CHAPTER 1

INTRODUCTION

1.1

Background

Co-operatives is an autonomous association of persons; voluntarily united to met their

common economic, social and cultural aspirations and needs through a jointly owned and
democratically controlled enterprise (ICA, 2012). In indonesia itself co-operatives posseses
main fuction as soko guru perekonomian indonesia that means co-operative is corner stone
of Indonesian economy. Co-operatives takes the responsibility to build indonesian economics
by carrying micro sektor development. According to Indonesian constitution UndangUndang Republik Indonesia Nomor 25 tahun 1992, in pasal 5 (chapter 5) co-operatives
must implementing 5 grounded principle such as voluntarily, democratic, equally, feed back,
and indepence. Those principle conform the national 1945 constitution, which is common
economic practice on the basis of familyhood.
Co-operatives is business institution that own and run by its member, with this unique
structur co-operative face the chalange to survive in business activity. from the record of
Dinas KUMKM Jabar there is a lot of co-operatives that out from business activity, the
major reason from this condition is financial problem. A lot co-operatives failed to maintain
their financial performance, some of them failed to fill the capital needs to run the the
business, and some of them failed to gain profit from the business. Besides, there is a lot of
coperatives can manage the financial performance to survive in business activity.
According to this condition, this study is aimed to learn about the actual financial condition
from coperative that can manage to survive until today, observe the financial healthy of cooperative financial performance judged by financial ratio analysis and productivity analysis.

1.2

Problem Identification

Co-operatives takes important fuction in Indonesian economics development, but todays the
awareness given to co-operatives is less than other business sector.
Overview Co-operative condition in West Java
Years

Total Asset (000)

Total Profit (000)

Total member

Total cooperative

2011

11,051,694,776

1,002,781,559

5,210,172

23,848

2012

36,522,887,185

1,539,632,704

5,280,700

24,916

2013

37,395,167,642

1,569,912,761

5,864,690

25,252

Source: department of co-operatives and small medium enterprises east java

Population of co-operatives in west java growing every years, significant growth of cooperatives Assets and profit in years 2012 showing us the increasing of co-operatives
business scale. According to this condition good financial performance of co-operatives is
required to maintain sustainable growth in co-operatives. The usual method to measure
financial performance is using financial ratio analysis, this study aimed to see co-operatives
financial healthy judging from analysis financial ratio and Productivity aspect from sample
co-operative in bandung, west java
1.3

Objective

The purpose of this study is to measure the performance of co-operatives financial condition
in Bandung, west java from years 2011 to 2013, judged from the result of the financial
statement Ratio analysis and Productivity aspect scoring from Peraturan Menteri Negara
Koperasi dan UKM Republik Indonesia Nomor: 06/per/M.KUKM/V/2006 tentang pedoman
penilaian koperasi berprestasi.
Following to the objective, this research performed to answer 2 research question:
1. How is actual condition of co-operatives financial healty in Bandung?
2. What is unique factor that determine co-operative from others business institution?
1.4

The Importance of Problem Solving

Knowing financial healthy from ratio analysis we can see actual financial performance of cooperatives, for each variable that afecting the result of data analysis we can indentivy which
variable are strong and which variable needs to be evaluated.
Compairing the result of ratio analysis from 4 types of co-operatives can give brief
explanation about actual conditon from each types of co-operatives.
1.5

Problem Limitation

According the sizes of research sample compairing to Co-operative populations in bandung,

the result from this research cannot to be use to representactual financial condition of cooperative populations. The result from this research aimed to give the actual financial
performance for sample itself.
This study will discuss about:

Financial performances of co-operatives base on financial report.

Most of co-operatives have more than one business units, this research using over all
financial report of co-operative.

The analysis of data from financial report is using financial ratio analysis such as:
Rentabilitas modal sendiri, Return on assets, Assets turnover, Net profit margin,
Current ratio, Debt ratio and Debt to equity ratio according to element of productivity
aspect scoring from Peraturan Menteri Negara Koperasi dan UKM Republik
Indonesia Nomor: 06/per/M.KUKM/V/2006 tentang pedoman penilaian koperasi
berprestasi.

The other data is taken from interview result base on interview question and
discussion.

The actual condition of research co-operatives sample .

This study will not discuss about:

Organizational and management condition about co-operatives sample

Other quantitative data except financial report.

Financial condition of spesific business unit in co-operatives.

Other finantial ratio.

1.6

Other descriptif data that not included in interview question.

Other co-operatives outside from sample.

Writing Structure

Chapter 1 - Introduction
This chapter discusses the topics and issues discussed in the study author. Her background
includes, identification of the problem, the purpose of the study, the boundary problem and
the structure of the writing.
Chapter 2 - Literature Study
This chapter describes the theories and concepts used to describe and solve the problems that
have been described in the first chapter. The source of this literature is books, journals,
articles and the internet.
Chapter 3 - Research Methodology
This chapter describes how the authors carry out his research from the translation of the
problem, literature study, data collection, data analysis and conclusions derived from the
research.
Chapter 4 - Data Collection Analysis
This chapter explains how to process and analyze the author's use of the data that has been
described in the literature of learning literature. This chapter also describes the solution of the
existing problems in the company.
Chapter 5 - Conclusion and Recommendation
This chapter describes the conclusions of the research conducted by the authors based on the
data analysis described in the previous chapter to solve the existing problems in the company
and meet the objectives of the study.

CHAPTER 2
LITERATURE REVIEW

2.1.

Co-operative definition

Considering to Indonesian 1992 constitution clause 25 Undang-undang nomor 25 tahun

1992, co-operative is a business entity consisting of persons or legal entities, running above
co-operative gound principle base on value of familyhood.
2.2.

Co-operatives History and Rochdale theory

Robert Owen has been called the 'father of English Socialism'. He was the founder of the Cooperative movement and believed in worker control although he was a high capitalist himself.
He was the product of self-help and a very practical man who concentrated on the 'means to
the end'. He believed that if the working man ever was to achieve equality, then the man must
change first - in attitude. Also, the working man had to know of, believe in and be equipped
to fight for the cause, according to Owen. This is very much the self-help ethic. Owen
became convinced that the advancement of humankind could be furthered by the
improvement of every individual's personal environment. He reasoned that since character
was moulded by circumstances, then improved circumstances would lead to goodness. The
environment at New Lanark, where he tried out his ideas, reflected this philosophy.
A London Co-operative Society had been started in 1824 with rooms in Burton Street, Burton
Crescent, where discussions were held. Later it transferred to Chancery Lane where John
Stuart Mill, Charles Austen and others had hand-to-hand fights with the Owenites. The Cooperative Magazine was started in January 1826 and gave accounts of the New Harmony
community. It was published during the next three years as a sixpenny monthly. In 1830 it
was replaced by the British Co-operator, the Co-operative Miscellany and other journals that
expounded Owen's theories.
Also in 1826 the London Co-operative Society was formed, with William Lovett as
storekeeper. Similar societies were formed elsewhere, and the British Association for
Promoting Co-operative Knowledge was founded. All failed within three to four years
because funds had no legal protection although much of this happened when Owen was in

New Harmony. After 1829 Owen took over the development of Co-operatives, and pursued
three lines of development:

education

storekeeping

production - the heart of Owenism.

The idea failed in the short-term, but was better organised after 1844. Many societies were
started and Owen began to spread his ideas through lectures and by promoting various
associations: he gave Sunday lectures at the Mechanics' Institute in Southampton Buildings
until people objected. He then moved to the Institute of the Industrious Classes, and to
Burton Street. In 1832 he started the Labour Bazaar. He believed that the maldistribution of
wealth was the result of expensive and unnecessary middle-men who were barriers between
producers and consumers. He advocated 'labour exchanges' and 'labour bazaars' to eliminate
middle-men. Owen preached two types of co-operation:

co-operative exchange

co-operative production

Since 14 April 1832 Owen had published a penny paper called The Crisis; in June he
announced the formation of an association to promote the exchange of all commodities upon
the only equitable principle of giving equal values of labour. To carry out this, an
Equitable Labour Exchange was opened on 3 September 1832 at a building called the
Bazaar, in Gray's Inn Road. It had belonged to a man called Bromley who had pressed Owen
to use it for a new society. Owen had thought it suitable for his experiment, which had
already been partly set going elsewhere. Any goods might be deposited in it; labour notes,
which had been elaborately contrived to avoid forgery, were given in exchange, and the
goods deposited might be bought in the same currency. The system was extremely crude and
scarcely intelligible. There was, however, a rush to the exchange. A large amount of deposits
was made and the example was imitated, especially in Birmingham.
Difficulties soon arose. Bromley made exorbitant claims for rent though Owen thought that
he had offered his premises free of charge. It was decided to move the exchange to
Blackfriars. In January 1833 Bromley forcible entered the premises and Owen paid large
sums to settle the matter. Bromley tried to appropriate the scheme himself, but soon failed.
The exchange was moved to Charlotte Street, Fitzroy Square, where Owen, helped by his son
Robert Dale Owen, continued to lecture for some time, and a new constitution was framed. It

only survived for a short time; Owen made up a deficiency of 2,500 for which he held
himself to be morally, though he was not legally, responsible.
Owen's activity continued for several years, and had a great effect in stimulating the cooperative movement in the country, though exciting comparatively little public interest. He
took part in the seven co-operative congresses which met between 1830 and 1834; he also
took part in the succeeding fourteen socialist congresses (1835-1846).

The Rochdale Pioneers

On 24 October 1844, the Rochdale Society of Equitable Pioneers was registered under the
Friendly Societies Act. It was set up by seven flannel weavers who knew about poverty,
unemployment, goods on credit, truck and poor quality and/or adulterated food. Early in 1844
they rented the ground floor of a warehouse in Toad (t'owd) Lane for three years at 10 p.a.
They opened the store on 21 December 1844 and it grew steadily into the Rochdale Equitable
Co-operative Society Ltd. By 1851 about 13 co-ops existed, with a membership of 15,000
and in 1863 the English Co-operative Wholesale Society was set up.
The Rochdale Principles according to the 1995 ICA revision can be summarised as follows.

Voluntary and open membership

The first of the Rochdale Principles states that co-operative societies must have an open and
voluntary membership. According to the ICA's Statement on the Co-operative Identity, "Cooperatives are voluntary organisations, open to all persons able to use their services and
willing to accept the responsibilities of membership, without gender, social, racial, political
or religious discrimination."

Anti-discrimination

To discriminate socially is to make a distinction between people on the basis of class or

category. Examples of social discrimination include racial, religious, sexual, sexual
orientation, disability, and ethnic discrimination. To fulfil the first Rochdale Principle, a Cooperative society should not prevent anyone willing to participate from doing so on any of
these grounds. However, this does not prohibit the co-operative from setting reasonable and

relevant ground rules for membership, such as residing in a specific geographic area or
paying a membership fee to join, so long as all persons meeting such criteria are able to
participate if they so choose.

Motivations and rewards

Given the voluntary nature of co-operatives, members need reasons to participate. Each
person's motivations will be unique and will vary from one co-operative to another, but they
will often be a combination of the following:
Financial Some co-operatives are able to provide members with financial benefits.

i.

Quality of life Serving the community through a co-operative because doing service
makes one's own life better is perhaps the most significant motivation for
volunteering. Included here would be the benefits people get from being with other
people, staying active, and above all having a sense of the value of ourselves in
society that may not be as clear in other areas of life.
Giving back Many people have in some way benefited from the work of a co-

ii.

operative and volunteer to give back.

iii.

Altruism Some volunteer for the benefit of others.

iv.

A sense of duty Some see participation in community as a responsibility that comes

with citizenship. In this case, they may not describe themselves as volunteers.
Career experience Volunteering offers experiences that can add to career prospects

v.

Democratic member control

The second of the Rochdale Principles states that co-operative societies must have democratic
member control. According to the ICA's Statement on the Co-operative Identity, Cooperatives are democratic organizations controlled by their members, who actively participate
in setting their policies and making decisions. Men and women serving as elected
representatives are accountable to the membership. In primary co-operatives members have
equal voting rights (one member, one vote) and co-operatives at other levels are also
organised in a democratic manner.

Member economic participation

Member economic participation is one of the defining features of co-operative societies, and
constitutes the third Rochdale Principle in the ICA's Statement on the Co-operative Identity.
According to the ICA, co-operatives are enterprises in which Members contribute equitably
to, and democratically control, the capital of their co-operative. At least part of that capital is
usually the common property of the co-operative. Members usually receive limited
compensation, if any, on capital subscribed as a condition of membership. Members allocate
surpluses for any or all of the following purposes: developing their co-operative, possibly by
setting up reserves, part of which at least would be indivisible; benefiting members in
proportion to their transactions with the co-operative; and supporting other activities
approved by the membership. This principle, in turn, can be broken down into a number of
constituent parts.

Democratic control

The first part of this principle states that Members contribute equitably to, and
democratically control, the capital of their co-operative. At least part of that capital is usually
the common property of the co-operative. This enshrines democratic control over the cooperative, and how its capital is used.

Limitations on member compensation and appropriate use of surpluses

The second part of the principle deals with how members are compensated for funds invested
in a Co-operative, and how surpluses should be used. Unlike for-profit corporations, cooperatives are a form of social enterprise. Given this, there are at least three purposes for
which surplus funds can be used, or distributed, by a Co-operative.
i.

Members usually receive limited compensation, if any, on capital subscribed as a

condition of membership.

ii.

Developing their co-operative, possibly by setting up reserves, part of which at least

would be indivisible; in other words, the surplus can be reinvested in the cooperative.

iii.

Benefiting members in proportion to their transactions with the co-operative; for

example, a Consumers' Co-operative may decide to pay dividends based on purchases
(or a 'divvi').
Supporting other activities approved by the membership.

iv.

Autonomy and independence

The fourth of the Rochdale Principles states that co-operative societies must be autonomous
and independent. According to the ICA's Statement on the Co-operative Identity, Cooperatives are autonomous, self-help organizations controlled by their members. If they enter
into agreements with other organizations, including governments, or raise capital from
external sources, they do so on terms that ensure democratic control by their members and
maintain their co-operative autonomy.

Education, training, and information

The fifth of the Rochdale Principles states that co-operative societies must provide education
and training to their members and the public. According to the ICA's Statement on the Cooperative Identity, Co-operatives provide education and training for their members, elected
representatives, managers and employees so they can contribute effectively to the
development of their co-operatives. They inform the general public particularly young
people and opinion leaders about the nature and benefits of co-operation.

Cooperation among co-operatives

The sixth of the Rochdale Principles states that co-operatives cooperate with each other.
According to the ICA's Statement on the Co-operative Identity, Co-operatives serve their
members most effectively and strengthen the co-operative movement by working together
through local, national, regional and international structures.

Concern for community

The seventh of the Rochdale Principles states that co-operative societies must have concern
for their communities. According to the ICA's Statement on the Co-operative Identity, Cooperatives work for the sustainable development of their communities through policies
approved by their members.
Souece: http://www.historyhome.co.uk/peel/economic/owencoop.html
http://en.wikipedia.org/wiki/Rochdale_Principles

2.3

Democracy economics

According to the first paragraph in clause 33 Indonesian 1945 constitution pasal 33 UUD
1945 element of democracy economics summarized in to 3 major principle:

Community participation to contribute in national production development takes

important position in democracy economics. It is important to utilize all potention of
national Human resource and distribute the outcomes from national production for all
element of society. This concept also implemented National 1945 constitution clause
27 pasal 27 UUD 1945, that every citizen have the right to get job and good quality
of life.

Toassurethe National production out comes distributed evenly to all social element
including homeless people and neglected child, goverment has to conduct social
assurance for them in entire region of Indonesia.

All economic activities areunder citizen control. To carry out democratic economy
system every element of society has to get part in natinal production activity. although
the capital resource comes from foreign invesment, production activities are controled
by surrounding citizen.

2.4

Co-operative movement in Indonesia

According to the data of the department of co-operatives and small medium enterprises east
java, there were 25.252 co-operatives with 5.864.690 members and share assets contribution
of 37.395.167 million Indonesian rupiah (IDR). Credit co-operatives are the most active in
Indonesia, just as featured in most of other Asian countries, producers, insurance,
institutional, housing, workers, distribution, market traders, woman, youth, banking and
health co-operatives also take part in Indonesia co-operatives movement.

Indonesia co-operatives movement started in the end of 19th century. The co-operative idea
was introduced by Mr. R. Ana Wiraatmadja in Purwokerto, central java. The first cooperative was a credit co-operative, which was similar to Raiffeisen credit co-operative
model. It was founded by the vice regent of Purwokerto to help citizen to escape from the
trap of money lenders.
A genuine peoples co-operative movement started early in the 20th century, with the
establishment of housing co-operatives. The movement expanded and textile traders
established their co-operatives.
After the independence of Indonesia, co-operative held their first congress, the participants
declared to form the central organization of the Indonesian peoples co-operative (SOKRI).
SOKRI was the first national organization of Indonesian co-operatives, and later change its
name to DEKOPIN (Indonesian co-operatives council). It was the time co-operatives growing
and contribute in Indonesias economy, but today co-operatives face some problem.
The problem of Indonesian co-operatives from the Government point of view, the biggest
problem that the co-operatives, especially small co-operatives, are facing now is the
vulnerability of financial structure. Stability of membership is strongly linked to this problem.
Both the stable management system and membership are required to stabilize the financial
structure of co-operatives. (ICA, 2012)

2.5

2.6

Co-operative values

Voluntary and open membership

Democratic member control

Economic participation by members

Autonomy and independence

Education, training and information

Cooperation among co-operatives

Concern for community

Co-operative types according to indonesian constitution

2.7

Productionco-operative

Consumtionco-operative

Service cooperation

Creditcooperation

Financial Statement

A financial statement (or financial report) is a formal record of the financial activities of a
business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to
understand. They typically include basic financial statements, accompanied by a management
discussion and analysis
2.7.1

A balance sheet, also referred to as a statement of financial position, reports on

a company's assets, liabilities, andownershipequity at a givenpointintime.

2.7.2

An income statement, also known as a statement of comprehensive

income, statement of revenue & expense, profit and loss report, reports on a
company's income, expenses, and profits over a period of time. A profit and
loss statement provides information on the operation of the enterprise. These
include sales and the various expenses incurred during the stated period.

2.7.2

A statement of cashflows reports on a company's cash flow activities,

particularly its operating, investing and financing activities.

2.8

Purpose of financial statements

Financial Statements represent a formal record of the financial activities of an entity. These
are written reports that quantify the financial strength, performance and liquidity of a
company. Financial Statements reflect the financial effects of business transactions and
events on the entity. The four main types of financial statements are:

2.8.1

Statement of Financial Position

Statement of Financial Position, also known as the Balance Sheet, presents the
financial position of an entity at a given date. It is comprised of the following three
elements:

Assets: Something a business owns or controls (e.g. cash, inventory, plant and
machinery, etc)

Liabilities: Something a business owes to someone (e.g. creditors, bank loans,

etc)

Equity: What the business owes to its owners. This represents the amount of
capital that remains in the business after its assets are used to pay off its
outstanding liabilities. Equity therefore represents the difference between the
assets and liabilities.

2.8.2

IncomeStatement

Income statement, also known as the Profit and Loss Statement, reports the company's
financial performance in terms of net profit or loss over a specified period. Income
Statement is composed of the following two elements:

Income: What the business has earned over a period (e.g. sales revenue,
dividend income, etc)

Expense: The cost incurred by the business over a period (e.g. salaries and
wages, depreciation, rental charges, etc)

Net profit or loss is arrived by deducting expenses from income.

2.8.3

Cash Flow Statement

Cash Flow Statement, presents the movement in cash and bank balances over a
period. The movement in cash flows is classified into the following segments:

Operating Activities: Represents the cash flow from primary activities of a

business.

Investing Activities: Represents cash flow from the purchase and sale of assets
other than inventories (e.g. purchase of a factory plant)

Financing Activities: Represents cash flow generated or spent on raising and

repaying share capital and debt together with the payments of interest and
dividends.

2.8.4

Statement of Changesin Equity

Statement of Changes in Equity, also known as the Statement of Retained Earnings,

details the movement in owners' equity over a period. The movement in owners'
equity is derived from the following components:

2.9

Net Profit or loss during the period as reported in the income statement

Share capital issued or repaid during the period

Dividend payments

Gains or losses recognized directly in equity (e.g. revaluation surpluses)

Effects of a change in accounting policy or correction of accounting error

Elements of Financial Statements

2.9.1

Assets

Asset is a resource controlled by the entity as a result of past events and from which
future economic benefits are expected to flow to the entity (IASB Framework).
Assets may be classified into Current and Non-Current. The distinction is made on the
basis of time period in which the economic benefits from the asset will flow to the
entity.

Current Assets: are ones that an entity expects to use within one-year time
from the reporting date.

Non Current Assets: are those whose benefits are expected to last more than
one year from the reporting date.

2.9.2

Liabilities

liability is a present obligation of the enterprise arising from past events, the
settlement of which is expected to result in an outflow from the enterprise of
resources embodying economic benefits (IASB Framework).
Liabilities may be classified into Current and Non-Current. The distinction is made on
the basis of time period within which the liability is expected to be settled by the
entity.

Current Liability: is one which the entity expects to pay off within one year
from the reporting date.

Non-Current Liability: is one which the entity expects to settle after one year
from the reporting date.

2.9.3

Equity

Equity is the residual interest in the assets of the entity after deducting all the
liabilities (IASB Framework).

2.9.4

Income

Income is increases in economic benefits during the accounting period in the form of
inflows or enhancements of assets or decreases of liabilities that result in increases in
equity, other than those relating to contributions from equity participants (IASB
Framework).
There are two types of income:

Sale Revenue: Income earned in the ordinary course of business activities of

the entity.

2.9.5

Gains: Income that does not arise from the core operations of the entity..

Expense

Expenses are the decreases in economic benefits during the accounting period in the
form of outflows or depletions of assets or incurrences of liabilities that result in
decreases in equity, other than those relating to distributions to equity participants
(IASB Framework).
Following is a list of common types of expenses recognized in the financial
statements:

Salaries and wages

Utility expenses

Cost of goods sold

Administration expenses

Finance costs

Depreciation

Impairment losses

CHAPTER 3
METHODOLOGY

3.1

Research Method

Research methodology is the process of collecting data and information needed for this
research and the process of analyzing the data that have been obtained with a particular
analysis. The data used by the author is a Balance statement and Income statement from years
2011-2013. According to the objective of this research, the author use quantitave analysis
with descriptive research.
Quantitave analysis technique that seeks to understand behavior by using complex
mathematical and statistical modeling, measurement and research. By assigning a numerical
value to variables, quantitative analysts try to replicate reality mathematically.

Descriptive research is used to describe characteristics of a population or phenomenon being

studied. It does not answer questions about how/when/why the characteristics occurred.
Rather it addresses the "what" question (What are the characteristics of the population or
situation being studied?) The characteristics used to describe the situation or population are
usually some kind of categorical scheme also known as descriptive categories.

3.2

Research Steps

Problem
Identification

Research
Objective

Literature Study

Data Collection

Data Analysis

Conclusion and
Recommendation

sumarize financial ratio analysis

describe financial helthy of cooperative samples

Resent development in cooperatives wealthwide

Economics theory of cooperatives
Resent regulation in Indonesian cooperatives

primary data
secondary data

ratio analysis
clasifying result to the groups
compairing each other groups
Factors determining financial performance
Unique factor of cooperatives compairing to others
institution

3.3

Research Steps Explanation

3.3.1 Problem Identification

Problem identification process is finding problem or issues that exist in company or
environment. In this research the environment is co-operatives population in bandung, the
problem related to co-operatives financial performance in bandung. This research aimed to
observe actual condition about co-operatives financial healthy in Bandung, west java.

3.3.2 Research Objective

The objective of this research is to answer the research question, measure the performance of
co-operatives financial condition in Bandung, west java from years 2011 to 2013 judged
from the result of the financial statement Ratio analysis and Productivity aspect scoring from
Peraturan

Menteri

Negara

Koperasi

dan

UKM

Republik

Indonesia

Nomor:

06/per/M.KUKM/V/2006 tentang pedoman penilaian koperasi berprestasi.

3.3.3 Literature Study

Literature to be used authors come from the internet, books, journals and other literature
following to this research objective literature study divided to 3 topics:

Resent development in co-operatives wealthwide

Economics theory of co-operatives

Resent regulation in Indonesian co-operatives

3.3.4 Data Collection

Primary data
There is two kind of primary data from this research, interview and data
permission:
I.

Interview
The authors doing interview to gather descriptive information from
company or environment. The interview comes from dinas KUMKM
jabar and co-operatives sample.

Company/ Institution

Objective

Dinas KUMKM provinsi jawa barat

To gather descriptive information

about co-operatives environment in
bandung, West Java.

KKP ITB

To gather information according to

KPSBU

research questionaire.

Koperasi kredit Pelangi kasih

Primkopau lanud Husein Sastranegara
Kokesma ITB
Koperasi Tani Mitra sukamaju

II.

Data permission
Data required for this is Financial report from last 3 years 2011 to 2013
including Income statement and Balance sheet, the author gathering the
data from 4 types of co-operatives: consumtion co-operative,
production

cooperatif,

services

co-operative

and

loan-saving

coopertive.

3.3.5 Data Analysis and Methodology

Clasifying data
Gathering and grouping required data from financial report, the data taken
from financial reportisthesourceelement of financialratioanalysis.

Methodology
I.

Financial Ratio analysis

Quantitative analysis of information contained in a companys financial
statements. Ratio analysis is based on line items in financial statements
like the balance sheet, income statement and cash flow statement; the
ratios of one item or a combination of items - to another item or
combination are then calculated. Ratio analysis is used to evaluate
various aspects of a companys operating and financial performance

such as its efficiency, liquidity, profitability and solvency. The trend

of these ratios over time is studied to check whether they are improving
or deteriorating. Ratios are also compared across different companies
in the same sector to see how they stack up, and to get an idea of
comparative valuations. Ratio analysis is a cornerstone of fundamental
analysis.
Categories of Financial Ratios:
i.

Liquidity Ratio
A class of financial metrics that is used to determine a
company's ability to pay off its short-terms debts obligations.
Generally, the higher the value of the ratio, the larger the
margin of safety that the company possesses to cover shortterm debts.

Current ratio: current ratio is a commonly used measure

of short-run solvency, the ability of the firm tomeet its
debt requirements as they come due. Current liabilities are
used as the denominator of the ratio becausethey are
considered to represent the most urgent debts, requiring
retirement within one year or one operatingcycle. The
available cash resources to satisfy these obligations must
come primarily from cash or the conversionto cash of
other current assets (Fraser & Ormiston, 2004).
Formula:

Quick Ratio: The quick or acid-test ratio is a more rigorous

test of short-run solvency than the currentratio because the
numerator eliminates inventory, considered the least
liquid current asset and the most likelysource of losses
(Fraser & Ormiston, 2004).
Formula:

ii.

Activity Ratio
Accounting ratios that measure a firm's ability to convert
different accounts within its balance sheets into cash or sales.
Activity ratios are used to measure the relative efficiency of a
firm based on its use of its assets, leverage or other such
balance sheet items. These ratios are important in determining
whether a company's management is doing a good enough job
of generating revenues, cash, etc. from its resources.
Activity Ratio elements :

Inventory turnover: A ratio showing how many times a

company's inventory is sold and replaced over a period. The
days in the period can then be divided by the inventory turnover
formula to calculate the days it takes to sell the inventory on
hand or "inventory turnover days."

Average collection period: The approximate amount of time

that it takes for a business to receive payments owed, in terms
of receivables, from its customers and clients.

Total assets turnover: The fixed asset turnover and total assets
turnover ratios are two approached to assessing managements
effectiveness in generating sales from investments in assets.
The fixed assets turnover considers only the firms investment
in property, plant, and equipment and is extremely important for
a capital-intensive firm. The total assets turnover measures the
efficiency of managing all of a firms assets(Fraser &
Ormiston, 2004)
Formula:

iii.

Leverage Ratio
Leverage ratio used to calculate the financial leverage of a
company to get an idea of the company's methods of financing
or to measure its ability to meet financial obligations. There are
several different ratios, but the main factors looked at include

debt, equity, assets and interest expenses.

Leverage Ratio element:

Debt ratio: The ratio of total debt to total assets measures the
percentage of funds provided by creditors (Brigham& Houston,
2009). It considers the proportion of all assets that are financed
with debt (Fraser & Ormiston, 2004).
Formula:

Times interest earned ratio: The times interest earned ratio

measures the extent to which operating income can
declinebefore the firm is unable to meet its annual interest
costs (Brigham & Houston, 2009).
Formula:

Debt to equity: The debt to equity ratio measures the

riskiness of the firms capital structure in terms of
therelationship between the funds supplied by creditors and
investors (Fraser & Ormiston, 2004).
Formula:

iv.

Profitability ratio
Profitability ratio are used to assess a business's ability to
generate earnings as compared to its expenses and other
relevant costs incurred during a specific period of time. For
most of these ratios, having a higher value relative to a
competitor's ratio or the same ratio from a previous period is
indicative that the company is doing well.
Element of Profitability ratio:

Operating profit margin and net profit margin: Operating

profit margin and net profit margin represent thefirms

ability to translate sales in peso into profits at different stages

of measurement. The operating profit margin,a measure of
overall operating efficiency, incorporates all of the
expenses associated with ordinary businessactivities. The net
profit margin measures profitability after consideration of all
revenue and expense, includinginterest, taxes, and nonoperating items (Fraser & Ormiston, 2004).
Formula:

Operating profit margin =

Net profit margin =

Return on total assets and return on equity: Return on total

assets and return on equity are two ratios that measure the
overall efficiency of the firm in managing its total investment
in assets and in generating return to shareholders. Return on
total assets indicates the amount of profit earned relative to the
level of investment intotal assets. Return on equity measures the
return to common shareholders (Fraser & Ormiston, 2004).
Formula:

Return on asset (ROA) =

Return on equity (ROE) =

II.

Productivity aspect analysis

According to indonesian regulacy Peraturan Menteri Negara
Koperasi dan UKM Republik Indonesia Nomor:
06/per/M.KUKM/V/2006 tentang pedoman penilaian koperasi
berprestasi.
there is a method to giving score for each variable ratio:

Variable ratio

Range

Score

Score proportion

Rentabilitas modal sendiri

Return on Assets (ROA)

Assets turnover

Net profit margin

Current ratio

=>0,21

100

0,15 - < 0,21

75

0,09 - <0,15

50

0,03 - <0,09

25

<0,03

=>0,1

100

0,07 - <0,1

75

0,03 - <0,07

50

0,01 - <0,03

25

<0,01

>3,5

100

2,5 - <3,5

75

1,5 - <2,5

50

1 - <1,5

25

<1

>0,15

100

0,1 - <0,15

75

0,05 - <0,1

50

0,01 - <0,05

25

,0,01

2 2,5

100

1,75 - <2

75

100

100

100

100

100

or
>2,5 2,75
1,5 - <1,75

50

or
>2,75 - 3
1,25 - <1,5

25

or
>3 3,25

Debt ratio

<1,25 or >3,25

<40

100

100

>40 - 50

75

>50 - 60

50

>60 - 80

25

>80

=<70

100

>70 -100

75

>100 - 150

50

>150 - 200

25

>200

Debt to equity ratio

100

Total Score

III.

Sumarrizing and comparating analysis result

i.

Factors determining financial performance

ii.

Unique factors of
institutions

700

Result Implementation

3.3.6 Conclusion and Recommendation

co-operatives

compairing to

others

CHAPTER 4
DATA ANALYSIS
4.1 Financial data and ratio analysis
4.1.1 KKP ITB
KKP ITB located in ganesha street number 14 A, KKP ITB is workers cooperatives,
the members of KKP ITB is worker from several university as Bandung institute of
technology, Bandung manufactures polytechnic, and Bandung polytechnic. In years
2013 KKP ITB has 3026 members, 37 fix employee and 10 contract employe. KKP
ITB has 3 business unit:
Consumtive devition
In consumptive devition KKP ITB has retail store and food court
Services devition
In services devition KKP ITB has units travel and car rental
Credit devition
In credit devition KKP ITB give credit to its members with total amount 17,927,803
Indonesian rupiah (IDR).
4.1.1.1

Financial condition of KKP ITB

KKP ITB
SHU
Equity
Total Assets
Sales
Current Asset
Current liabilities
Total debt

2011

Years
2012

2013

407.847.854
510.322.147
575.431.582
5.335.194.641 6.782.981.277 7.736.385.185
11.184.459.704 19.443.560.977 23.557.245.546
7.449.797.429 9.747.994.161 12.259.427.398
7.449.797.429 18.128.027.541 21.245.210.985
9.938.425.708 6.228.206.150 7.237.500.219
5.849.256.064 12.660.579.701 15.820.860.362

Every financial account exept current liabilities has increased steadily from 2011 to

2013, according to the increased account variable the business scale of KKP ITB keep
growing from 2011 to 2013
4.1.1.2

Financial Ratio Analysis of KKP ITB

Year

Rentabilitas

ROA

ATO

2011

0,076

0,036 0,667 0,055

2012

0,075

0,026 0,501 0,052 2,911 0,651 1,866

2013

0,074

0,024

0,52

NPM

CR
2,52

DR

DER

0,523 1,096

0,047 2,935 0,671 2,045

ROA decreased significantly from years 2011 to 2012, the significant increased on
KKP ITBs assets not followed by increasing profit.

4.1.2 KPSBU Jabar

KPSBU Jabar located in Lembang, Bandung-West Java, KPSBU is production
cooperatives which the members is milk farmer around Lembang, Bandung. The role
of this cooperatives is to gather the milk production from farmer then distribute it for
several market in Indonesia. In 2013 KPSBU has 6930 members of farmer and
produce 109500 kg milk per day.
4.1.2.1

Financial condition of KPSBU

KPSBU

2011

Years
2012

2013

SHU

1.321.113.793

1.514.114.844

1.628.850.684

Equity

17.346.101.555

19.734.469.460

20.289.867.963

Total Assets

43.409.401.609

50.610.677.304

53.037.301.195

Sales

238.768.146.606 257.423.671.295 268.452.670.367

Current Asset

28.269.506.596

35.087.849.768

37.317.207.643

Current liabilities

19.038.063.754

27.568.078.764

28.540.839.280

Total debt

26.063.300.050

30.876.207.840

32.747.433.230

every financial aspect from KPSBU growth steadily from years 2011 to 2013. There
is no significant change in account, KPSBU productivity growing constantly.

4.1.2.2

Financial ratio analysis of KPSBU

year

Rentabilitas

ROA

ATO

NPM

2011

0,076162

0,0304

5,5

DR

DER

0,006 1,485

0,6

1,503

2012

0,07672438 0,0299 5,086 0,006 1,273

0,61

1,565

2013

0,08027902 0,0307 5,062 0,006 1,308 0,617 1,614

4.2 Productivity aspect scoring

CR