We will learn how to use ratio analysis to help with decision making from a corporate finance perspective. The financial statements, including the balance sheet and income statement, are the primary tools used for ratio analysis. The financial statements help us understand past performance and where the organization stands at this time. Ratio analysis helps us project future performance and where the organization may stand in the future.
This course will demonstrate concepts using many practice problems, including problems using Microsoft Excel. Each Microsoft Excel problem will include a downloadable worksheet with at least two tabs, one being the answer key, the other being a preformatted worksheet that can be used to work the problem in a step-by-step format along with instructional videos.
Learners will know what ratio analysis is. They will understand the DuPont System of analysis.
We will demonstrate the concept of return on investment (ROI) and apply it to many scenarios.
The course will demonstrate return on asset, total asset turnover, & profit margin calculations.
We will discuss return on equity and debt to equity ratios and how they can be used.
Learners will understand how to calculate the accounts receivable collection period.
We will also cover times interest earned and fixed charge coverage calculations.
The course will demonstrate return on equity trend analysis.
We will show how ratio analysis can be used to compare different divisions of an organization.
Learners will be able to use ratio analysis to project performance in the future, constructing a projected income statement and balance sheet.
Practice Probs - Financial Ratios
Excel Probs - Financial Ratios
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3311 Profit Margin Percent
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4312 Return on Investment (ROI)
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5313 Return on Assets, Total Asset Turnover, & Profit Margin
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6314 Return on Investment, Total Asset Turnover, & Profit Margin
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7315 Profit Margin Two Years Comparison & Income Statement
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8317 Expense to Sales Ratios
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9318 Return on Assets, Return on Equity, & Asset Turnover
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10325 Total Asset Turnover & Return on Equity-More Complex Relationships
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11326 Total Asset Turnover, Return on Equity, & Profit Margin
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12327 Return on Equity & Other Ratios Two Company Comparison
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13328 Average AR Collection Period
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14331 Turnover Ratios Two Year Comparison
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15332 Multiple Ratio Calculations
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16333 Times Interest Earned & Fixed Charge Coverage
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17337 Asset Turnover & Return on Equity Trend Analysis
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18338 Asset Turnover & Debt to Asset Compared to Industry
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19339 Net Profit Margin & ROA Division Comparison
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20342 Ratios to Create Current Assets Portion of Balance Sheet
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21343 Use Ratios to Create a Balance Sheet
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22344 Use Ratios to Create Account Balances
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23346 Comprehensive Ratio Analysis
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24347 P1 Comprehensive Ratio – Two Companies Part 1
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25347 P2 Comprehensive Ratio – Two Companies Part 2