DEVELOPMENT OF COOPERATIVE STANDARDS OF CANON’S EMPLOYEE (THAILAND) SAVING COOPERATIVE LIMITED

Abstract

The objectives of this research were to 1) study the financial ratio of cooperatives from 2014 to 2018, 2) compare the financial ratio of cooperatives for the year 2018 compared with the average financial standards, 3) develop the financial standards of the cooperatives to meet the standards, 4) study operating standards and the internal management process of the cooperative for the year 2018 and 5) develop operational standards and the management process within the cooperative to achieve the highest level of standards.By collecting and analyzing data using the concept based on the CAMELS Analysis theory and peer group technique in 6 dimensions, consisting of 20 financial ratios and data from 7 cooperative standard criteria, including cooperative performance measurement and 137 administrative procedures within the cooperative. The research found as follows. 1) In terms of financial ratio of cooperatives from 2014 to 2018, there were several dimensions involved. For Dimension 1, the capital growth rate of cooperatives and the efficiency of finding a return on equity were lower. In Dimension 2, bringing assets to generate revenue can create return for profit reduction and lower growth rates of assets. Dimension 3 pointed the decline in growth rate of the business. Dimension 4 revealed growth rate of reserves and low net profit margin. In Dimension 6, members resigned higher and lower Interest rates. 2) After comparison between financial ratio and average financial standards, it revealed that, in Dimension 1, debt to equity ratio cooperative capital growth rate and the return on equity ratio were lower than the average of the cooperative. For Dimension 2, the asset rotation rate and the asset growth rate were lower than the average. In Dimension 3, the business growth rate is below average. For Dimension 4, profit per member savings per member growth rate of reserves and the net profit growth rate were below average. 3) In terms of financial standards development, the cooperative must develop the capital growth rate of the cooperatives, return on equity ratios, asset rotation rate and asset growth rate. Also, the cooperatives should increase business volume, income from interest and return on investment adhere to the white cooperative principle with good governance and should primarily focus on businesses that provide membership services. 4) After the study of 2018 standards of operation and internal management processes, the score was at a very good level as of 92.60. 5) Finally, for the standard development, the cooperative should conduct a deposit business and develop 80 percent of member’s participation in the business operation.