Professional Documents
Culture Documents
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CHAPTER 1
The financial ratios can be called meters that are calculated from the official
financial statements. These meters are most commonly being used to depict financial
performance of a certain company. From types of financial analysis, it could be said that
the ratio analysis is the most common and popular way to analyze financial statements.
Financial ratios are very useful for businesses as they can concentrate excessive amounts
According to Niskanen J. and Niskanen M. (2012), the name “ratio” is somewhat self-
explanatory, as it measures a relation with one number to another. The ratios are usually
presented as percentages since this is very convenient as two companies of very different
sizes, might still be as profitable, as these ratios are relations of their own account entries
reflected to their own, such as, turnovers or balance sheet totals. If the balance sheet and
income statement are not converted into percentages yet, the ratios are usually multiplied
by a hundred, to get a percentage. This is the case in this thesis, as without converting the
and change its name to Baug CARP Beneficiaries Multi-Purpose Cooperative. Baug
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regular deposits, time deposits, special savings, youth savings, salary loan, pension loan,
agri/production loan, commercial loan, housing loan, and vehicle loan. Baug CARP
Beneficiaries Multi-Purpose Cooperative produces their own products too, and sells them
through their consumer store. Products available in the consumer store are sugpo/bangus
fry, lime, fertilizers, tea-seed powder, feeds for sugpo/bangus, and other fishpond inputs.
The objective of this research study is to know the financial ratio analysis of Baug
management as an aid for the presentation of the financial performance of the cooperative
The results of this study were expected to propose improvements for Baug CARP
This study was anchored on the Performance Report Standards for Cooperatives
Series 2013 by Cooperative Development Authority (2013), which states that financial
statements can be analyzed using financial ratios, which are profitability performance,
institutional strength, structure of assets, and operational strength. Figure 1 shows the
schematic diagram of the study, Financial Ratio Analysis of Baug CARP Beneficiaries
Multi-Purpose Cooperative. The first box contained the needed inputs, which are audited
financial statements – audited balance sheets, audited statement of cash flows and audited
income statement.
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The second box contained the financial ratio analysis in terms of profitability
shareholders' equity at a specific point in time, and provides a basis for computing rates of
return and evaluating its capital structure. Balance sheets provides a snapshot of what a
performance is assessed by giving a summary of how the business incurs its revenues and
expenses through both operating and non-operating activities. It also shows the net profit
Statement of Cash Flows. The statement of cash flows as defined by Valix (2013)
information about the cash receipts and cash payments of an entity during the period.
number of functions to discharge. As the name indicates its responsibility for different
purpose for which it has been set up. It can work for arranging credit, improved seeds,
agricultural implements, fertilizers, sanitation, health etc. for its members. Normally it
relative to sales, assets and equity. This is taken into account because it assesses the
ability of a company to generate earnings, profits, and cash flows relative to some metric,
often the amount of money invested. This ratio also highlights how effectively the
By stability, we mean durability. Institutions are stable to the degree that they survive not
Structure of Assets. This the proportions of various types of asset held by a firm as
shown in the balance sheet. A firm's asset structure helps to determine the way in which
finance is raised, in particular the balance of long-term loans and short-term debt.
Operational Strength. A company's strengths are the tools used to counter threats
innovative technology, facilities located in strategically important areas, low waste and
production capacity.
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Assumption
The financial ratio analysis has a significant bearing to Baug CARP Beneficiaries
The findings of the study will be beneficial and significant to the following:
Multi-Purpose cooperative. The findings of this study will help cooperatives assess their
financial performance.
Investors. It will help the investors determine whether their investments will be returned
with profit.
Future members. In a cooperative, the members are the owners. This study will help
Community. Cooperatives are made for and have an impact to the community.
Future Researchers. The findings in this research will serve as basis for future studies.
The study is focused on the financial ratio analysis of Baug CARP Beneficiaries
Multi-Purpose Cooperative. The setting of the study is located in the city of Surigao. The
independent variables considered in this study are Baug CARP Beneficiaries Multi-
flows and income statements. The dependent variables are the financial ratios in terms of
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strength.
Definition of Terms
Profitability ratios are financial metrics used by analysts and investors to measure
and evaluate the ability of a company to generate income (profit) relative to revenue,
balance sheet assets, operating costs, and shareholders’ equity during a specific period.
They show how well a company utilizes its assets to produce profit and value to
shareholders.
Earnings per share (EPS) ratio measures how many dollars of net income have
been earned by each share of common stock. It is computed by dividing net income less
preferred dividend by the number of shares of common stock outstanding during the
expressed in dollars.
Asset Efficiency Rate is also called asset turnover ratio that measures the
amount of sales or revenues to its total assets. The asset turnover ratio calculates the net
Percentage of Non-Earning Assets does not generate income for the owner.
Members’ Equity refers to the net worth of the business, and its allocation to each
partner. The equity equals the total assets of the business minus the total liabilities.
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profits earned, losses incurred or withdrawals made by the partners. The equity
component often receives the most scrutiny since it directly affects each member’s
External borrowing is the portion of a country's debt that was borrowed from
institutions. These loans, including interest, must usually be paid in the currency in which
Receivable to total assets is an activity ratio measuring how efficiently a firm uses
its assets. Receivables turnover ratio can be calculated by dividing the net value of credit
sales during a given period by the average accounts receivable during the same period
Deposit liabilities (or liability) .Money that people and companies have put into
banks, and that the banks will have to pay back at some time in the future.
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Cost per volume of business. This measures the efficiency in managing the
cooperatives business.
business to produce desired results with a minimum expenditure of energy, time, money,
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CHAPTER 2
The purpose of this study is to review the related literature and studies, which have
direct bearing with the present study. This includes books, articles and internet resources.
It started with more or less 30 individuals from different occupations, became crab
hunters in the damp town site of Magallanes, at the delta of the Agusan River way back
1985. They were developing the swamps into fishpond areas and were paying the land
rental to the Municipal Local Government of Magallanes. Their struggle to own the land
164.7 hectares of swamp, which they patiently developed for years, was awarded through
issuance of a Certificate of Land Ownership Award (CLOA). In the same year, they
registered with the CDA using the ₱39,200.00 cash contribution from its members. The
cooperative is popularly known today as “BAUG”. The term stands for Baug CARP
for fishpond development, and shrimp production, which steadily grew in 1995 – 2002.
The profit derived from business was used in the construction of cooperative building.
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During this period, production loan and annual shrimp harvest was good, and the income
of the cooperative, including that of the Agrarian Reform Beneficiaries (ARB) members
improved.
In 2003, the White Spot Syndrome Virus (WSSV) hit the municipality of
Magallanes. The virus wiped out all prawn farms and multi-million cooperatives, and
prawn farm operators got bankrupt but God spared BCBMPC. The cooperative continued
to operate through Bayanihan. The Board of Directors’ honoraria was reduced by 80%.
The cooperative employees agreed to reduce salary by 50%. The affected members were
offered liberalized loan settlement and restructuring program. These strategies are
effective in increasing collection and improving coop cash balance. The members also
Today, BCBMPC has eight (8) branches operating in the cities of Butuan,
Buenavista, Kitcharao and Las Nieves in the Province of Agusan del Norte. BCBMPC
now ranks as one of the top cooperatives of Caraga Region and the only organization with
programs for Agrarian Reform Beneficiaries, the LGU and Community, Environmental
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agrarian reform law of the Philippines whose legal basis is the Republic Act No. 6657,
redistribution of private and public agricultural lands to help the beneficiaries survive as
small independent farmers, regardless of the “tenurial” arrangement. Its goals are to
and productivity, provide employment to more agricultural workers, and put an end to
relatively easy; understanding and interpreting what they say about a company's financial
status takes a bit more work. Ratios serve as a comparative tool of analysis for liquidity,
profitability, debt, and asset management, among other categories—all useful areas of
financial statement analysis. Companies typically start with industry ratios and data from
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their own historical financial statements to establish a basis for ratio comparison.
Analysts compare the ratios for a given firm to the ratios of other firms in the same
industry and against previous quarters or years of historical data for the firm itself
(Peavley, 2018).
Financial Ratio
of two significant figures taken from financial statements. It expresses the direct
relationship between two or more quantities in the statement of financial position and
income statement of a business firm. Through ratio analysis, the financial statements user
comes into possession of measures, which provide insight into the profitability of
operations, the soundness of the firms’ short-term, and long-term financial condition and
the efficiency with which management has utilized the resources entrusted to it (Cabrera,
2017).
The firm needs to make an in depth review and evaluation of its financial
statement with financial tools called ratios. Ratios involve the methods of calculating and
interpreting financial statement to assess the firm’s performance and status. The basis
inputs here are the income statement and the balance sheet for the period to be examined
Financial Statement
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the financial performance of an entity. The end product or main output of the financial
accounting are formulated and processed information concerning the financial position,
performance and cash flows of a company used in making sound economic decisions
(Valix, 2014).
Income Statement
Income Statement is a financial report that shows an entity's financial results over
a specific period. The time period covered is usually for a month, quarter, or year, though
partial periods may also be used. This is the most common financial statement, and is the
Tools, 2016).
the first financial statement that can be found in the annual report. It shows the revenue,
expenses and profit for the company during the past year. It can be used to figure out cash
flow, profit margins, and other financial metrics for the business. Most importantly,
income statement contains the proverbial bottom line: profits (Investor Guide, 2016).
Expenses decrease in economic benefits during the accounting period in the form
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the following: cost of sales, operating expenses, interest expenses, the decrease in owner's
economic benefit during the accounting period in the form of income inflows or
which summarizes the operating, investing, and financing activities of an entity. In simple
language, it provides information about the cash receipts and cash payments of an entity
Balance Sheet
a particular date. The statement is a summary of what the firm's own (asset) and what the
firm's owes to outsiders (liabilities) and to internal owners (stockholder's equity). Assets
are valuable resources owned by entity, per framework asset is a resource controlled by
the enterprise because of past events and from which future economic benefits are
expected to flow to the enterprise. Current Assets include cash and these assets are
expected to be converted into cash, used or consumed within one year or one operating
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cycle whichever is longer. Accounts under current assets are cash equivalents, marketable
securities, accounts receivables, inventories, prepaid expense and property, plant and
equipment.
Non-current Assets are assets that are not expected to be consumed within one
year. If a company has a high proportion of noncurrent to current assets, this can be an
indicator of poor liquidity, since a large amount of cash may be needed to support on-
Some noncurrent assets, such as land, may theoretically have unlimited useful
lives. A noncurrent asset is recorded as an asset which when incurred, rather than being
gradually reduce the amount of a noncurrent asset on the balance sheet. Noncurrent assets
are aggregated into several line items on the balance sheet, and are listed after all current
Liabilities are obligations of the entity to outside parties who have furnished
resources. Per framework, liability is a present obligation of the enterprise arising from
past event, the settlements of which are expected to result in an outflow from the
Current Liabilities are those that must be satisfied in one year or on operating
cycle, whichever is longer. Current liabilities include accounts and notes payable, current
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on the balance sheet as non-current liabilities. This category can include bonded
indebtedness, long term payable, mortgages, and obligations under leave, pension
Owners’ Equity is residual interest in assets that remain after deducting liabilities.
Accounts included are share capital, additional paid-in-capital, retained earnings and
statement and related data for making business decisions. It involves transforming
accounting data into a more useful information. Financial statement analysis reduces our
does not lessen the need for expert judgment; instead, it provides an effective and
CDA is a proactive and responsive lead government agency for the promotion of
sustained growth and full development of Philippine cooperatives for them to become
broad-based instruments of social justice, equity and balanced national progress. The
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types of cooperatives in the Philippines. In order to qualify, a cooperative must have at-
least 15 members. The proposed business name, which should include the word
“cooperative”, must be submitted to the CDA office, and all other necessary requirements
such as the economic survey, articles of cooperation and its by-laws and the names of the
Cooperatives
the purpose of identifying problem areas in the operation and determining the state of the
According to CDA (2015), the standard financial ratios to be used for Profitability
Performance are Profitability Ratio, Earning per Share Ratio, Asset Efficiency Rate and
Rate of Interest on Share Capital. For Institutional Strength the required ratios are Net
Institutional. For the Structure of Assets the ratios would be Percentage of non-earning
Assets to Total Assets, Members’ Equity to Total Assets, Deposit Liabilities to Total
Assets, External Borrowings and Receivables to Total Assets. Lastly for the Operational
Strength of the cooperative the required ratios by the CDA are Volume of Business to
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Total Assets, Solvency Ratio, Liquidity Ratio, Cost per Volume of Business and
Administrative Efficiency. These are all based on the ratios required by CDA.
Profitability Performance
Profitability is the primary goal of all business ventures. Without profitability, the
business will not survive in the long run. Therefore, measuring current and past
profitability and projecting future profitability is very important. Whether you are
recording profitability for the past period or projecting profitability for the coming period,
measuring profitability is the most important measure of the success of the business. A
business that is not profitable cannot survive. Conversely, a highly profitable business has
the ability to reward its owners with a large return on their investment (Hofstrand, 2009).
According to Schmidt (2018), asset structure shows how the firm's asset base is
assets such as buildings and factory machines dominate the asset structure. Assets are
measurable cost and use them for generating earnings. As a result, assets must justify
their place on the Balance sheet by bringing in returns. The firm's asset structure
Business people use the term structure in several different ways. Most people in
business are familiar with capital and financial structures. These terms refer to the
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"Liabilities and Equities" side of the Balance sheet. These structures show how the firm
uses funds from owners and from creditors to earn income. Similarly, firms acquire assets
in different assets categories, trying to maximize returns from the asset base.
Institutional Strength
A cooperative exists and operates for the benefit of its patron members. At the
same time, since the members are also the owners, they have a financial interest in the
success of the cooperative, which sways them toward giving it their full support and
patronage. Cooperative members also have a voice in the control of the organization, and,
within the limits of majority rule, it therefore supplies the kind of service they want.
These tend to tie the patrons to the organization by making them full partners, help build
an assured volume of business. This in turn is favorable to the efficient operation of the
Structure of Assets
acquire assets at a measurable cost and use them for generating earnings. As a result,
assets must justify their place on the Balance sheet by bringing in returns. The firm's asset
structure represents its strategy for earning from its asset base (Schmidt, 2018).
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Operational Strength
Every company and every market will experience difficulties. Even the best firms
are subject to lapses and may encounter disasters due to chance or mistake of their own
management that may help managers create competitive advantage and staying power
(Cusumano, 2018).
The related studies have significant bearing to the present investigation in as much
as they discussed the analysis of the business, which was closely related toward Baug
researchers will utilize the formulae given by the Cooperative Development Authority
(CDA) to treat the audited financial statements of BCBMPC. The data were analyzed
using ratio formulae in order to get the profitability performance, institutional strength,
structure of assets, and operational strength of the cooperative. As a whole, the difference
between the reviewed literatures and the present study were the participants involved.
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CHAPTER 3
METHOD
This chapter presents the research design, participants, instrument, data gathering
Research Design
The researchers utilized the quantitative study using documentary analysis that
involves the collection of business documents such as Balance sheets, income statements,
and statement of cash flows relating to the accounts of BCBMPC that were used for
Participant
The participant of the study is the branch manager of Baug CARP Beneficiaries
Republic of the Philippines Cooperative Development Authority (CDA) and it has been
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Instrument
The study utilized the financial ratio analysis from CDA’s (Cooperative
The researchers sent a letter asking permission from the Baug CARP Beneficiaries
Multi-Purpose Cooperative branch manager in Surigao City to obtain the data needed for
the study, specifically documents such as audited balance sheets, audited income
statements, and audited statement of cash flows to gather information as well as the
data gathered were computed, analyzed, and interpreted using financial ratio analysis.
Ethical Considerations
The researchers considered the following ethics during the conduct of this research:
Consent from the respondents was taken and appropriate permission was ensured
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DATA ANALYSIS
The financial statements were analyzed using the following financial ratios and
the performance report standards of cooperative by the CDA (Cooperative Development
Authority).
Earnings per Share Ratio. This was used to measure the capacity of
Asset Efficiency Rate. This was used to measure the efficient use of assets
to generate surplus.
Rate of Interest on Share Capital. This was used to measure the return on
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Institutional Strength.
Net Institutional Capital. This was used to analyze how strong the
cooperative.
Structure of Assets. The firm's asset structure represents its strategy for earning from its
asset base.
Member’s Equity to Total Assets. This was used to measure the degree of
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Operational Strength. A company's strengths are the tools used to counter threats and
seize opportunities
Volume of Business to Total Assets. This was used to measure the capacity
earnings.
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Cost per Volume of Business. This was used to measure the efficiency in
Administrative Efficiency.
Formula: Administrative Cost - (members’ benefit expense + social service
expense)
Average Total Assets
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CHAPTER 4
RESULTS AND DISCUSSIONS
This chapter presents the result and discussions of the data gathered in this
study.
PROFITABILITY PERFORMANCE
Table 1 shows the result of financial ratios as to profitability performance that will
Profitability Ratio
Parameter Standard Points Verbal Interpretation
30% and above 4 Excellent
25% to below 30% 3 Very satisfactory
10% to below 25% 2 Satisfactory
5% to below 10% 1 Fair
Below 5% 0 Needs improvement
Earnings per Share Ratio
Parameter Standard Points Verbal Interpretation
₱2.00 to above 4 Excellent
₱1.50 to below ₱2.00 3 Very satisfactory
₱1.00 to below ₱1.50 2 Satisfactory
Below ₱1.00 to ₱0.75 1 Fair
Zero or negative 0 Needs improvement
Asset Efficiency Rate
Parameter Standard Points Verbal Interpretation
20% and above 4 Excellent
15% to below 20% 3 Very satisfactory
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points according to CDA’s performance report standards for cooperatives which indicates
that the cooperative is able to earn good profit and return on investment. In 2017, a
profitability ratio of 23.86% was recorded, which is two (2) points according to CDA’s
Performance Report Standards for Cooperatives. This means that the cooperative’s
performance in terms of generating surplus was very satisfactory in 2016, and satisfactory
and owners alike. If a small business has outside investors who have put their own money
into the company, the primary owner certainly has to show profitability to those equity
investors. The cooperative accumulated huge amounts of assets from the donations and
financial assistance that it constantly receives, not to mention that the cooperative also has
few payables to take care of. This resulted to high operating surplus.
As to Earnings Per Share Ratio, the cooperative reported a ratio of ₱2.25 and
₱2.33 in 2016 and 2017, respectively. The cooperative scored four (4) points in both
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years, according to CDA Performance Report Standards for Cooperatives. This means
According to Wet (2014), earnings per share ratio is considered to be the single most
popular, widely used financial performance benchmark of all. Earnings per share ratio is
simple to calculate and easily understood and management is congratulated when there is
As to Asset Efficiency rate, the year 2016 and 2017 had a result of 4.76% and
5.27%, respectively, or zero (0) and one (1) point (below 5% and 5% to below 10%)
according to CDA Performance Report Standards for Cooperatives. This indicates that, in
generate revenue or sales and had fair performance in the following year. According to
Corporate Finance Institute (CFI™ 2015), a company with a high asset turnover ratio
operates more efficiently compared to competitors with lower ratios. The cooperative is
in 2016, and 7.29% in 2017. Philippines had the inflation rates of 1.78% and 3.18% in
2016 and 2017, respectively. The cooperative scored four (4) (higher than the inflation
rate), according to CDA standards. This indicates excellent return on members’ share
capital. Having an excellent rate of interest on share capital may indicate that the
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INSTITUTIONAL STRENGTH
and 11.69% in 2017, both scored four (4) in CDA Performance Report Standards for
after subtracting allowance for probable losses in both years. According to Richardson
(2012), institutional capital growth is the best indicator of profitability within credit
unions. Static or declining growth trends in institutional capital usually indicate a problem
with earnings. Having an excellent net institutional capital, it can be inferred that the
35
STRUCTURE OF ASSETS
36
percentage of non-earning assets of 13.70% and 13.39%, respectively, or three (3) points
(10% to below 25%) according to CDA Performance Report Standards for Cooperatives.
Lesser non-earning assets are a positive indication. The cooperative had very satisfactory
performances in both years. According to Kennon (2018), non-earning assets are things
that do not generate income for the owner. While earning assets are anything that directly
generates income, such as stocks that pay dividends, bonds that pay interest, real estate
properties that generate rents, copyright and patents that bring in licensing fees, and
As to Members’ Equity to total assets, in 2016 to 2017, the cooperative had a ratio
of 21.10% and 22.56%, or two (2) points (20% to below 30%) according to CDA
Performance Report Standards for Cooperatives, which means that the degree of
initial as well as additional money put in by the members to run the business. Lesser
members’ equity means lesser funds to run the business, but according to Wessell (2018),
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too many equity investors in a short period of time will dilute any returns you receive.
Furthermore, Coleman (2016) stated that when it comes to equity, enough is better than
too much.
As to Deposit Liabilities to total assets, in 2016 to 2017, the cooperative had ratios
of 31.11% and 31.04%, respectively, or four (4) points (30% to 40%) in both years
according to the CDA Performance Report Standards for Cooperatives. This means that
the cooperative has excellent percentage participation of deposit liabilities to total assets.
As a cooperative that offers bank-like services such as loans services, this is an indication
in 2016 to 2017, respectively, with corresponding scores of one (1) and two (2) according
to the Performance Report Standards for Cooperatives by the CDA. This indicates that the
borrowings. Normally these types of debts are in the form of tied loans, meaning that
these have to be used for a predefined purpose. This is also an indication that the
cooperative funds its activities mainly from outside sources such as grants, short-term
loans, long-term loan, or trade credit offered by a supplier. Further research revealed that
the cooperative was actually receiving hundreds of millions of donations and financial
assistance from outside sources and the government. This means that the cooperative did
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ratio of 57.70% and 55.52% in 2016 and 2017, respectively. Those are both three (3)
points (55% to below 60%) according to CDA Performance Report Standards for
Cooperatives. This indicates that the performance of the cooperative was very
satisfactory. According to Kedia (2010), too much receivables mean that the credit policy
of the business may not be sound, because too much money is locked up in the
OPERATIONAL STRENGTH
39
percentage of 17.49% and 17.66%, respectively, or one (1) point (5% to below 25%)
according to the CDA Performance Report Standards for Cooperatives. This means that
the cooperative has fair performance in terms of the capacity of cooperative’s assets to
generate business.
had very satisfactory performance in dealing with its long-term obligations in 2016, and
satisfactory performance in the following year. According to Gaist (2009), solvency can
be described as the ability of a firm to meet its long-term fixed expenses and to
40
2016, and 67 cents of 2017. According to CDA Performance Report Standards for
Cooperatives, these ratios both scored zero (0). This indicates that the cooperative needed
10.46% in 2016 and 2017, respectively. The cooperative scored two (2) and three (3),
according to CDA Performance Report Standards for Cooperatives. This indicates that the
desired results with a minimum expenditure on energy, time, money, personnel, and
41
Rationale
The objective of this study is to know the financial ratio analysis of Baug CARP
as an aid for the presentation of the financial performance of the cooperative and to keep
42
Structure of Assets
External borrowings The cooperative had high In terms of structure of
dependence to external assets, the cooperative
borrowings. Further research may need not to tackle this
revealed that the main factor concern, for the Central
were the huge amounts of Bank of the Philippines
donations and financial and the Rehabilitation
assistance from outside sources. Finance Corporation are
willing to lend or provide
financial assistance to
cooperatives.
Operational Strength
Volume of business to The cooperative’s assets that do The cooperative may
total assets generate business did not have increase the volume by
the satisfactory capacity. utilizing its assets in
marketing their products
As discussed earlier, the volume and services, and by
of business was low because the considering expansion of
Cost per volume of cooperative was not utilizing business.
business much of its assets to generate
business. Despite of it, the The cooperative may
cooperative still has to spend for improve cost per volume
the costs of operation, making it of business by increasing
look like the cost management is the volume of business.
poor.
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CHAPTER 5
the study.
Summary
This study focused on the financial ratio analysis of Baug CARP Beneficiaries
Cooperative for the year 2016-2017 included the income statement, balance sheet and
statement of cash flows. The financial ratios were profitability performance, structure of
The study used the descriptive design using documentary analysis in the form of
their audited financial statements which were the income statement, balance sheet and
statement of cash flow of 2016 and 2017. The data were analysed and interpreted using
the financial ratios from the Performance Report Standards for Cooperatives provided by
44
Findings
1. As to profitability performance, asset efficiency rates in 2016 to 2017 were 4.76% and
5.27%, respectively. These scored zero (0) and one (1), which means that the cooperative
was having difficulties in generating revenue and sales from its assets.
2. As to structure of assets, external borrowings were 31.65% in 2016 and 28.81% in 2017,
which scored one (1) and two (2). The cooperative had high dependence to borrowing
from external sources rather than from its own assets when it comes to funding its
activities.
3. In terms of operational strength, the volume of business to total assets ratios were 17.49%
in 2016 and 17.66% in 2017. These garnered scores of on (1) and one (1), respectively. It
can be inferred that the volume of cooperative’s assets that do generate sales or revenue
were less compared to assets that do not generate revenue. The cooperatives cost per
volume of business ratios in 2016 and 2017 were 70 cents and 67 cents, respectively.
Both scored zero (0). These costs were too high and not beneficial to the cooperative. It
can be inferred that the cooperative’s businesses may have been managed inefficiently.
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Conclusions
Based on the findings of the study, the researchers concluded that Baug CARP
It was also found out that the reasons for the abovementioned concerns were the
huge amount of assets resulted from donations and financial assistance from outside
sources, not to mention that the cooperative also has very minimal payables. The
cooperative has excellent earnings per share ratio and rate of interest on share capital,
which sums up that they treat their members' contributions with high regards. Net
institutional capital and deposit liabilities are both excellent, making the cooperative an
Recommendations
In the view of the findings and conclusions of the study, the researchers
recommended that the proposed improvement plan for Baug CARP Beneficiaries Multi-
For further studies, future researchers are suggested to propose titles such as:
46
REFERENCES
Besley, S. & Brigham, E. (2015). Basic Finance Philippine Edition. Retrieved from:
CENGAGE Learning®
Cabrera, Ma. E. B. (2012). Financial Management: Principles and Applications.
Philippines: GIC Enterprises & Co., Inc
Cabrera, Ma. E. B. (2017). Financial Management: Principles and Applications.
Philippines: GIC Enterprises & Co., Inc
Valix, C.,et. al (2016). Financial Accounting Vol.1 Philippines: GIC Enterprises &
Co., Inc
Gaist, Paul A (2009). Igniting the Power of Community: The Role of CBOs and NGOs in
Global Public Health. Springer
Electronic Sources
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48
Appendix A
Letter to Conduct the Study
ST. PAUL UNIVERSITY SURIGAO
Surigao City
Dear Sir:
The researchers are conducting a research study entitled,” Financial Ratio Analysis of
Baug CARP Beneficiaries Multi-purpose Cooperative in Year 2016-2017.” as a
requirement for the degree of Bachelor of Science in Accountancy and Accounting
Technology.
In this connection, we respectfully ask your kind approval from your good office to allow
us to gather information from the concerned participants.
NIEL A. SECHICO
Researchers Professor
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Appendix B
Letter to the Participants
ST. PAUL UNIVERSITY SURIGAO
Surigao City
______________
MR. ERNANDO L. LAZARITO
Branch Manager
Baug CARP Beneficiaries Multi-Purpose Cooperative
Brgy. Taft, Surigao City
Thru: MS. GLERILYN J. YAMILO
BCBMPC Member
Dear Ms. Yamilo:
Greetings of peace!
In this connection, we humbly ask permission from you to allow us to gather information,
which will be needed for the fulfillment of the study. Any information obtained during
this study that could identify you will be kept strictly confidential.
We are hoping that our request will meet your high consideration and grant us the support
all throughout the completion of our study.
Thank you and God bless!
Respectfully Yours,
SECHICO, NEIL
Researchers