DEBT MANAGEMENT PRACTICES AND ITS IMPLICATIONS TO SOCOTECO II'S FINANCIAL PERFORMANCE

THIS PAPER AIMED TO DESCRIBE THE IMPLICATIONS OF DEBT MANAGEMENT PRACTICES TO SOUTH COTABATO II ELECTRIC COOPERATIVE, INC.( SOCOTECO II) FINANCIAL PERFORMANCE MEASURED IN TERMS OF NET INCOME, RETURN ON EQUITY (ROE) AND RETURN ON ASSET (ROA) FOR THE PERIOD OF 2013 TO 2015 THE PRIMARY DATA WAS COLLECTED USING A SELF-ADMINISTERED QUESTIONNAIRE FOR EMPLOYEES IN SENIOR MANAGEMENT POSITION THE FINANCIAL AND ADMINISTRATIVE DEPARTMENTS WITHIN SOCOTECO II. SECONDARY DATA WERE TAKEN FROM COOPERATIVE'S FINANCIAL STATEMENTS. DATA ANALYSIS AND REPORT FINDINGS USE DESCRIPTIVE, AND FINANCIAL RATIO ANALYSIS. THE RESULTS SHOWED THAT COOPERATIVE'S OVERALL FINANCIAL PERFORMANCE WERE POSITIVELY AFFECTED BY THE DEBT MANAGEMENT PRACTICES. ALL DEBT MANAGEMENT POLICIES ARE AIMED AT SUPPORTING THE LOWEST POSSIBLE COST OF BORROWING AND THE BEST PRACTICES ON ALL ASPECTS OF DEBT MANAGEMENT PROVIDE AS RESOURCE TO HELP FINANCE OFFICERS EXPLAIN, DOCUMENT, AND DEPEND THEIR DEBT-RELATED DECISIONS AND RECOMMENDATION TO ELECTED OFFICIALS, STAFF AND THE TAXPAYERS AND RATEPAYERS THEY SERVE. THE STUDY CONCLUDED THAT THE TOP MANAGEMENT TO EMBRACE THE USEFULNESS OF SUCH PRACTICES AND THEIR CONTRIBUTION TOWARDS THE ORGANIZATION AND OVERALL PERFORMANCE.