ANALYSIS OF FINANCIAL PERFOMANCE OF KOPERASI KONSUMEN EKONOMI UMMAT SEJAHTERA SIDENRENG RAPPANG REGENCY (2020-2023)

Abstract

Cooperatives are one of the key pillars supporting the development of people’s economy in Indonesia. To ensure the sustainability and effectiveness of this role, accurate measurement of financial performance is essential to support managerial decision-making and serve as a signal to external parties regarding the cooperative’s condition. This study aims to assess the financial performance of Koperasi Konsumen Ekonomi Ummat Sejahtera in Sidenreng Rappang Regency during the 2020–2023 period using a financial ratio approach, including liquidity, solvency, and profitability ratios. The research method is descriptive quantitative with a time series analysis technique. The data used are secondary data obtained through documentation of the cooperative’s annual financial statements, including the balance sheet and income statement. The analysis refers to the health assessment standards for cooperatives as regulated in the Regulation of the Minister of Cooperatives and SMEs of the Republic of Indonesia No. 06/Per/M.KUKM/V/2006. The results show that in terms of liquidity, the cooperative experienced a significant decline indicating an unhealthy condition; in terms of solvency, there was an increasing dependence on debt; and in terms of profitability, the cooperative’s performance was suboptimal as reflected by below-standard ROA and ROE values. In conclusion, the overall financial performance of the cooperative during the period under review did not meet healthy financial criteria and requires comprehensive improvement in financial management.