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Research Paper | Economics | Ethiopia | Volume 5 Issue 5, May 2016

Evaluation of Consolidated Financial Performance Analysis of Dedebit Credit & Saving Institution (DECSI)

Teshale Berhane ^[2] | Mohammedawel Yesuf ^[2] | Kifle Negash

Abstract: The study entitled Evaluation of consolidated financial performances analysis was conducted on DECSI. The study answered the following research questions (1) what seems the financial performance of Dedebit credit & saving institution over the years (2) How is the operating profitability and efficiency of Dedebit credit & saving institution over the years (3) What are the indicators of the financial and operational performances of Dedebit credit & saving institution over the years The data used in this study was entirely a 3 years secondary data only. As the aim of this study was to evaluate the consolidated financial performance analysis, an audited financial statement of DECSI which has been reported to the National Bank of Ethiopia was used. The collected data were analyzed using different financial and operating performance indicators, and ratio analyses were applied to evaluate the financial sustainability and profitability, portfolio quality, and efficiency of DECSI over the study period. The performance of DECSI in managing its assets to generate a net profit has been positive all over the study periods. Although, the ROA in 2014 G. C was greater than the previous years, DECSIs ROA was slightly decreased in 2015 G. C. DECSI had a ROE of 12.88 % in 2014 which was the highest figure from the rest of the study periods. In 2015 DECSIs ROE was slightly reduced compared to that of the preceding year. DECSIs operational self-sufficiency was above the threshold of 1, i. e. all over the study years the institutions OSS were more than 1 which implies the institutions operating revenue is sufficient enough to cover all of its operating expenses. According to the DR results, DECSIs dependency ratio has been decreasing from year to year (15.44 % in 2013 to 13.60 % in 2014 and again reduced to 12.73 % in 2015) all over the study periods which is a good indicator that the institution has been able to increase its rely on own equity and operational revenues. With regard to the operating efficiency, DECSI attains lower ratio (i. e. , 13.14 %) in the year 2015. From this, one can conclude that DECSI incurred almost 13 cents for administration and personnel (operating) expense in turn to provide a $1 average gross loan portfolio to its customers in the year 2015.

Keywords: Dedebit credit & saving institution, Microfinance, Tigray, Consolidated sinancial statement, and Ratio analysis

Edition: Volume 5 Issue 5, May 2016,

Pages: 2161 - 2167

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