Analyzing Financial Statements

Overview/Description
 This course introduces the learner to ratio analysis and how ratios are used in analyzing financial statements. Ratio analysis is used by businesses, investors, creditors, and stockholders in decision-making. Up-to-date audited reports from past and current financial statements are used to secure the most accurate ratio analysis results.

Target Audience
 This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.

Expected Duration
2.0 hours

Lesson Objectives:

Solvency Ratios

  • recognize the importance of using solvency ratios to analyze financial statements.
  • distinguish between short- and long-term solvency.
  • calculate liquidity ratios used in measuring the short-term solvency of a business.
  • calculate leverage ratios used in measuring the long-term solvency of a business.

    • Return on Investment Ratios

  • recognize the benefits of using return on investment ratios to analyze financial statements.
  • calculate profitability ratios used to determine the profit performance of a business.
  • calculate activity ratios used to determine the asset performance of a business.

    • Evaluating Future Prospects

  • recognize the importance of using stock ratios and common size statement techniques to analyze financial statements.
  • calculate stock ratios used to determine future returns of a business.
  • identify how common size statements supplement ratio analysis.

    • Course Number: FIN0114