CFC’s Initial 2020 Key Ratio Trend Analysis Results Demonstrate Cooperatives’ Financial Strength


July 19, 2021

Contact: Brad CaptainCorporate Relations, 800-424-2954

DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) has analyzed preliminary data for its 2020 Key Ratio Trend Analysis (KRTA) report, an annual assessment of financial trends among electric distribution cooperatives nationwide. The results show the majority of electric cooperatives have maintained strong financial metrics and have successfully managed through last year’s economic downturn.

“Rural electric distribution cooperatives’ disciplined management and their ability to navigate the challenges created by the pandemic is a testament to the community-based electric cooperative business model,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said. “Members ended 2020 with solid financials, consumer growth and stable operations positioning them to continue to help improve the quality of life in rural America well into the future.”

Financial performance was strong year-over-year as demonstrated by coverage ratios, which assess ability to repay debt, and equity levels. Both times interest earned ratio (TIER) and modified debt service coverage (MDSC) ratios experienced slight increases. TIER rose from 2.64 to 2.80 and MDSC rose from 1.91 to 1.96. Equity as a percentage of assets also trended higher to 45.80 percent, compared with 45.61 percent in 2019.

Consumer growth was positive in 2020 with nearly 90 percent of cooperatives showing increases, including notable pockets of high consumer growth in Texas, Tennessee, Georgia and Florida.

Despite the economic challenges and less than 2 percent declines in both kilowatt-hour sales and revenue, cooperative leaders held accounts receivable over 60 days and write-offs steady from 2019 as well as continued to benefit from the low-interest rate environment with average interest rates on outstanding debt down to 3.69 percent in 2020 from 3.98 percent in both 2018 and 2019.

Preliminary KRTA results are based on data submitted by 812 electric distribution cooperatives for the year ending Dec. 31, 2020. CFC calculates 145 financial and operational ratios for each cooperative and provides a report showing the cooperative’s ratio compared with the U.S. median value. Median reporting minimizes the effect of outliers and provides a clearer picture of cooperative performance.

About CFC
Created and owned by America’s electric cooperative network, the National Rural Utilities Cooperative Finance Corporation (CFC)—a nonprofit finance cooperative with more than $29 billion in assets—provides unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. CFC is an equal opportunity provider. Visit us online at

About KRTA
CFC has published KRTA—an annual report that tracks the median value of 145 financial and operational ratios for participating electric distribution cooperatives over the previous five years—since 1975. Based on unaudited data reported by electric distribution cooperatives, KRTA provides electric cooperative CEOs and directors/trustees with a complete picture of their system’s financial performance.