CAMELS Analysis and Factor Analysis from Financial Information of Agricultural Cooperatives in Lampang Province

Abstract

The objective of this study was to conduct financial ratio analysis based on CAMELS analysis and factor analysis on those ratios of agricultural cooperatives in Lampang province. The data were collected from 34 agricultural cooperatives in Lampang Province from the accounting period of 2015. Data were analyzed by descriptive statistics, ie mean and standard deviation. Exploratory factor analysis, Principal Component Analysis (PCA), was performed to extract factor and Orthogonal rotation was performed using Varimax. The result indicated that factor analysis of financial ratios of agricultural cooperatives in Lampang province consist of three factors as follows. 1) Growth rate of assets, liabilities and equity included 4 financial ratios, sorted by factor loadings from the largest to the smallest, were Growth Rate of Capital (%), Growth Rate of Asset (%) Return on Equity (%) and Growth Rate of Debt (%) with factor loadings of 0.970, 0.969, 0.960, and 0.940, respectively. 2) Profit margins and growth rate of capital components included           4 financial ratios, sorted by factor loadings from the largest to the smallest, were Net Profit Margin (%), Gross Profit Margin (%), Growth Rate of Capital Reserve (%) and Growth Rate of Other Accumulated Capital (%) with factor loadings of 0.923, 0.857, 0.695, and 0.675, respectively.       3) Members component included 3 financial ratios, sorted by factor loadings from the largest to the smallest, were Savings per Member (Baht), Debt per Member (Baht) and Outstanding Debt Rate (%) with factor loadings of 0.902, 0.870 and 0.596, respectively.