Currently micro financing is one of the most powerful tools for combating poverty primarilyrnby providing loan to the poor section of the society. The number of micro financingrninstitutions serving the poor in Ethiopia has grown to over 27with in short period of timern.The steady growth in the sector has created a competition for scarce funding amongrninstitutions. Hence, recent years have seen a growing push to measure performance of micrornfinancing institutions in order to be able to compete and achieve their objectives. In light ofrnthis , the paper attempted to look at the performance of MFIs by taking six institutions as arncase from Profitability and Sustainability; Asset and Liability management; and Efficiencyrnand productivity perspectivesrnData for the study was from secondary sources and various ratios and indicators were usedrnto measure the performance of the MFIs .Five years data from 2002 to 2006 were used to seernthe trend in performancernThe majority of MFIs passed both operational and financial self sufficiency and fewer stillrnrequires support to survive and sustain in the industry. Most MFIs are strong performers onrnreturn on asset .in connection with liquidity, most MFIs lack strong position to effectrnimmediate obligations. large MFIs are more efficient and productive than small and mediumrnones. But small MFIs seem to reach the poorest section of the society. Finally ,the trend inrnperformance of microfinance institutions during those years of operation was encouraging