How we evaluate SACCO performance to help you make informed investment decisions.
The Performance Index is a comprehensive scoring system (0-200) that evaluates SACCOs based on financial health, growth trajectory, dividend performance, and market activity. Higher scores indicate stronger overall performance.
Performance Index = (0.50 × Fundamental Score) + (0.50 × Market Score)
Where the Fundamental Score is weighted as:
| Component | Weight | What It Measures |
|---|---|---|
| Financial Score | 70% of Fundamental | Capital adequacy, liquidity, asset quality, efficiency, profitability |
| Growth Score | 20% of Fundamental | Asset growth and net income growth year-over-year |
| Dividend Score | 10% of Fundamental | Dividend rate (max 50 pts) and dividend yield (max 50 pts) |
Final breakdown: (0.35 × Financial) + (0.10 × Growth) + (0.05 × Dividend) + (0.50 × Market)
Based on share price performance:
Example: 10% price increase = 120 market score
Financial Score =
0.20 × capital_adequacy +
0.15 × liquidity +
0.25 × (100 - asset_quality) +
0.15 × (100 - efficiency) +
0.25 × (profitability × 100)Where each component is a percentage ratio from financial statements.
Growth Score =
0.60 × asset_growth × 100 +
0.40 × income_growth × 100Asset Growth: (Current Assets - Previous Assets) ÷ Previous Assets
Income Growth: (Current Net Income - Previous Net Income) ÷ Previous Net Income
Dividend Score =
min(50, dividend_rate × 5) + // Max 50 points
min(50, dividend_yield × 100) // Max 50 pointsExample: 8% dividend rate = 40 points | 0.6% yield = 60 points → Total: 100 points
| Component | Value | Calculation | Score |
|---|---|---|---|
| Financial Score | 85.5 | × 0.35 | 29.93 |
| Growth Score | 12.3 | × 0.10 | 1.23 |
| Dividend Score | 75.0 | × 0.05 | 3.75 |
| Market Score | 145.2 | × 0.50 | 72.60 |
| Performance Index | 107.51 | ||