This document outlines various metrics for evaluating the profitability, institutional strength, asset structure, and operational strength of cooperatives. It provides metrics in the following areas: 1. Profitability is measured through ratios like profitability, earnings per share, profitability growth rate, and asset efficiency rate. Higher ratios indicate stronger profitability. 2. Institutional strength is evaluated based on the level of institutional capital, adequacy of provisions for probable losses on past due accounts, and capital participation levels. 3. Asset structure examines the allocation of assets between earning and non-earning assets, and participation of members' equity, deposits, and external borrowings. 4. Operational strength considers metrics like business volume

1. Profitability
Institutional
Strength
Structure of
Assets
Operational
Strength

4. a. Profitability Ratio
Measure the capacity of the cooperative to
generate surplus
Net Operating Surplus
--------------------------------------------------------------Gross Operating Revenue or Gross Margin
30% and above
5 points
25% to below 30%
10% to below 25%
5% to below 10%
below 5%
4 points
3 points
2 points
1 point

5. b. Earning per share
Measure the capacity of cooperative to provide
earnings to members' capital contribution
Net Surplus
----------------------------------------------------Members' Equity - Treasury Share
Php 2.50 and above
Php 2 to below 2.50
Php 1.50 to below 2.00
Php 1.00 to below 1.50
below Php 1 to Php 0.75
5 points
4 points
3 points
2 points
1 point

6. c. Profitability Growth Rate
Measure the growth rate of profitability
for the period
Earning/share end – Earning/share
beginning
-----------------------------------------------------Earning per share beginning
100% and above
75% to below 100%
50% to below 75%
30% to below 50%
10% but below 30%
5 points
4 points
3 points
2 point
1 point

7. d. Asset Efficiency Rate
Measure the efficient use of assets to
generate surplus
Net surplus
Total Assets
20% and above
15% to below 20%
10% to below 1%
5% to below 10%
below 5%
5 points
4 points
3 points
2 points
1 point

8. e. Rate of Interest on Share Capital (as
prescribed in the by-laws; or if not provided,
follow Rule 10 of IRR)
Measure the return on members' share capital
Amount of Interest on Share Capital
Average Paid up Share Capital
Higher than the inflation rate
within the inflation rate
2 pts below inflation rate
3 pts or more below inflation rate
5 points
4 points
2 points
1 point

9. f. Rate of Patronage
Measure the rate of returns on members'
patronage
30% & above of the NS
for distribution to members
25% to below 30 %
15% to below 25%
10% to below 15 %
5% to below 10%
5 points
4 points
3 points
2 points
1 point
Note: if the rate of patronage refund is more than twice
the rate of interest on capital, the rating is zero

12. a. Net Institutional Capital
Measure the level of institutional capital after subtracting
the allowance for probable losses
(Reserves + APLL and/or A/R) – (Problem Assets + Past Due
Receivables + Receivables Under Litigations +
Restructured Receivables)
----------------------------------------------------------------------------------Total Assets
10% and above
8% to below 10%
6% to below 8%
4% to below 6%
2% to below 4%
below 2%
6 points
5 points
4 points
3 points
2 points
1 point

13. b. Appropriate Provisioning for Probable Losses
b.1 Past due of more than one (1) year
Measures the adequacy of provision for probable losses
for past due accounts of more than one (1) year
Allowance for probable losses on receivables
Past due receivables over one (1) year
100% and above
90% to below 100%
70% to below 90%
50% to below 70%
30% to below 50%
10% to below 30%
Below 10% but not zero
7 points
6 points
5 points
4 points
3 points
2 points
1 point

14. b. Appropriate Provisioning for Probable Losses
b.2 Past due of thirty one (31) days to one (1) year
Measures the adequacy of provisions for probable
losses for past due accounts 31 days to 1 year
APL on receivables - allowance required for
past due receivables one year and above
Total past due receivables 31 days to 1 year
35% and above
30% to below 35%
25% to below 30%
20% to below 15%
15% to below 20%
10% to below 15%
Below 10% but not zero
7 points
6 points
5 points
4 points
3 points
2 points
1 point

17. a. Percentage of non-earning assets to
total assets
Measures the percentage of non-earning assets
to total assets
Non-earning Assets
--------------------------------------Total Assets
10% and below
Above 10% to 20%
Above 20% to 30%
Above 30% to 40%
Above 40%
5
4
3
2
1
points
points
points
points
point

18. b. Members' equity to total assets
Measures the degree of participation of
members' share to total assets
Paid-up Share + Deposit for Capital
Subscription
----------------------------------------------------Total Assets
40% to below 50%
50% to below 60%
30% to below 40%
60% to below 70%
20% to below 30%
Below 20% or Above 70%
5 points
3 points
3 points
2 points
2 points
1 point

19. c. Deposit liabilities to total assets
Measures the percentage participation of
deposit liabilities to total assets
Total deposit liabilities
Total Assets
30% to 40%
Above 40% to 50%
20% to below 30%
Above 50% to 60%
Below 20% to 10%
Above 60% to 70%
Below 10% to 5%
Above 70% or below 5%
5 points
4 points
4 points
3 points
3 points
2 points
2 points
1 point

20. d. External borrowings to total assets
Measures the dependence of cooperative to
external borrowings
Total external borrowings
Total Assets
No external borrowings
1% to 20%
above 20% to 30%
above 30% to 40 %
above 40%
5 points
4 points
3 points
2 points
1 point

21. e. ACCOUNTS/LOANS RECEIVABLE TO TOTAL
ASSETS
5

24. a. Volume of business to total assets
Measure the capacity of assets to generate
business
Total volume of business
Total assets
100% and above
75% to below 100%
50% to below 75%
25% to below 50 %
5% to below 25%
below 5%
5 points
4 points
3 points
2 points
1 point
zero

25. b. Solvency
Measures the degree of protection that the cooperative has
for members savings and share capital in the event of
liquidation of coop's assets and liabilities
(Assets + APL) - [ (Total liabilities - Deposit liabilities)+
(Past due receivables + restructured receivables +
receivables under litigation)]
--------------------------------------------------------------------------------Deposit liabilities + Share capital
10% and above
100% to below 110%
85% to below 100%
75% to below 85%
50% below 75 %
5 points
4 points
3 points
2 points
1 point

26. c. Liquidity
Measures the cooperative's ability to service
withdrawal of members' deposit on time
Liquid assets - Short term payables
Total members' deposit
15% to 30%
Below 15% to 10%
Above 30 to 50%
Below 10% to 5%
Above 50% to 60%
Below 5% to 1%
Above 60 to 80%
Above 80% or below 1%
5 points
4 points
4 points
3 points
3 points
2 points
2 points
1 point

27. d. Efficiency
d.1 Cost per volume of business
Measures the efficiency in managing the cooperative's
business
Operating cost – (Members‘ Benefit Expense
+ Social Service Expense)
---------------------------------------------------------------------------total volume of business
25 cents and below
26 to 22 cents
33 to 39 cents
40 to 46 cents
47 cents and above
5 points
3 points
2 points
1 point
zero

28. d. Efficiency
d. 2 Administrative efficiency
Administrative cost – (Members Benefit
Expense + Social Service Expense)
------------------------------------------------------------Average total assets
10% and above
Above 10% to below 15%
Above 15% to below 20%
Above 20% to below 25%
Above 25%
5 points
3 points
2 points
1 point
zero

29. d. Efficiency
d.5 Turnovers
Measures the number of times receivables or inventories
are moving within the reporting period
Receivables (trade &loans)
Average Receivables
4 times and more
3 to below 4 times
2 to below 3 times
Below 2 times
5 points
3 points
2 points
1 point