Analysis of Cooperative Financial Performance in Ibadan Metropolis, Oyo State, Nigeria

Abstract

This study examined the financial performance of agricultural cooperative societies in Ibadan Metropolis, Oyo State; this as a way of ensuring impact on members and the communities of location. Primary data were collected from thirty (30) cooperatives through interview of principal officers using well structured questionnaire while secondary data were from the cooperatives annual reports. The analytical techniques used include descriptive statistics applied to financial aggregates and ratios and regression analysis. The financial aggregates analysed include current assets, current liabilities, cash and account receivable, and owners’ equity. The financial ratios were current ratio, acid test, equity to assets, debt to equity, debt to assets and current debt to equity. Cooperative’s structural and financial elements were hypothesized as determinants of cooperative financial performance. All variables except cooperative size had significant effect on financial performance. But years of operation, and number of loans beneficiaries only had negative effect on performance. The study concluded on appropriate measures needed to improve cooperative financial performance.