Financial Performance and Growth Trend Analysis of Furra Institute of Development Studies and Education Share Company in Sidama Region, Ethiopia

Abstract

The main objective of this study is to evaluate the financial performance and trends of Furra institute of development studies and education share company (FIDSE S.C) in the Sidama region, Ethiopia. Financial performance analysis is very important to identify whether or not the financial position of a given company is healthy or sound. In this study, secondary data was collected from audited financial statist prepared by furra institution from period 2012 to 2020 G.C, and other relevant sources. Financial reports are considered the population for this study. Eight (8) year audited financial reports were selected as sample purposively and analyzed for this study. Ratio and trends analysis was utilized also table and graphs, average mean were used to present data. Liquidity ratio, long-term solvency, (leverage) ratio, profitability ratio, turnover ratio were used. The result of the analysis founds that overall liquidity positions were satisfactory, TD to TE, and TD to TA ratios were lower. Also, the study found that 95% of institutions’ assets and operations are financed by internal equity capital. Except for fluctuated trends in net profit, growth in sales, GP, total asset, and total equity were showed positive and incremental growth over the study period, Thus, it concluded that the overall financial position of the Furra institution over the study period was satisfactory. Thus, the researcher recommended to management that profitability should be improved more by minimizing admin and operating expense as well as by mixing some extent of debit to finance other projects and also to get tax shield.