Analysis of the Financial Performance of Turkish Agricultural Credit Cooperatives in Terms of Liquidity, Financial Structure and Profitability Indicators
Chapter from the book: Şahin, A. (ed.) 2023. Academic Research and Evaluations in Social Sciences - V.

Mehtab Çelik
Atatürk University
Ersin Korkmaz
Erzincan Binali Yıldırım University

Synopsis

Thanks to conditions such as Turkey's geopolitical location, geographical structure and suitability of climatic conditions, Turkey has a significant potential in the production and diversity of agricultural products. The main factor for producers to realize this potential and enable them to carry out sustainable and efficient agricultural production is the source of finance. Turkish Agricultural Credit Cooperatives were established in order to meet the financing needs of farmers, evaluate their products and provide the production tools they need at affordable prices. In this context, the study aims to evaluate the financial performance of the organization in question in terms of liquidity, financial structure and profitability. For this purpose, the data obtained from the consolidated balance sheet and income statements included in the institution's activity reports for the 2018-2022 period were analyzed by the ratio analysis method. As a result of the research, it was determined that the acid test ratio, one of the liquidity indicators, was at the desired level, the current ratio was low and the cash ratio was at very low levels. When the financial structure ratios are evaluated, it was determined that the financial leverage ratio increased significantly in 2022, therefore the equity capital ratio decreased in this period, and the financing ratio was well below the generally accepted level over the years. Finally, when the profitability ratios were examined, it was determined that the gross profit margin decreased significantly especially in 2022, the net profit margin increased only in 2021 and decreased continuously in other years, and the active profitability ratio increased in other years except 2019.

How to cite this book

Çelik, M. & Korkmaz, E. (2023). Analysis of the Financial Performance of Turkish Agricultural Credit Cooperatives in Terms of Liquidity, Financial Structure and Profitability Indicators. In: Şahin, A. (ed.), Academic Research and Evaluations in Social Sciences - V. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub401.c1767

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Published

December 30, 2023

DOI