CFC’s Initial 2021 Key Ratio Trend Analysis Results Demonstrate Cooperatives’ Financial Strength


June 17, 2022

Contact: Brad CaptainCorporate Relations Group, 800-424-2954

DULLES, Va.—The National Rural Utilities Cooperative Finance Corporation (CFC) has analyzed preliminary data for its 2021 Key Ratio Trend Analysis (KRTA) report, an annual assessment of financial trends among electric distribution cooperatives nationwide. The results show electric cooperatives have maintained strong financial metrics and are experiencing growth across a number of measures, including consumers, sales, margins and utility plant.

“Rural electric distribution cooperatives’ disciplined management and their focus on improving the quality of life in the communities they serve is a testament to the cooperative business model,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said.

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 equity as a percentage of assets continued to trend upward. TIER rose from 2.80 to 2.95 while equity as a percentage of assets also trended higher to 45.97 percent, compared with 45.80 percent in 2020.

Consumer growth exceeded 1 percent, the highest in more than a decade, with nearly 93 percent of cooperatives showing increases, including notable pockets of greater than 2 percent consumer growth in Arizona, California, Idaho, Nevada and Utah.

Investment in utility plant also sustained its four-year growth trend, as demonstrated by an increase in the total utility plant ratio, which rose 3.95 percent in 2021 compared with 3.79 percent in 2020. “Electric cooperatives continue to invest in plant and utility infrastructure, including renewables and fiber, to ensure they provide their consumers with reliable, affordable and sustainable electricity into the future,” CFC Senior Vice President of Strategic Services Mark Snowden said.

In another positive sign, after a slight increase in 2020, both accounts receivable over 60 days and write-offs declined to pre-pandemic levels. Accounts receivable fell to 0.09 percent of operating revenue from 0.13 percent in 2020, and write-offs fell to 0.07 percent of revenue from 0.08 percent in 2020.

Preliminary KRTA results are based on data submitted by 812 electric distribution cooperatives for the year ending Dec. 31, 2021. 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 $30 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.