For Release: April 19, 2010
Contact: Mike O’Brien, Andrew Don
HERNDON, VA—National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) announced today preliminary findings from its annual Key Ratio Trend Analysis (KRTA), based on the 2009 operational results of 630 electric distribution cooperatives compared to a sample of the same cooperatives last year. The final KRTA report, which is expected to include results from approximately 820 distribution cooperatives, will be available in August.
“Although 2009 was a tough year for the U.S. economy, the preliminary KRTA numbers show that co-ops once again performed very well. The median financial ratios all showed an improvement over the prior year,” said Claudia Phillips, CFC vice president of Programs and Planning Analysis and KRTA manager. “While these are not final KRTA results, this preliminary report of 630 systems is a significant sample.”
The KRTA report is based on data taken from Form 7 reports—financial and statistical reports that distribution cooperatives provide annually—for the period ending December 31, 2009.
Phillips pointed to three ratios that show electric cooperatives are maintaining their financial strength during the economic downturn: Equity as a Percentage of Assets, Times Interest Earned Ratio (TIER) and Modified Debt Service Coverage (MDSC). For the median distribution cooperative among the 630 reporting, these three financial ratios were:
Equity as a Percentage of Assets, which increased to 41.0 percent in 2009 from 40.5 in 2008.
The preliminary KRTA data show there were increases in operating costs in 2009, but revenue and margins also increased, which indicates cooperatives are successfully passing through cost increases to consumers.
The preliminary KRTA numbers for two ratios related to consumer payments were stable. This shows that electric cooperative consumers are paying their bills on time, even during difficult economic conditions.
National Rural Utilities Cooperative Finance Corporation (CFC) is a cooperative that serves the nation's rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services.
CFC’s 2008 and 2009 Preliminary KRTA Data
All numbers are medians
Equity as % of Assets
Power Cost per Total kwh Sold (mills)
Total Operating Expense per kwh Sold (mills)
Total Operating Revenue per kwh Sold (mills)
Total Margins per kwh Sold (mills)
Annual Growth in Number of Consumers (%)
Annual Growth in kwh Sold (%)
Accounts Receivable Over 60 Days as % of Operating Revenue
Amount Written Off as % of Operating Revenue