Inancial Statement Analysis Of Selected Primary Agricultural Multipurpose Cooperatives In Jimma Geneti Woreda, Horo Guduru Wollega Zone, Oromia Regional State, Ethiopia

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.