Financial performance evaluation of multi-purpose cooperatives in ifugao: A basis for policy recommendations

Cooperation seeks to harness the limited resources of people of small means and opportunities for the fulfillment of economic and social needs. Having recognized the great impact of cooperatives on the lives of the people, the government hereby declared the policy of the State to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development as embedded under R.A. 6939, section 1 of the cooperative code of the Philippines. This research aims to examine the financial performance of multi-purpose cooperatives in Ifugao to examine their liquidity, solvency, operating efficiency and overall profitability. Seven multi-purpose cooperatives with duly audited financial statements three years back were included in the study. Using the descriptive research design, the data was computed, tabulated and transformed into a form easy to understand. Selected financial performance measures like profitability analysis, liquidity analysis, solvency ratios and operating efficiency tools was used to measure the financial performance of the cooperatives. The findings will serve as a basis for policy formulation for the cooperative to improve their performance for the benefit of the members.