ANALYSIS OF CAPITAL STRUCTURE AND OPERATIONAL PERFORMANCE OF COOPERATIVES: THE CASE OF FIRST COMMUNITY COOPERATIVE (FICCO) IN CAGAYAN DE ORO CITY

Abstract

This study analyzed the capital structure and operational performance of a Cooperative in Cagayan de Oro City. Cooperatives are considered as voluntary associations where members are encouraged to make regular savings, and then obtain credit for use in their diverse activities. Methodology: The study used a descriptive type of research design with a quantitative data analysis and approach. The source of data was the administrative and annual report of the Cooperative from the years 2009-2017 and other audited reports of the office. Results: Findings revealed that the number of members of the Cooperative from 2009 to 2017 had a continuous percentage increase from 2010 to 2017. The dividend rate for Cooperative members and investors from 2009 to 2017 illustrated that there were fluctuations in the yearly dividend rate but had a continuous decline from 2012 to 2016 and started to recover in 2017. The year 2014 got the highest liquidity ratio with 2.43 and the year 2010 had the lowest liquidity ratio with 2.18. In all periods, even their averages, the cooperative had a liquidity ratio of more than 2 greater than the standard showing that the cooperative can easily satisfy its current obligation with its current asset. Conclusion: The study concluded that the Cooperative was highly liquid. The members' equity in the Cooperative decreased in 2010 and increased in 2011 then continued an increase in succeeding years until 2017 and concluded that members' equity in the Cooperative had a positive average growth rate.