ESTIMATING THE PROFITABILITY OF POOL COOPERATIVES

Profitability measures are omitted from performance analyses of marketing pool cooperatives that do not include raw products in their reported costs. A procedure to estimate the profitability of these cooperatives is proposed, converting net proceeds to a figure comparable to standard net profit or net margin. The median ROE calculated using the proposed adjustment was found to be significantly different from the median ROE of "net-margin-reporting" pools over the period 1971-1987. Application of this procedure will allow pool cooperatives to compare their profitability to other cooperatives and investor-owned firms.


Subject(s):
Issue Date:
1990
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/13788
PURL Identifier:
http://purl.umn.edu/13788
Total Pages:
13
Series Statement:
Staff Paper P90-7




 Record created 2017-04-01, last modified 2020-10-28

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