Assessment of the finanacial performance of Lamac Multi-Purpose Cooperative (LMPC) Lamac,Pinamungajan, Cebu, 1992- 2010.

Date

2011

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

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Abstract

The main objective of the study was to assess the financial performance of Lamac Multi-Purpose Cooperative (LMPC) from 1992-2010. Furthermore, the study was done with the following specific objectives: 1) describe the organizational structure of LMPC and its membership process; 2) identify the services/programs offered to its members; 3) compare the profitability of the services offered by the cooperative to its members; 4) determine the capital position and the profitability of LMPC from 1992-2010; 5) identify the perception of the member-respondents on the financial performance of the cooperative and the problems encountered by the LMPC; and 6) draw lessons from the cooperative. The study was conducted last Summer 2011 in Lamac Multi-Purpose Cooperative (LMPC), Barangay Lamac, Pinamungajan, Cebu. The researcher made use of primary data by conducting interviews as well as surveys in the form of questionnaires to selected respondents. Moreover, the researcher made use of secondary data by utilizing the records available in LMPC. For the sampling procedure, the researcher made use of a population list wherein the population were divided into three stratums which were

formed based on the members’ shared attributes/characteristics (i.e. agricultural member- respondents, non-agricultural member-respondents, or combination of both agricultural

and non-agricultural member-respondents). Analysis of the study was done by employing four (4) measures such as descriptive analysis, likert scale, financial analysis, and identification of problems encountered by LMPC. In the financial analysis, ratio analysis were used such as current ratio, net capital ratio, net worth ratio, debt-equity ratio, return on assets, and gross ratio to determine the liquidity, solvency, profitability and efficiency of the cooperative. Results of the financial analysis revealed that in the short-run, LMPC had not been that liquid although it had the capacity to pay its obligations as it went due. Meanwhile, in the long-run, it had been financially healthy and not at risk as its assets had been greater than that of its liabilities which was proved by its net capital ratio. The result of the ratio also implied that the cooperative was solvent. However, it goes to show that, through the years, LMPC’s net worth had been low on members’ equity and basing from its net worth ratio, the cooperative was insolvent. Furthermore, the result of the debt-equity ratio implied that the cooperative had been aggressive in financing its growth with debt. Nonetheless, it was revealed that of the invested capital by LMPC, a corresponding P0.58 of income was earned for every P1 invested on its assets. Furthermore, the cooperative was seen to be generating high gross income returns above its total cost, thus, LMPC had been efficient throughout the years. Overall, despite the cooperative’s poor performance on its current ratio, net worth ratio, and debt-equity ratio, the results indicated that LMPC was fully capable of extending quality and better services to its members and to the community.

Language

English

Location

UPLB College of Economics and Management (CEM)

Document Type

Thesis

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