A Study on the Financial Performance: The Case of Robi-Berga Farmers Cooperative Union, in West Shoa Zone, Oromia Regional State, Ethiopia

Abstract

Analysis of financial statements of Cooperative was necessary for member and non-members, because it helps and depicting the financial position and performance on the basis of past and present records of financial statements. Although, it helps to know the growth, profitability and financial soundness of a cooperative union. This study is conducted Study on Financial Performance of Robi-berga Farmers' Cooperative Union in West Shoa Zone, Oromia Regional State, Ethiopia. For this purpose the data requirements for the study were collected from secondary sources, by using a data sheet disclosed of five years (2009-2013 G.C) audited financial reports of Robi-berga farmers' cooperative union. To achieve the objectives of the study, the researcher was considered five years audited financial reports and bye-law of this cooperative union, and the methods of data analysis were; Ratio Analysis, Funds flow and Cash flows Analysis. The results of the study on financial performance indicated that: Liquidity position of Robi-berga farmers' cooperative union was not good. Then the leverage positions of Robi-berga farmers' cooperative unions were above the standard, so Robi-berga cooperative union has weaker financial position. The profitability ratio of Robi-berga farmers' cooperative union not good, because as the standard levels below the standard.