Assessment of Solvency and Financial Stability of Agricultural Consumer Cooperatives

DOI

10.2991/assehr.k.200113.069How to use a DOI?

Keywords

agricultural consumer cooperation, solvency assessment, financial condition, equity capital, balance liquidity, profitability

Abstract

Agricultural consumer cooperatives are non-profit organizations and act as socially-oriented business entities. They are formed to solve not only economic, but also social issues in rural areas. Domestic and foreign experience in the study of cooperatives has shown their ability to increase labor productivity, to improve financial condition, to update and to modernize the material and technical base of agricultural sector. Therefore, much attention is currently given to the successful operation of cooperatives. This paper is based on the review of the works of domestic and foreign scientists using a systematic approach to the issue, with economic and statistical, balance, abstract-logical research methods. The main part of the materials presented in this article is the assessment of solvency and financial stability of agricultural consumer cooperatives in the region. Data of the Department of AIC of the Kurgan Region became the basis for calculations for the studied business entities. Agricultural consumer cooperatives of the Kurgan Region were the objects of study. This paper considers the structure of the property of cooperatives and sources of their financing; identifies the features of the formation of their financial resources, as well as problems that negatively affect these parameters. Assessment revealed that the solvency of these business entities is at a high level, but the values of liquidity ratios significantly exceed recommended ones what indicates insufficiently rational use of resources. Unstable financial results of studied cooperatives led to the fact that own working capital for almost the entire period (2012-2018) was negative; this fact negatively affected a number of parameters that characterized the financial stability of entities. To strengthen their financial position, agricultural consumer cooperatives should increase their own capital expanding scope and activities what will solve not only economic, but also social issues and problems in rural areas.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tatyana Medvedeva
PY  - 2020
DA  - 2020/01/16
TI  - Assessment of Solvency and Financial Stability of Agricultural Consumer Cooperatives
BT  - Proceedings of the Ecological-Socio-Economic Systems: Models of Competition and Cooperation (ESES 2019)
PB  - Atlantis Press
SP  - 331
EP  - 335
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200113.069
DO  - 10.2991/assehr.k.200113.069
ID  - Medvedeva2020
ER  -