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Profitability Benchmarks: A Tool for Cooperative Educators

Volume

45

Issue

5

Abstract

Financial performance of local cooperatives is important to rural communities. This article summarizes the financial health of cooperatives tracked over a 10-year period. Cooperatives are ranked and categorized by profitability, and the differences between categories are discussed. The source of differences between the highest rated cooperatives and the lowest most often comes from efficient use of assets and control of costs rather than size of the business or access to less expensive financing. Lessons learned from the financial review can guide Extension educational programming providing an incentive to adult learners for improving cooperative performance and highlighting areas of emphasis.

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