Financial stability of multi-purpose cooperatives in Angono, Rizal calendar year 2016 Marvin P. Pollisco, Jocelle Joi S. Ramirez, Salina S. Sinubangan

Thesis BSA University of Rizal System, Binangonan 2017

includes bibliographical references

This study aimed to determine the Financial Stability of Multi- Purpose Cooperatives in Angono, Rizal, Calendar Year 2016. The researchers used the descriptive method of research which is the most appropriate technique in determining the financial stability multi-purpose cooperatives of multi-purpose cooperatives in Angono, Rizal Calendar Year 2016.The four Multi-Purpose cooperatives served as the subject of the study. The subject's financial statements covering 3-Year period were used as the principal instrument in collecting data. The main aim of this study is to determine the stability through vertical and horizontal analysis and ratio analysis of the four multi-purpose cooperative such as Angono Credit and Development Cooperative, Aurora Subdivision Multi- Purpose Cooperative, St.Clement Parish Multi-Purpose Cooperative and Brgy. San Isidro Multi-Purpose Cooperatives and Water Works System to show annual growth rate and percentage share of accounts of Statements of Financial Position and Statement of Operation form 2013-2015. Based on the presentation, interpretation and analysis of data gathered, the researchers found out and conclude that: With the financial statement that gathered to the respondent, the financial statement of the Multi-Purpose Cooperative will compute ratio analysis, horizontal and vertical analysis. The Multi-Purpose Cooperatives have a stable assets and currently paying its maturing debts, but in terms of accounts receivable turnover, it shows that they don't have an effective way of managing their accounts receivable. It may indicate that the cooperatives' collection of accounts receivables is weak. As to debt management, the Multi-Purpose Cooperatives have a lower ratio which is favorable indicating less risk and more financially stable business. They can cover their obligations with assets and equity. As to Profitability, there are some cooperatives that their expenses are too high and it needs to budget and minimize it that results a decrease in net income and cannot operate effectively. Others are more efficient at converting sales into actual profit. They managed their assets effectively to produce greater amount of net income. Based on the summary of findings and conclusions, the following recommendations were made: The cooperatives should be stricter when it comes to their collection policy to avoid having greater amount of receivables that may end up to be doubtful and generate more income from its members. They should focus on income generating activity to support their capital structure and prevent it from extreme risk. Since loans and receivables is the main source of income of the cooperatives, they should set a fix amount so their members could borrow depending on their capabilities in paying. This matter should be discussed properly to the members so that the cooperative can avoid having large receivables. The financial manager should watch over the other officers on how they handle money to ensure the financial condition of the cooperative. It will also help the cooperative to prevent the officers from using cash for their personal needs. As for the other multi-purpose cooperatives, they should adopt a new system of control in monitoring their growing expenses to achieve growth in net surplus.