Achieve Your Cooperative's Financial Goals with Actionable Insights
Unlock the potential of your cooperative by leveraging financial ratios as tools to make informed decisions. Our calculators are designed to help you understand key financial metrics, enabling you to improve liquidity, manage debt, enhance profitability, and ensure long-term sustainability.
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- Liquidity Indicator
Enhance Short-Term Stability
- Solvency Indicator
Ensure Long-Term Sustainability
- Debt Indicator
Optimize Debt Management
- Profitability Indicator
Maximize Profitability
Understand and improve your cooperative's ability to meet immediate financial obligations.
Current Ratio
The Current Ratio measures your ability to pay off short-term liabilities with short-term assets.
Your ratio is
A ratio greater than 1 generally indicates good financial health.
Quick Ratio
The Quick Ratio provides a stricter assessment by excluding inventory from current assets. It shows your ability to meet short-term obligations without relying on the sale of inventory.
Your ratio is
If it is much higher than 1, it would indicate the excess of monetary liquid assets exposed to inflation or the exchange rate if they were in foreign currency.
Assess your cooperative's capacity to meet long-term obligations and invest in future growth.
Solvency indicator
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
If our solvency ratio is equal to 1.5, there is nothing to worry about, since it is the ideal value for this ratio. If our solvency ratio is below 1.5, we could say that our business does not have the necessary solvency to face its short-term debts.
Gain insights into your debt levels to make informed financing and risk management decisions.
Total Debt Ratio
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
A ratio greater than 1 means your cooperative has more debt than equity, indicating higher financial leverage and risk. A lower ratio is generally favorable, suggesting a stronger equity position
Short-Term Debt Ratio
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
A high ratio indicates a significant portion of equity is used to finance short-term obligations, which may affect liquidity. A lower ratio suggests better short-term financial stability.
Long-Term Debt Ratio
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
A higher ratio signifies reliance on long-term debt financing, which can increase financial risk over time. Lower ratios are generally preferred for long-term sustainability.
Measure and enhance how effectively your cooperative is generating profits.
Return on Equity (ROE)
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
A higher ROE indicates efficient use of equity to generate profits. Values above industry averages are considered positive, reflecting strong financial performance.
Return on Assets (ROA)
Assess your ability to cover long-term debts and maintain financial stability.
Your ratio is
A higher ROA shows effective utilization of assets to produce profits. Values above industry standards suggest good operational efficiency.
Glossary of Financial Terms
Unlock deeper insights by exploring definitions of all the financial terms referenced in our calculators and explanations.
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.