A

Assets: Resources owned by your cooperative that have economic value and can provide future benefits. Assets can be current or non-current.

Current Assets: Assets expected to be converted into cash or used up within one year. Examples include cash, accounts receivable, and inventory.

Non-Current Assets: Long-term assets not expected to be converted into cash within one year. Examples are property, plant, equipment, and long-term investments.

C

Calculators: Tools designed to compute financial ratios using your cooperative's financial data, aiding in analysis and decision-making.

Current Liabilities: Obligations your cooperative must pay within one year. These include accounts payable, short-term loans, and accrued expenses.

Current Ratio: A liquidity ratio calculated by dividing current assets by current liabilities. It measures your ability to pay short-term obligations.

D

Debt: Money borrowed by your cooperative that must be repaid, typically with interest. Debt can be short-term or long-term.

Debt Indicator: Ratios that help assess your cooperative's debt levels in relation to assets and equity, indicating financial leverage and risk.

Debt Ratios: Financial ratios that compare different aspects of debt to assets or equity, such as the total debt ratio, short-term debt ratio, and long-term debt ratio.

E

Equity: Also known as shareholders' equity or patrimony. It represents the residual interest in the assets after deducting liabilities. Essentially, it's what the owners own outright.

Expenses: The costs incurred by your cooperative during operations, such as salaries, rent, and utilities, which reduce net income.

F

Financial Analysis: The process of evaluating businesses, projects, or budgets to determine their performance and suitability, often using financial ratios.

Financial Health: An assessment of the overall stability and viability of your cooperative's finances, including liquidity, solvency, and profitability.

Financial Ratios: Numerical comparisons of various financial statement items used to evaluate aspects like liquidity, solvency, profitability, and debt levels.

Financial Statements: Official records that outline the financial activities and condition of your cooperative, including the balance sheet, income statement, and cash flow statement.

I

Inventory: Goods and materials held by your cooperative for sale or production. Inventory is considered a current asset.

Investments: Assets purchased with the expectation that they will generate income or appreciate in the future.

L

Liabilities: What your cooperative owes to others—debts and obligations. Liabilities can be current or non-current.

Liquidity: The ability of your cooperative to meet short-term financial obligations using assets that can be quickly converted into cash.

Long-Term Debt: Loans and financial obligations lasting over one year, such as mortgages and bonds payable.

Long-Term Debt Ratio: A solvency ratio calculated by dividing non-current liabilities by equity, indicating the proportion of long-term debt financing.

N

Net Income: Also known as profit or earnings. It's the amount of money left after all expenses and taxes have been deducted from total revenue.

Non-Current Liabilities: Obligations not due within the next year, including long-term loans, bonds payable, and pension liabilities.

P

Profitability: A measure of how effectively your cooperative generates profit from its operations.

Profitability Indicator: Ratios that assess your cooperative's ability to generate earnings relative to revenue, assets, equity, and other financial metrics.

Q

Quick Ratio: A stringent liquidity ratio calculated by subtracting inventory from current assets and then dividing by current liabilities. It measures the ability to meet short-term obligations without selling inventory.

R

Return on Assets (ROA): A profitability ratio calculated by dividing net income by total assets. It measures how effectively your cooperative uses its assets to generate profit.

Return on Equity (ROE): A profitability ratio calculated by dividing net income by equity. It assesses how efficiently your cooperative uses shareholders' equity to generate profit.

S

Short-Term Debt: Financial obligations due within one year, including short-term loans and portions of long-term debt due within the year.

Short-Term Debt Ratio: A liquidity ratio calculated by dividing current liabilities by equity, indicating the proportion of equity used to finance short-term obligations.

Solvency: The ability of your cooperative to meet long-term financial obligations and sustain operations over the long term.

Solvency Ratio: A solvency metric calculated by dividing total assets by total liabilities. It assesses long-term financial stability.

T

Total Assets: The sum of current and non-current assets owned by your cooperative.

Total Debt Ratio: A leverage ratio calculated by dividing total liabilities by equity. It shows the extent to which your cooperative is financed by debt compared to equity.

Total Liabilities: The sum of current and non-current liabilities owed by your cooperative.

U

Utilization: The extent to which your cooperative's resources are used efficiently to generate revenue and profit.

W

Working Capital: The difference between current assets and current liabilities. It represents short-term financial health and operational efficiency.