Does cash flow optimize financial performance of cooperative?

Abstract

Globalization has changed the corporate sector, allowing the wealthy to control the market. The weak side is excluded from competition and becomes a passive observer. This research examines the cash flow operations of Koyafa's savings and loan and trade sectors to establish its financial performance. The study incorporates quantitative data from Koyafa's financial records and qualitative data from the cooperative's AD/ART. Linear regression was employed using SPSS 25. According to the research, Koyafa has not prepared financial accounts in accordance with PSAK No. 27. The current financial records do not adequately represent Koyafa's competence to manage its finances. According to financial records, Koyafa's liquidity in meeting its short- and long-term financial commitments is still insufficient, even though company earns net money every year. Koyafa's net profit is adequate due of effective asset investment. Cash flow and liquidity have a favorable influence on cooperative earnings, thus it's important to manage them for better financial performance. Koyafa must restructure its company and inventories to meet its goal and objective.