Global Journal of Commerce & Management Perspective
Open Access

Abstract

Financial Management and Ratio Analysis for Agricultural Cooperatives

Omid Sharifi

As from the second half of the 19th century, cooperatives began to play an important role in the social and economic development of all countries and they currently maintain these duties of theirs. As agricultural businesses today are becoming more complex, management needs to consider how its financial ratios play an important part in the health of its business. Financial analysis is an activity that includes the association between various accounts in financial statements as well as their measurement and interpretation.Differences between IOFs and cooperatives mean that some standard financial analyses do not relate well with cooperatives. This is especially relevant for profit-oriented ratios. This publication provides a supplement to standard analysis with an eye toward cooperatives. The aim of this study is to describe some common ratios used in cooperative financial analysis. Ratios will be related to data during the last 4 years from the INDIAN FARMERS FERTILISER COOPERATIVE LIMITED (IFFCO).