over, Total Asset Turn over,Otherwise Profitability Ratio are calculated with Gross profit  Margin, Operating Profit Margin, and Net Profit Margin. The results showed that the ratios of poor activity were seen from the decline in value in the period 2015-2016, while the profitability ratios increased in the period 2015- 2016 which indicates the company's ability to generate profits has increased.Keywords : Financial Performance Analysis, Activity, Profitability

scholarly journals IPTEKS PENGUKURAN KINERJA KEUANGAN PADA PT. PLN (PERSERO) WILAYAH SULUTTENGGO

2018 ◽  
Vol 2 (02) ◽  
Author(s):  
Regina F. Pinontoan ◽  
Natalia Y. T. Gerungai
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Ratios ◽  
Ratio Analysis ◽  
Financial Ratio ◽  
Leverage Ratio ◽  
Financial Ratio Analysis ◽  
A Company

The measurement of financial performance based solely on balance sheet financial statements and profit and loss is able to provide information on the feasibility of a company on the obligations of external parties and also assets owned by the company. From the results of financial statement analysis using financial ratio analysis of PT. PLN (Persero)Region  Sulutttenggo can evaluate the financial performance of companies that show unfavorable conditions where the value of the liquidity ratio is less stable and even decreases. Whereas the results of the calculation of leverage ratio and profitability ratio show fairly good conditions. Thus, the writer suggest that the management always evaluate in improving the company's financial performance.Keywords : financial statement, financial performance, financial ratios

scholarly journals Financial Performance of Janapriya Multiple Campus Pokhara

2018 ◽  
Vol 7 (1) ◽  
pp. 35-45
Author(s):  
Hari Bahadur Bhandari
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Recovery Rate ◽  
Balance Sheet ◽  
Cost Recovery ◽  
Financial Statement ◽  
Development Fund ◽  
Income Statement ◽  
Internal Sources ◽  
Profitability Ratios

Financial performance analysis is based on financial statement. Financial statement is the final product of accounting process. Fundamentally, financial performance analysis refers to financial statement analysis to identify financial strength and weaknesses by establishing appropriate relationship among the figures of income statement and balance sheet. The main objective behind this study was to assess the financial performance of Janapriya Multiple Campus (JMC). Beside this, it also aimed to compare the financial performance and analyze the financial changes over a period of five years along with examining the cost recovery rate of JMC. This research was done with the help of secondary data entirely gathered from the annual report and official documents of the campus. The financial performance measured by using various financial/accounting and statistical tools such as common size financial statement, horizontal trend percent analysis, profitability ratios, mean and standard deviation. Based on the analysis, internal sources of fund including reserve and surplus, long term fund and campus development fund contribute more than 65% of the total liabilities/total assets. The highest percentage of permanent capital and fixed assets denote that the durable assets and fixed deposit amount were covered by the internal sources of fund. Findings have been arrived that the campus has got enough current assets to meet its current liabilities. The income statement shows total revenues increased every year at good rate and profit also increased every year except the years of 2070/71 and 071/72. In average, all profitability ratios are positive. Moreover, the analysis of collected data showed that there is no high fluctuation in the calculated profitability ratios and cost recovery rate. There exist positive relationship between revenue and expenses but the relationship is insignificant. Revenue explains 52.3 percent variation of variation in expenses. However, the institution is financially viable and there is a strong possibility to make money in long run.

scholarly journals Analisis NPM, ROA, dan ROE dalam Mengukur Kinerja Keuangan

2019 ◽  
Vol 28 (02) ◽  
pp. 254-266
Author(s):  
Slamet Heri Winarno
Keyword(s):  
Financial Performance ◽  
Balance Sheet ◽  
Financial Statement ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Average Ratio ◽  
Profitability Analysis ◽  
Income Statement ◽  
Net Profit

This research aims to determine the financial performance of an expedition company based on company profitability analysis. Indicators of profitability used include the ratio of Net Profit Margin (NPM), Return On Assets (ROA) and Return On Equity (ROE) in 2016 to 2018. Assessment of company performance is done by comparing the rentability ratio with the average ratio Industry and Bank Indonesia standards. The data used are financial statement data that is balance sheet and income statement report for year 2014 until 2016. Result of research indicate that overall rentability performance show good value, but compared with industry average performance of NPM year 2014 show less result Good, while ROA and ROE performance during 2015 and 2016 has not shown satisfactory results because it is below the industry average. Overall financial performance of the company can be said good.

scholarly journals Analysis of Company Financial Performance Perum Jasa Tirta

2020 ◽  
Vol 3 (3) ◽  
pp. 25-31
Author(s):  
Yuli Agustina ◽  
Wita Ryani Juniar ◽  
Heri Pratikto ◽  
Ely Siswanto
Keyword(s):  
Financial Performance ◽  
Financial Statement ◽  
Financial Ratios ◽  
Analysis Method ◽  
Excellent Performance ◽  
Financial Statement Analysis ◽  
Poor Condition ◽  
Activity Ratios ◽  
Profitability Ratios

The purpose of this study is to determine the financial performance of Perum Jasa Tirta I Malang-East Java for the period 2009-2018. This type of research used in this study is a description and the method used to measure financial performance is one of the methods of financial statement analysis. The financial statement analysis method involves several financial ratios namely liquidity ratios, leverage, activity and profitability and is measured based quantitatively data. The results showed that: Information on financial performance is needed in maintaining the company's existence; this is evident from the results Financial performance of Perum Jasa Tirta I, as seen from profitability ratios and leverage ratios, showed excellent performance even though profitability ratios and activity ratios are known to be in poor condition.

scholarly journals Topics In Finance Part II - Financial Analysis

2010 ◽  
Vol 3 (3) ◽  
pp. 81-88
Author(s):  
Judy Laux
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Financial Statement ◽  
Managerial Behavior ◽  
Financial Statement Analysis ◽  
Stock Valuation

The second article in a series designed to supplement the introductory financial management course, this essay addresses financial statement analysis, including its impact on stock valuation, disclosure, and managerial behavior.

The Effect of COVID-19 on the Tourism Sector in Turkey

2021 ◽  
pp. 69-91
Author(s):  
Duygu Şengül Çelikay ◽  
Ferdi Çelikay
Keyword(s):  
Financial Performance ◽  
Financial Statement ◽  
Short Term ◽  
Financial Statement Analysis ◽  
Analysis Techniques ◽  
Tourism Sector ◽  
Fixed Assets ◽  
Total Profit ◽  
Support Policy

This study aims to reveal the effect of COVID-19 on the financial performance and position of the tourism sector. The financial statement data of the firms traded in the restaurants and hotels sub-sector in Borsa Istanbul were analyzed by using financial statement analysis techniques. According to the comparative income statements, the firms' total profit turned into a loss by declining 181%. The first 9-month analyses are essential in revealing the significant decrease in the firms' revenues and the fact that the expenses could not be reduced; the firms sold fixed assets and realized capital increases to continue their activities. The policymakers should develop a comprehensive cash support policy and develop short-term measures such as cost-free financing opportunities and expanding loan opportunities to reduce the damage.

The Use Of Altman Equation For Bankruptcy Prediction In An Industrial Firm (Case Study)

2011 ◽  
Vol 7 (7) ◽  
Author(s):  
Khalid Al- Rawi ◽  
Raj Kiani ◽  
Rishma R Vedd
Keyword(s):  
Durable Goods ◽  
Financial Analysis ◽  
Bankruptcy Prediction ◽  
Financial Statement ◽  
Z Score ◽  
Financial Statement Analysis ◽  
Future Performance ◽  
Score Analysis ◽  
Study Results ◽  
The Given

Financial analysis provides the basis for understanding and evaluating the results of business operations and explaining how well a business is doing. In addition, the financial statement analysis can help creditors, investors, and managers answer the following questions: Can the company pay the interest and principal on its debt? Does the company reply too much on non-owner financing? Does the company earn an acceptable return on invested capital? Is the gross profit margin growing or shrinking? Does the company effectively use non-owner financing? Are costs under control? Is the companys market growing or shrinking? Do observed changes reflect opportunities or threats? Is the allocation of investment across different assets too high or too low? Furthermore, financial statement analysis reduces our reliance on hunches, guesses, and intuition. Above all, it reduces risk and/or uncertainty in decision making. Therefore, to reduce risk, uncertainty, and avoid bankruptcy one must appreciate the usefulness of financial statement analysis by using some tools and techniques to evaluate and project the future performance of the firm within a given industry.The researchers used the Altman z-score analysis to predict a firms insolvency. The study results for the period 2002-2004 indicated the weaknesses of Jordan Establishment for Marketing Durable goods. The z-score from the analysis (for the given period) was less than 1.81 (z-score <1.81).Evidence suggests that the firm has increased its debt and will be facing bankruptcy in the near future. In liquidity ratios, the percentage of the working capital is less than 1, indicating an increase in liabilities over assets. Leverage ratios increased from 41.7% to 56.7%, while inventory turnover decreased by 1.2 times through the given period. Net profit to total sales reduced from (1.3) to (1.8) for the same period. Also, the assets return percentage declined from (-9.29%) to (-10.3%), while the stock book value declined from (0.95) JD to (0.67) JD through the given period. The main features provide a gloomy picture and indicate inefficiencies within the firm.

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