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A Comparative Financial Ratio Analysis of U.S. Farmer Cooperatives Using Nonparametric Statistics

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  • Royer, Jeffrey S.

Abstract

A comparative ratio analysis using nonparametric statistical methods provides no evidence to support the hypothesis that U.S. farmer cooperatives generally are financially weaker than other firms. Although some cooperative groups had lower current ratios than industry standards, most of these groups consisted of marketing associations for which differences may be explained largely by the unique business relationships between the associations and their patrons. Comparisons of debt/equity ratios indicate that, except for regional grain and farm supply associations, cooperatives generally are less leveraged than other firms. The overall financial strength of cooperatives appears better than during the early 1980s.

Suggested Citation

  • Royer, Jeffrey S., 1991. "A Comparative Financial Ratio Analysis of U.S. Farmer Cooperatives Using Nonparametric Statistics," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6, pages 1-23.
    • Handle: RePEc:ags:joagco:46257
    DOI: 10.22004/ag.econ.46257
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    References listed on IDEAS

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    1. repec:ags:uersfc:152847 is not listed on IDEAS
    2. Griffin, Nelda & Wissman, Roger & Monroe, William J. & Yager, Francis P. & Purdue, Elmer, 1980. "The Changing Financial Structure of Farmer Cooperatives," Farmer Cooperative Research Report (FCRR) 166999, United States Department of Agriculture, Economic Research Service.
    3. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development.
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    Cited by:

    1. Chaddad, Fabio Ribas, 2006. "Investment Constraints in Agricultural Cooperatives: Theory, Evidence and Solutions," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 143259, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    2. Chaddad, Fabio Ribas & Heckelei, Thomas, 2003. "Access To Capital And Firm-Level Investment Behavior In Food Industries: A Comparison Of Cooperatives And Publicly Traded Firms," 2003 Annual meeting, July 27-30, Montreal, Canada 22205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Grashuis, Jasper & Cook, Michael, 2016. "Capital, Ownership, and Governance: Analyzing the Structure of U.S. Farmer Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235677, Agricultural and Applied Economics Association.
    4. MCarmen Martínez†Victoria & Narciso Arcas Lario & Mariluz Maté Sánchez Val, 2018. "Financial behavior of cooperatives and investor†owned firms: An empirical analysis of the Spanish fruit and vegetable sector," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 456-471, March.
    5. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    6. Royer, Jeffrey S., 2012. "Implications of the Cooperative Organizational Form for Vertical Expansion," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-20.
    7. Hopp, Fredrick Neal, 1994. "A financial analysis of grain marketing and production supply cooperatives, 1985-1991," ISU General Staff Papers 1994010108000017637, Iowa State University, Department of Economics.

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