FINANCIAL PERFORMANCE OF SPU MULTIPURPOSE COOPERATIVE : A TEST OF SUSTAINABILITY

Abstract

The study aimed to determine the financial performance of SPU Multipurpose Cooperative, Incorporated SPUMC based on the standard set by the Cooperative Development Authority. The case analysis approach was employed specifically the Financial Statement Analyses, Ratio Analysis and SWOT Analysis to determine the current financial status, capability and performance of the cooperative for the last ten operating periods: 2006-2015. The Cooperative Development Authority (CDA) Standards was used to determine compliance in terms of financial aspect, the CDA performance index was used to determine level of sustainability while the formula of Kinde (2012) was used to measure financial sustainability. Results show that SPUMC, keeps as a strategy the implementation of very conservative working capital management, remains to be capable of meeting the demands of the current times given its financial performance on the different financial indicators as prescribed by the CDA. Moreover, this study show that despite of the cooperative?s slow growth, having reached its maturity in its life cycle, its financial performance for the ten year period indicates that it has the capability to sustain its services as it is financially sustainable.