Interrelationship of PEARLS
Richardson, D.
Publication Date: Oct 1994
Published by: WOCCU - World Council of Credit Unions
Document Type: Paper
System for performance monitoring
PEARLS is a system of financial ratios that the World Council of Credit Unions (WOCCU) uses worldwide to monitor the performance of credit unions. This paper presents the interrelations among the ratios.
The important dimensions of PEARLS are:
- P- protection: refers to adequate protection of assets;
- E- effective financial structure: determines growth potential, earnings capacity, and overall financial strength;
- A- asset quality: measures the impact of ratios that do not generate income;
- R- rates of return and costs: disaggregates the essential components of net earnings;
- L- liquidity: determines whether cash and liquidity management is adequate;
- S- signs of growth: measures financial as well as membership growth.
This paper provides a collection of forms with questions, tables and checklists to be used in the PEARLS monitoring and evaluation system. It also includes a list of strategies to attain prescribed goals, and columns to mark out direct and indirect relationships between various factors.
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