Financial Performance of Cooperatives in Cagayan Valley, Philippines

Abstract

An analysis of the audited financial statements that were obtained from twenty two (22) medium and large cooperatives in Cagayan Valley was conducted using the PESOS indicators of the performance standards for credit and other types of cooperatives with credit facilities in the Philippines. Descriptive statistic was applied in analyzing the data gathered through the questionnaire. ANOVA was used to test the quantitative difference on the financial performance of cooperatives among provinces in the region.
All the cooperatives evaluated have an overall unsatisfactory financial performance and they are in need of immediate remedial attention. They have a high probability of failure and they will likely require liquidation. Six (6) problems are identified by the senior managers as of great importance or pressing problems, these are (1) insufficient operational capital; (2) too much dependence on borrowed capital; (3) lack of development plan, budget and operational policies; (4) lack of harmonious relationship within the organization; (5)lack of networking or alliances; and (6) high incidence of past due loans or low receivable turnover. All these problems need immediate and appropriate decisions and actions for the success of the cooperatives and to increase their role in development.
Region-wide comparison revealed that in all the parameters, there is significant differences on the financial performances of cooperative among provinces within the Cagayan Valley.