Abstract:
The primary goal of this study’s is Financial Statement analysis of selected Primary Agricultural
Multipurpose Cooperatives in Jimma Geneti Woreda, Horo Guduru Wollega Zone, Oromia
Regional State, Ethiopia for the years 2016 to 2020, the study took into consideration the
auditing reports for the previous five years.to achieve objective of the study the researcher was
used quantitative research approach. The data analyses were to examine the significance of
factors on the measurement of financial performance; the data were analyzed using trend
analysis comparison (comparative analysis), and common size ratio and ratio analysis. The
outcome of the Financial Statement analysis demonstrated that the PAMPC' financial condition
had two cooperatives are well but the other three were not been maintained in a satisfactory
manner. According to the study's findings, some of the selected PAMPC' ability to borrow money
and level of profitability are both below average. The PAMPC must sell more shares of stock
because their asset utilization is unsatisfactory. The PAMPC must lower administrative and
operating costs to increase efficiency and generate sufficient profit. The trend (comparative
analysis) revealed the overall Financial Statement analysis trends and the PAMPC' comparative
standing. The common size analysis confirmed that each PAMPC managed enormous amounts of
assets, with debt accounting for a bigger share of the assets than capital. Additionally, each
PAMPC conducts a significant volume of sales, with the cost of products sold accounting for the
majority of these sales and the profit margin for the remainder. Various ratio analyses also
produce results that vary depending on the nature of the ratios. In comparison to Abdi Boru and
Ifa Bate, cooperative PAMPC had a comparatively good financial performance, according to the
total financial performance measurement. To enhance the Financial Statement of the PAMPC,
the management of the PAMPC should significantly concentrate on the total asset turnover, debt
to total asset, return on equity, and net operating profit ratio.
