Ratio Analysis for Financial Statements [FIN0136]

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
3.0 hours

Lesson Objectives:

Measuring Solvency

  • recognize the importance of using solvency ratios to analyze the effectiveness of how management is using company resources.
  • use solvency analysis to identify the relationship between company characteristics and strategies and the ability to meet long- and short-term obligations.
  • use liquidity ratio (Current and Quick) analysis to interpret financial information about a company.
  • use leverage ratio analysis to assess the financial health of a company.

    • Measuring Activity, Efficiency, and Profitability

  • recognize the benefits of using return on investment ratios to measure financial performance.
  • identify how different strategies impact the activity and efficiency performance of a business, as reflected in the activity ratios.
  • use profitability ratios to identify strategies that will improve targeted areas of the profit performance of a business.

    • Market Value Ratios and Earnings Growth

  • recognize the importance of using Market Value and Sustainable Growth analysis in assessing both the current and the potential value and growth of a company.
  • use Market Value ratios to evaluate the future prospects and earnings of a business.
  • apply ROE and Sustainable Growth analysis to assess the growth potential and capacity of a company.

    • Course Number: FIN0136