But local cooperatives were rescued by patronage refunds from regional cooperatives, which accounted for 59 percent of the net income for local co-ops. Total expenses increased about 13 percent, fueled by interest costs that jumped 44 percent. Increased investments in the Bank for Cooperatives and CoBank reflected borrowing to finance inventories. Investment in property, plant and equipment also increased, although at a lower 7-percent rate. Table 1 lists cooperative respondents by size, table 2 by type.
Most ratios used have both a financial and operational impact.
Performance ratios measure various levels of cooperative operations. No single financial indicator will provide enough information to judge a cooperative's financial health. Liquidity Ratios Figure 4 shows the current and quick ratios for all surveyed cooperatives. The current ratio was relatively constant for three years before it slid in 1995. Current assets increased 24 percent, but comparable liabilities increased 33 percent.