| Abstract: | The main purpose of this research is, to study financial performance (liquidity analysis of current ratio, leverage ratio –Total Debit to Account Receivable and Total Asset to Debit ration, and Capital to Asset ratio against PEARLs the standard ratio and percentage of World Council of Credit Unions of selected six Saving and Credit Cooperative Societies in Bole Sub City. Six cooperative Societies are selected based on availability three years audited financial reports. The employed methodology in this research is secondary quantitative data source and explanatory way of analyzed ration and percentage. Financial analysis tools, such as liquidity ratios ,leverage ratio, profitability ratio trend analysis of balance sheet and income statement. The study results indicated that cooperative Societies except one cooperative Ethiopian Airlines Employees, in others inefficiencies were noted regarding capital adequacy, leverage ratio, current asset ratio and working capital lower than the average ratio standard proposed to World Council of Credit Union. The study considered six years’ from year 2007 to 2012 in to two categories(from the years 2007 to 2009 of G.C under group one and from years 2010 to 2012 G.C under two group) audited reports. The ratio and percentages performed by these selected five out of six SACCOs were below PEALS proposed by World Council of Credit Union. The profitability of the cooperatives societies also were not stable from year to year. All these issues need the attention of all stake holders specially as goal owner Federal Cooperative Agency and structurally related offices to improve the cooperative Societies performance and sustainability to give better benefit to their members as per designed objective. |
