Exploring the Financial Performance of Multipurpose Cooperative

10.2478/bjlp-2023-0000047

Abstract

People come together in the form of corporate entities known as cooperatives in order to cater for their own needs in terms of goods and services. In order to provide a foundation for future policy suggestions, the purpose of this study was to evaluate the effectiveness of Isabela State University's Multipurpose Cooperative. This type of research is a descriptive/evaluative study. This approach was taken by the researcher in order to explain, understand, and evaluate the performance of the ISU Multi-Purpose Cooperative in a comprehensive analysis over the course of a certain amount of time. cost with just a constant amount of Gross revenue leading to decreased Net operational surplus as a result. Because the ratio is higher than the average rate, it's possible that the implications of the profitability analysis of ISU-MPC in the short run might be considered satisfactory. On the other hand, in the long run, it may have a negative impact on the future financial performance if there is no progress on the subsequent year of operations. The implication of the trendline may be favorable for the Cooperative, which means that the Cooperative has the capability to continue and survive in the long run without depending primarily on the contributions of its members to finance its operations. If this is the case, then the implication of the trendline is positive for the Cooperative. Due to the significant amount of debt that is used to finance the cooperative's operations, the cooperative's solvency rate is on the decline. Also, the Cooperative has a very low turn-over rate as a result of inefficiency in handling its receivables. This is significant evidence that the Cooperative may suffer from a high rate of delinquency in the long run.