Financial Ratio Analysis Template for Cooperatives

This template is designed to assist managers and board members

in calculating and interpretating standard financial ratios.
Up to five years of financial statement information can be
entered on the income statement and balance sheet worksheets.
The ratio worksheet calculates common financial ratios and provides
industry benchmarks. A "red light" "green light" analysis
illustrates which ratios are unacceptable (red light) or
exceeding standards (green light). Calculated ratios
close to industry standards do not trigger either a "red light"
or a "green light".
Other sheets on the template provides graphs
of the common ratios.
input cell color
Input information is entered in the green cells on the
income statement and balance sheet pages.
Calculation cells are protected. The template can be
modified by turning off the protection. Before modifying the
template you should save a master copy under a different file name.

Cooperative Name
Statement of Income and Expenses

Case Study Cooperative

2010
Sales
Grain
Farm Supply
Total Sales
Costs of Goods Sold Grain
Costs of Goods Sold Farm Supply
Gross Margin Grain
Gross Margin Farm Supply
Gross Margin on Grain and Farm Supply
Other Income
Storage and Handling
Feed milling
Custom Application
Petroleum Revenues
Finance Charge
Other Income #1 (feed truck)
Other Income #2 (misc)
Gain (loss) on sale of fixed assets
Total Other Income
Total Gross Income
Operating Expenses
Payroll and Benefits
Fixed Expenses
Depreciation and Amoritzation
Interest
Insurance
Property Taxes
Total Fixed Expense
Utilities
Truck
Repairs and Supplies
Advertising
Office Supplies
Rent
Bad Debt Provision
Telephone
Other Operating Expenses
Total Other Expense
Total Operating Expenses
Local Savings
Patronage Refunds Received
Other non-local income (expense)
Savings before Income Tax

$
$
$
$
$
$
$
$

2008

2007

2006 Average

$
$
$
$
$
$
$
$

5,881,151
3,345,770
9,226,921
5,604,171
2,956,050
276,980
389,720
666,700

$
$
$
$
$
$
$
$

3,302,963
2,946,158
6,249,121
2,925,217
2,616,553
377,746
329,605
707,351

$
$
$
$
$
$
$
$

4,689,774
3,028,085
7,717,859
4,183,877
2,697,462
505,897
330,623
836,520

$
$
$
$
$
$
$
$

73,886 $
$
182,641 $
28,686 $
24,051 $
1,038 $
2,867 $
$
313,169 $

56,888
33
187,928
31,687
21,315
1,065
1,215
5,170
305,301

$
$
$
$
$
$
$
$
$

108,413
7,310
215,338
40,667
20,588
12,670
922
220
406,128

$
$
$
$
$
$
$
$
$

86,554
45,911
157,839
39,685
23,274
12,362
6,290
(1,387)
370,528

$
$
$
$
$
$
$
$
$

86,554
45,911
157,839
39,685
23,274
12,362
6,290
(1,387)
371,915

1,245,221 $

972,001 $

1,113,479 $

1,207,048 $

2,089,774

444,199 $

431,200 $

404,860 $

409,602 $

409,602

$
$

156,948 $
512,382 $

177,105 $
499,665 $

177,140 $
469,767 $

177,070 $
502,189 $

177,070
502,189

$
$

29,999 $
699,329 $

31,353 $
708,123 $

32,990 $
679,897 $

29,564 $
708,823 $

29,564
708,823

(23,500) $

(26,000) $

(26,000) $

(30,000) $

(30,000)

1,143,528 $

1,139,323 $

1,084,757 $

1,118,425 $

1,118,425

$
$
$
$

101,693
47,769
10,233
159,695

$
$
$
$
$
$

5,156,395
3,664,765
8,821,160
4,686,341
3,202,767
470,054
461,998
932,052

2009

$
$
$
$

(167,322)
43,012
9,474
(114,836)

$
$
$
$

28,722
45,951
(127,243)
(52,570)

$
$
$
$

88,623
16,508
(49,985)
55,146

$
$
$
$

4,689,774 $ 4,744,011
3,028,085 $ 3,202,573
7,717,859 $ 7,946,584
4,000,000
2,000,000
689,774
1,028,085
1,717,859

971,349
16,508
(49,985)
937,872

Case Study Cooperative

Balance Sheet
Assets
Current Assets
Cash
Accounts Receivable
Allowance for Doubtful
Notes Receivable
Sales Contracts Recievable
Accrued Storage
Other Receivable
Grain Inventory
Farm Supply Inventory
Prepaid income taxes
Prepaid Expenses
Total Current Assets

$
37,610
$ 470,527
$ (23,500)
$
10,030
$ 351,879
$
42,756
$ 148,701
$ 1,255,418
$ 382,982
$
3,800
$
76,588
$ 2,756,791

Long-term Assets
Property Plant and Equipment at Cost
Accumulated Depreciation
Net Property Plant and Equipment

$ 3,427,920 $ 3,400,704 $ 3,373,115 $ 3,265,158 $ 31,590,419

$ 2,699,029 $ 2,542,081 $ 2,367,424 $ 2,192,564 $ 17,916,299
$ 728,891 $ 858,623 $ 1,005,691 $ 1,072,594 $ 13,674,120

Other Assets

Total Local Assets

$ 3,800,981 $ 2,139,543 $ 2,895,290 $ 2,555,108 $ 14,974,870

2010

315,299

$
$
$
$
$
$
$
$
$
$
$
$

2009

2008

2007

2006

135
430,237
(26,000)
29,344
21,992
18,635
21,608
97,753
341,789
3,800
24,512
963,805

$
3,214
$ 293,507
$ (26,000)
$
12,534
$ 532,527
$
56,947
$
43,643
$ 328,782
$ 301,624
$
2,800
$
39,659
$ 1,589,237

$
4,736
$ 258,789
$ (30,000)
$
8,578
$
46,296
$
57,757
$ 202,827
$ 257,389
$ 366,829
$
6,880
$ 104,498
$ 1,284,579

$
4,736
$
258,789
$
(30,000)
$
8,578
$
46,296
$
57,757
$
202,827
$
257,389
$
366,829
$
6,880
$
104,498
$ 1,284,579

317,115 $

300,362 $

197,935 $

Case Study Cooperative

Balance Sheet
Liabilities and Members Equity
Current Liabilities
Notes Payable
Current Portion of Long Term Note

Secured Operating Loan

Accounts Payable
Trade
Grain
Accrued Payables and Taxes
Patron Refunds Payable
Total Current Liabilities
Deferred Taxes and Liabilities
Long Term Debt, Excluding Current
Secured Note

16,171
Total Long Term Debt
Total Liabilities

Investments in Cooperatives

209,926

172,911 $

680,238 $

650,949 $ 12,833,530

Total Assets

$ 4,010,907 $ 2,312,454 $ 3,575,528 $ 3,206,057 $ 27,808,400

Members Equities
Common Stock
Allocated Patranage
Unallocated Reserve
Patronage dividends payable
Total Members Equity
Total Liability and Equity

2010

2009

2008

2007

$ 1,863,369 $
$
97,776 $

319,892 $
97,776 $

744,723 $
97,776 $

474,336 $
78,180 $

474,336
78,180

148,539 $

196,748 $

72,764 $

72,764

37,162 $
$
20,539 $

85,725 $
20,437 $
20,170 $

85,725
20,437
20,170

$ 2,242,202 $

583,502 $ 1,096,948 $

751,612 $

751,612

$
$

306,322 $
4,000 $

404,098 $
4,000 $

501,874 $
4,000 $

403,650 $
8,641 $

403,650
8,641

310,322 $

408,098 $

505,874 $

412,291 $

8,641

991,600 $ 1,602,822 $ 1,163,903 $

760,253

186,839 $

94,218 $

$ 2,552,524 $

$
$
$

17,295 $

68,800 $ 1,074,700 $ 1,102,400 $ 1,118,200

789,382 $ 233,713 $ 229,174 $ 209,815
600,201 $
12,441 $ 641,132 $ 693,702
$
20,437
$ 1,458,383 $ 1,320,854 $ 1,972,706 $ 2,042,154

2006

$ 1,118,200
$ 209,815
$ 693,702
$
20,437
$ 2,021,717

$ 4,010,907 $ 2,312,454 $ 3,575,528 $ 3,206,057 $ 2,781,970

RATIO ANALYSIS FOR:

Profitability Analysis
Local Savings
Gross Margin $
Gross Margin Trend YOY
Local Savings Margin
Local Savings to Local Assets (ROA)
Return on Local Equity (ROE)
EBITDA
EBITDA/(Int Exp + CMLTD)

Expense Ratios
Personnel Cost/Gross Margin
Fixed Expenses/Gross Margin
Other Expense /Gross Margin
Operating Expense to Sales
Bad Debt/Sales

Efficiency Ratios
Total Asset Turnover
Total Assets/Sales
Farm supply inventory turnover
Average Farm Supply Sales Outstanding
Accounts over 60 days
Fixed Assets/Total Assets

Liquidity Ratios
Working Capital
Current Ratio
Working Capital to Sales

Debt Ratios
Debt/Assets
Debt/Equity
Debt/Local Equity
Ownership Ratio ME/TA
Local Equity/Total Equity
Working capital

Case Study Cooperative

2010
$
$

2009

2008

2007

101,693 $
(167,322) $
28,722 $
88,623 $
971,349
932,052 $
666,700 $
707,351 $
836,520 $
1,717,859
39.80%
-5.75%
-15.44%
-51.30%
1.15%
-1.81%
0.46%
1.15%
12.59% > 1.5%
2.68%
-7.82%
0.99%
3.47%
6.49% > 8%
8.15%
-14.58%
2.22%
6.37%
-8.98% > 10%
829,025 $
561,934 $
594,337 $
734,405 $
1,617,131
1.36
0.94
1.05
1.27
2.79 >1
Neutral
Unfavorable
Unfavorable
Unfavorable
Favorable

35.67%
56.16%
0.00%
12.96%
0.64%
Unfavorable

44.36%
72.85%
0.00%
12.35%
0.78%
Unfavorable

36.36%
61.06%
0.00%
17.36%
0.88%
Unfavorable

33.93%
58.72%
0.00%
14.49%
0.99%
Unfavorable

2.20
45.47%
9.57
44.94

3.99
25.06%
9.79
45.01

1.75
57.22%
9.77
34.87

2.41
41.54%
8.25
29.91

18.17%
Unfavorable

37.13%
Neutral

28.13%
Unfavorable

33.46%
Favorable

2006 STANDARD

514,589 $
1.23
5.83%
Favorable

7.74%
21.28%
24.86%
36.36%
85.61%
514,589 $

CALCULATION
Local Savings
Sales-COGS
% Change in GM$
Local Savings/Sales
local savings/local assets
local savings/members equity
Net Earnings+Int Ext+Dep&Amort+Tax
EBITDA/(Int Exp + Current Maturities LT Debt)

19.60% < 35% for grain coops, 45% for Farm Supply
33.92% < 25-30
0.00% <25
14.49% < 10%
0.99% < .25%
Unfavorable

0.28 > 4 to 5
Sales/Total Assets
360.31% < 20%
8.25 > 7 to 10
29.91 < 30 to 45 days Accounts Rec./Daily Farm Supply Sales
< 20% over 60 days
49.17% < 33%
Favorable

380,303 $
492,289 $
532,967 $
532,967 $
500,000
1.65
1.45
1.71
1.71 > 1.5 Farm Supply, 2.0 Grain Coops
4.12%
7.88%
6.91%
6.91% > 7%
1.5% grain sales + 2.5% of Farm supply sales
Neutral
Unfavorable
Favorable
Favorable

17.65%
30.90%
35.55%
57.12%
86.91%
380,303 $

14.15%
25.64%
39.14%
55.17%
65.52%
492,289 $

12.86%
20.19%
29.64%
63.70%
68.12%
532,967 $

0.03% < 50%

0.43% < 50%
-0.08% <30% to 40%
7.27% > 50-60%
-534.78% > 80%
532,967

L.T. Debt/Total Assets (TD/TC)

L.T. Debt/Total Equity
L.T. Debt/Net Worth-Investment in Coops
Total Equity/Total Assets
1.5% grain sales + 2.5% of Farm supply sales

Working Capital
$600,000
$532,967

$514,589

$532,967
$500,000

$492,289

$500,000

$400,000

$380,303

$300,000

$200,000

$100,000

$2010

2009

2008

2007
Working Capital

2006

STANDARD

Expense Ratio
Personnel Cost/Gross Margin
Fixed Expenses/Gross Margin
Operating Expense to Sales
Bad Debt/Sales
Other Expense /Gross Margin

80.00%

70.00%

60.00%

50.00%
Percentages
40.00%

30.00%

20.00%

10.00%

0.00%
2010

2009

Ye ar

2008

2007

Profitability
Personnel Cost/Gross Margin
Fixed Expenses/Gross Margin
Other Expense /Gross Margin
Operating Expense to Sales
Bad Debt/Sales

75.00%
70.00%
65.00%
60.00%
55.00%
50.00%
45.00%
Percentages
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2010
-5.00%

2009

2008
Year

2007

Efficiency
Total Asset Turnover
Total Assets/Sales
Farm supply inventory turnover
Average Farm Supply Sales Outstanding
Fixed Assets/Total Assets

50.00
45.00
40.00
35.00
30.00
Percentages
25.00
20.00
15.00
10.00
5.00
0.00
2010

2009

2008
Year

2007

Inventories
0.428571