An Analysis of Financial Health of District Agricultural Cooperatives In Chiang Rai Province : by Using Financial Indicators

Abstract

     The purpose of this research was to analyze and compare financial health of District Agricultural Cooperatives in Chiang Rai Province. The data was collected from financial reports of 10 District Agricultural Cooperatives in Chiang Rai Province which were inspected and certified by Chiang Rai Office of Agricultural Cooperative Auditing. The analysis was done in four aspects namely, Liquidity Ratios, Assets Management Ratios, Debt Management Ratios, and Profitability Ratios. The analysis used financial indicators. The analysis distinguished financial health of district agricultural cooperatives in Chiang Rai Province. There were 7district agricultural cooperatives which was 70 % had financial health ranged from good to very good level. The rest were 3 district agricultural cooperatives had loss in operating results which was 30 % of all.

     The research results in general revealed that Mueang Phan Agricultural Cooperative Ltd. was the best practice cooperative. This resulted the financial health of the cooperative was at the best level with highest means in all areas. The second best practice was Mueang Chiang Rai Agricultural Cooperative Ltd. but Chiang Saen Agricultural Cooperative Ltd. was with the lowest means in all areas. Liquidity Ratios of Mueang Thoeng Agricultural Cooperative Ltd. was the best Liquidity Ratios with the best Current Ratio and Quick Ratio. In individual areas found that: Assets Management Ratios, Mueang Chiang Rai Agricultural Cooperative Ltd. did the best Assets Management Ratios by having the highest Account Receivable Turnover Ratio and Inventory Turnover Ratio. Besides, Muang Chiang Rai Agricultural Cooperative Ltd. spent the shortest time for Day Sales Outstanding and Day Supply in Inventory. Debt Management Ratios, Mueang Phan Agricultural Cooperative Ltd. did the best Debt Management Ratios by having the lowest Debt Ratio and Debt to Equity Ratio. Besides, it had the highest Time Interest Earned Ratio. Profitability Ratios, Mueang Phan Agricultural Cooperative Ltd. did the best Profitability Ratios by having the highest Gross Margin Ratio, Operating Margin Ratio, and Net Profit Margin Ratio. Besides, it had a good Return on Common stock Equity.