ABSTRACT
This work was designed to study the financial analysis of
Agricultural Cooperatives in Abia state. Specific objectives include among
others to analyze the financial structure of co-operative societies in the
study area. Both primary and secondary sources of data were used in the study.
Primary data was collected with the use of questionnaires from 69 respondents
who were randomly selected. Secondary data were collected from the balance
sheet of 20 cooperative divisions in the state as at 31st December 2001. In
analyzing the data collected, simple statistical tools where used. Financial
ratios including current ratio, Acid-test ratio and DebtEquity ratio were also
used. The result obtained from analysis revealed that there are 11 types of
cooperative societies in the study area and their sources of finance are
government grants, contribution from members' and loans from financial
institutions. Results obtained from current ratio and acid- test ratio reveal
that only one cooperative division which constitute 5% of the cooperative
division could meet with there current obligations, similarly the Debt-equity
ratio show that only one cooperative division (5%) is credit worthy. The other
95% cannot borrow from financial institutions. The implication of the finding
is that shareholders run the risk of loosing their equity and the lenders run
the risk of not recovering their loan. In such a situation based on the
finding, it was recommended that cooperative should depend more on internally
generated funds, government and financial institutions should study the
repayment capacity of the cooperatives with respect to their activities before
giving loans to them and cooperatives should seek financial management advice.
AHPARANTA, C (2021). Financial Analysis Of Agricultural Co-Operatives In Abia State. Mouau.afribary.org: Retrieved Dec 24, 2024, from https://repository.mouau.edu.ng/work/view/financial-analysis-of-agricultural-co-operatives-in-abia-state-7-2
CHINONYEREM, AHPARANTA. "Financial Analysis Of Agricultural Co-Operatives In Abia State" Mouau.afribary.org. Mouau.afribary.org, 11 Oct. 2021, https://repository.mouau.edu.ng/work/view/financial-analysis-of-agricultural-co-operatives-in-abia-state-7-2. Accessed 24 Dec. 2024.
CHINONYEREM, AHPARANTA. "Financial Analysis Of Agricultural Co-Operatives In Abia State". Mouau.afribary.org, Mouau.afribary.org, 11 Oct. 2021. Web. 24 Dec. 2024. < https://repository.mouau.edu.ng/work/view/financial-analysis-of-agricultural-co-operatives-in-abia-state-7-2 >.
CHINONYEREM, AHPARANTA. "Financial Analysis Of Agricultural Co-Operatives In Abia State" Mouau.afribary.org (2021). Accessed 24 Dec. 2024. https://repository.mouau.edu.ng/work/view/financial-analysis-of-agricultural-co-operatives-in-abia-state-7-2