Financial Ratios for Philippine Cooperatives

1. P.I.S.O.
• Net
Institutional
Capital
• Adequacy
Provisioning
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O
• Non Earning
Assets to TA
• Member’s
Equity to TA
• Deposit
Liability to TA
• External
Borrowings
• Receivable to
TA
Operational Strength
S
Structure of Assets
• Profitability
Ratio
• Earning per
Share Ratio
• Profitability
Growth Rate
• Asset
Efficiency Rate
• Rate of
Interest on
Share Capital
I
Institutional Strength
Profitability Performance
P
• Volume of
Business to TA
• Solvency
• Liquidity
• Cost for
Volume of
Business
• Administrative
Efficiency
• Turn Over
Ratio

2. jobitonio
Rate of Interest on
Share Capital
Asset Efficiency
Rate
Profitability
Growth Rate
Earning per Share
Ratio
Profitability Ratio
Profitability Performance

3. Profitability Ratio:
Standard
30% and above
10% to below 25%
3
2
Below 5%
In case of break-even or
net loss
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4
5% to below 10%
Gross Revenue / Gross Margin
5
25% to below 30%
Net Operating Surplus
1
0

4. Earning per Share Ratio:
STANDARD
Net Surplus
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5
Zero or negative
Paid-up Capital
/ Par Value
Php 2.50 and above
Php 2.00 to below
Php 2.50
Php 1.50 to below
Php 2.00
Php 1.00 to below
Php 1.50
1
4
3
2

5. Asset Efficiency Rate
Net Surplus
Total Assets
20% and above
15% to below 20%
10% to below 15%
5% to below 10%
below 5%
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5
4
3
2
1

6. Rate of Interest on Share Capital
Amount Allocated for Interest
on Share Capital
Average Paid up
Share Capital
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Higher than the
inflation rate
Within the inflation
rate
2 points below the
inflation rate
3 points or more
below the inflation
rate
Net Loss
5
4
3
2
1

7. Institutional Strength
Net Institutional
Capital
Adequacy of
Provisioning (more
than 1 year)
Adequacy of
Provisioning (31
days to 1 year)
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8. Net Institutional Capital
Formula: (Reserves + Allowance for probable
losses on loan and or actual receivables)
(Problem receivables asset + past due
receivables under litigation+
restructured receivables)
10% and above
8% to below 10%
6% to below 8%
Total Asset
4% to below 6%
2% to below 4%
Below 2%
Zero or negative
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9. Adequacy of Provisioning (more
than 1 year)
Allowance for probable losses
on loans and account
receivables
Past due receivables one year
and above
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100% and above
90% to below 100%
70% to below 90%
50% to below 70%
30% to below 50%
10% to below 30%
Below 10%
Zero or negative

10. Adequacy of Provisioning (31 days to 1 year)
Allowance for probable losses on
receivables-allowance required for
past due
receivables one year
35% and above
and above
30% to below 35%
25% to below 30%
Total past due receivables
20% to below 15%
31 days to 1 year
15% to below 20%
10% to below 10%
Below 10% but not
zero or negative
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11. Percentage of NonEarning Asset to Total
Assets
Members' Equity to
Total Assets
Deposit Liabilities to
Total Assets
External Borrowings
Receivables to Total
Assets
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12. Percentage of Non-Earning Asset to
Total Assets
Non-Earning
Assets
Total Assets
10% and below
5
Above 10% to 20%
4
Above 20% to 30%
3
Above 30% to 40%
2
Above 40%
1
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13. Members' Equity to Total Assets
Paid-up Share
Capital+Deposits for Capital
Subscription
40% to below 50%
50% to below 60%
Total Assets
30% to below 40%
60% to below 70%
20% to below 30%
Below 20% or above
70%
Less than 20%
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14. Deposit Liabilities to Total Assets
30% to 40%
Above 40% to 50%
20% to below 40%
Above 50% to 60%
Below 20% to 10%
Above 60% to 70%
Below 10% to 5%
Above 70%
Below 5%
Total Deposit Liabilities
Total Assets
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15. External Borrowings
Total External Borrowings
Total Assets
No external
borrowings
1% to 20%
Above 20% to 30%
Above 30% to 40%
Above 40%
5
4
3
2
1
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16. Receivables to Total Assets
Loans and/or accounts
receivables
Total Assets
60% to 70%
55% to below 60%
50% to below 55%
45% to below 50%
40% to below 45%
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17. Volume of
Business to
Total Assets
Solvency
Liquidity
Operational Strength
(Staying Power)
Administrative
Efficiency
Account
Receivable
Turn-over
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Accounts
Receivables
Turn-Over:

18. Volume of Business to Total Assets
100% and above
75% to below 100%
50% to below 75%
25% to below 50%
5% to below 25%
Less than 5%
Total Volume of
Business
Total Assets
Credit Loans
released,
consumed/Produced
/Marketing, Sales,
Service, Service
Income
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19. Solvency
(Assets + Allowance for Probable Losses)-(Total
Liabilities-Deposit Liabilities)+
(Past Due receivables+ restructured
receivables+receivables under litigation)
Deposit Liabilities
Share Capital
110% and above
100% to below 110%
85% to below 100%
75% to below 85%
50% to below 75%
Less than 50%
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20. Liquidity
Liquid Assets - Short
term Payables
15% and to 30%
Below 15% to 10%
Above 30% to 50%
Below 10% to 5%
Above 50% to 60%
Below 5% to 1%
Above 60% to 80%
Above 80% or below
1%
Zero or negative
Total members' Deposit
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21. Cost for Volume of Business
Operating Cost - (members' benefit
expense+ social service expense)
Total Volume of
Business
25 cents and below
26 to 32 cents
33 to 39 cents
40 to 46 cents
47 cents and above
5
4
3
2
1
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22. Administrative Efficiency
Administrative Cost(members' benefit expense+
social service expense)
10% and above
5
Above 10% to below
15%
4
Average Total Assets
Above 15% to below
20%
3
Above 20% to below
25%
2
Above 25%
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1

23. Turn- Over Ratio(Note: Get the
Average, if both formula is
applicable)
Account Receivable Turn-over
Net Credit Sales
Average Accounts
Receivables
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4 times and more
3 to below 4
2 to below 3
Below 2
Zero or negative
5
4
3
2
1

24. Accounts Receivables Turn-Over
Total Loans releases
4 times and more
Average Loans
Receivables
3 to below 4
2 to below 3
Below 2
Zero or negative
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25. If multi-purpose cooperative add the
rating of accounts receivable turnover and loans receivable turnover
and divide by 2 to get the average.
For single type select whatever is
applicable to the coop.
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26. Summary of Financial Ratios
Profitability Performance
Institutional Strength
Structure of Assets
Operational Strength
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