This is up from six co-ops in 1995. Activity Where the first two types of ratios examined the capital structure and the cooperative's ability to meet its fixed obligations, the next two look at the operating performances. Activity ratios reveal how much revenue is generated by each dollar invested in the cooperatives assets. The higher the ratio the more efficient the assets are used. The first activity ratio, local asset turnover, is calculated by dividing total revenues by local assets.
Local assets are total assets less investments in other cooperatives.
This dramatic increase was caused by both higher record revenues and a higher proportion of assets held as investments in cooperatives. In 1995, investments in other cooperatives represented 6.75 percent of total assets. By 1996, that number stood at 7.45 percent. Compared to other commodity groups, dairy, cotton and poultryAivestock cooperatives average less assets, which helps explain their high turnover ratios. The second activity ratio, fixed asset turnover, looks at how efficiently the cooperative uses its fixed assets.