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Aboriginal Co-operatives in Canada - Centre for the Study of Co ...

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Volume <strong>of</strong> bus<strong>in</strong>ess represents all types <strong>of</strong> revenues that accrue to co-ops. In 1997, <strong>the</strong> volume <strong>of</strong>bus<strong>in</strong>ess <strong>of</strong> NWT <strong>Aborig<strong>in</strong>al</strong> co-ops reached over $144 million, an <strong>in</strong>crease <strong>of</strong> 34.8% over <strong>the</strong>period 1993 to 1997. This <strong>in</strong>crease follows closely <strong>the</strong> growth <strong>in</strong> sales, which constitute <strong>the</strong>major component <strong>of</strong> <strong>the</strong> volume <strong>of</strong> bus<strong>in</strong>ess.6.5 Pr<strong>of</strong>its be<strong>for</strong>e TaxesWe can detect three periods <strong>in</strong>pr<strong>of</strong>its shown on Figure 6.5:Figure 6.5 Total Annual Pr<strong>of</strong>its Be<strong>for</strong>e Taxes - All Non-F<strong>in</strong>ancial Enterprises Vs NWT Abor <strong>Co</strong>-ops ($ million)<strong>in</strong> <strong>the</strong> first period <strong>the</strong>re was a80,000sharp <strong>in</strong>crease <strong>in</strong> pr<strong>of</strong>itsbetween 1993 and 1994 <strong>for</strong>70,0006.367,69060,0005.6both co-ops and o<strong>the</strong>r nonf<strong>in</strong>ancial5.2firms <strong>in</strong> <strong>Canada</strong>.50,00055,606 54,931 5.1Pr<strong>of</strong>its be<strong>for</strong>e taxes doubled40,00047,566(100% and 95% <strong>in</strong>crease <strong>for</strong>30,000 2.6co-ops and o<strong>the</strong>r firmsrespectively). Dur<strong>in</strong>g <strong>the</strong>20,000 24,41610,000second period (1994 to 1996),0co-ops recorded an annual1993 1994 1995 1996 1997average growth <strong>in</strong> pr<strong>of</strong>its <strong>of</strong>10.1%, compared to 7.9% <strong>for</strong><strong>the</strong> non-f<strong>in</strong>ancial sector.Non-F<strong>in</strong> SectorYearsNon-F<strong>in</strong> Abor <strong>Co</strong>-opsPr<strong>of</strong>its were <strong>in</strong>creas<strong>in</strong>g <strong>for</strong> <strong>the</strong> non-f<strong>in</strong>ancial sector, but decreas<strong>in</strong>g <strong>for</strong> co-ops <strong>in</strong> <strong>the</strong> last period(1997), <strong>the</strong> only year pr<strong>of</strong>its took opposite directions (+23% and –19% respectively). Part <strong>of</strong> <strong>the</strong>decrease <strong>in</strong> co-ops’ pr<strong>of</strong>its could be expla<strong>in</strong>ed by a lower number <strong>of</strong> co-ops <strong>in</strong> 1997 but this is notenough (<strong>the</strong> average pr<strong>of</strong>it was still lower <strong>in</strong> 1997). The decrease <strong>in</strong> pr<strong>of</strong>its is left unexpla<strong>in</strong>ed,s<strong>in</strong>ce even operat<strong>in</strong>g revenues <strong>of</strong> co-ops (i.e. sales and services) were higher <strong>in</strong> 1997 compared to1996.Non-F<strong>in</strong> SectorFigure 6.6 Investment <strong>in</strong> Property and Equipment - NWT<strong>Aborig<strong>in</strong>al</strong> <strong>Co</strong>-ops Vs NWT Private Sector (millions $)8.07.06.05.04.03.02.01.00.0Abor <strong>Co</strong>-ops6.6 Investment <strong>in</strong>Property andEquipment4504003503003656.37654Investment is calculated as adifference <strong>in</strong> capital stocksPrivate Sector2502001501002142271562.5217215181181-0.13210Abor <strong>Co</strong>-opsbetween two periods (usuallyyears). Capital stock consists500-1.11990 1991 1992 1993 1994 1995 1996 1997-1-2YearsPrivate Investment<strong>Co</strong>-op Investment110

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