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Key Trend Ratios and how Capital measures up

Businesses will often look to financial ratios to determine their operational efficiency. Cooperatives have the benefit of the National Rural Utilities Cooperative Finance Corporation’s (CFC) Key Trend Ratio Analysis (KRTA) to help them assess their operational performance. CFC has been providing ratio analysis through KRTA to the nation’s distribution cooperatives since 1975. The financial information used to develop the ratios is gleaned from each cooperative at year-end through the use of a standard reporting process. The advantage of using CFC’s KRTA is that all cooperatives provide comparable data in the same format and it is easily compared.

Capital Electric Cooperative has long been a leader among cooperatives with a strong financial profile and positive key trend ratios. Many of the ratios in the KRTA show that Capital Electric is an extremely efficient cooperative when it comes to utilizing our members’ money. We are in the bottom 10 percent in operating revenue per dollar of investment in electric infrastructure and lowest 20 percent in electric revenue per kilowatt-hour sold, which means we have low overall electric rates compared to the nation’s cooperatives. We also really shine in the categories relating to expenses per consumer. Our total controllable expenses per consumer rank in the bottom 3 percent of more than 800 cooperatives. Compared to other cooperatives our size, we are in the bottom 2 percent of that same category. This means we are running a very efficient operation and controlling our expenses extremely well.

Our key ratios continue to be very strong in spite of the fact that we are in the top 2 percent in the category of annual growth in number of consumers. As you may expect, we are one of the fastest-growing cooperatives based on number of consumers in the country. Even with all of our growth, Capital Electric continues to receive high marks in service interruptions. Not only do we run in the lowest 7 percent of cooperatives relating to the duration of outages, but our system service availability of 99.99 percent places us in the top tier as well.

As cooperative members, we can be proud of the operational performance that Capital Electric has been able to maintain over the years. We thank our consumer-members for being active in the management of the cooperative through the board members you elect. We are doing great things together!


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