Learn tools to analyze financial statements, including vertical analysis, horizontal analysis, and ratio analysis.
This course will provide resources such as downloadable PDF files and preformatted Excel spreadsheet to help understand and apply the concepts.
We will list and describe the tools for financial statement analysis, including vertical analysis, horizontal analysis, and ratio analysis.
Below is more detail about the concepts we will learn.
This course will help us understand, calculate, and analyze horizontal analysis. Horizontal analysis is used to compare financial data and performance of a company across time and is a common and intuitive form of analysis.
We will explain, calculate, and analyze vertical analysis. Vertical analysis also termed common size financial statements, displays all items as percentages of a common base figure instead of absolute numbers. Vertical analysis is very useful to compare financial statements for companies of different sizes.
The course will list and describe the categories of ratio analysis. Ratio analysis is a common form of financial statement analysis used to obtain a quick indication of a business’s financial performance in different areas. Ratios are often grouped into categories, including liquidity ratios, solvency ratios, profitability ratios, and market prospects ratios.
We will describe liquidity and efficiency ratios. We will list liquidity and efficiency ratios, perform calculations, and analyze their use.
The course will examine solvency ratios, listing solvency ratios, calculating solvency ratios, and analyzing their use.
We will Explain profitability ratios. The course will list profitability ratios. We will perform calculations and analysis of profitability ratios.
We will discuss market prospects ratios, listing out the market prospect ratios, discussing the formulas, and analyzing the use of market prospect ratios.
The course will calculate and analyze current ratios, acid-test ration, and accounts receivable ratios.
We will analyze and compute inventory turnover ratios, days’ sales uncollected, days’ sales in inventory, and total asset turnover.
The course will discuss and calculate the debt ratios, equity ratios, debt-to-equity ratios, and times interest earned.
We will explain and compute the profit margin ratio, gross margin ratio, and return on total assets.
The course will describe and calculate return on equity, book value per common share, and earnings per share.
We will calculate and analyze price earnings ratio and dividend yield.
The course will discuss and analyze the components of a financial statement analysis report. We will explain what software can do for us and what software cannot do.
Horizontal Analysis
Vertical Analysis – Common-Size Statements
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82 Horizontal Analysis
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9PDF - 305 Horizontal Analysis
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10305 Horizontal Analysis
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11Excel Worksheet Download
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12Worksheet- 305 Horizontal Analysis
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13PDF - 310 Trend Analysis
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14310 Trend Analysis
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15Excel Worksheet Download
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16Worksheet - 310 Trend Percents
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17Multiple Choice Question 2 - Financial Statement Analysis
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18Accounting Comic Break
Liquidity & Efficiency Ratios
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193 Vertical Analysis Common-Size Statements
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20PDF - 355 Vertical Analysis Common-Size Statements
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21355 Vertical Analysis Common-Size Statements
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22Excel Worksheet Download
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23Worksheet - 355 Vertical Analysis
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24Excel Worksheet Download
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25Worksheet - 357 Common Size Financial Statements
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26Multiple Choice Question 3 - Financial Statement Analysis
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27Multiple Choice Question 4 - Financial Statement Analysis
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28Discussion Question 1 - Financial Statement Analysis
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29Accounting Comic Break
Solvency Ratios
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304 Liquidity Ratios
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31List of Ratios
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32PDF - 410 Liquidity Ratios Part 1
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33410 Liquidity Ratios Part 1
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34PDF - 415 Liquidity Ratios Part 2
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35415 Liquidity Ratios Part 2
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36Excel Worksheet Download
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37Worksheet - 410 Liquidity and Efficiency Ratios
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38PDF - 420 Current ratio, quick or acid ration, and working capital-Accounting
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39420 Current ratio, quick or acid ration, and working capital-Accounting
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40Excel Worksheet Download
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41Worksheet - 420.10 Current ratio, quick ratio, acid-test ratio, working capital
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42Worksheet - 420.20 Current ratio, quick ratio, acid-test ratio, working capital
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43Worksheet - 420.30 Current ratio, quick ratio, acid-test ratio, working capital
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44Multiple Choice Question 5 - Financial Statement Analysis
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45Multiple Choice Question 6 - Financial Statement Analysis
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46Discussion Question 2 - Financial Statement Analysis
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47Accounting Comic Break
Profitability Ratios
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485 Solvency Ratios
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49List of Ratios
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50PDF - 505 Solvency Ratios
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51505 Solvency Ratios
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52Excel Worksheet Download
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53Worksheet - 505 Solvency Ratios
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54Multiple Choice Question 7 - Financial Statement Analysis
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55Multiple Choice Question 8 - Financial Statement Analysis
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56Discussion Question 3 - Financial Statement Analysis
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57Accounting Comic Break
Market Prospects Ratios
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586 Profitability Ratios
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59List of Ratios
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60PDF - 605 Profitability Ratios
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61605 Profitability Ratios
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62Excel Worksheet Download
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63Worksheet - 605 Profitability Ratios
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64Multiple Choice Question 9 - Financial Statement Analysis
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65Multiple Choice Question 10 - Financial Statement Analysis
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66Discussion Question 4 - Financial Statement Analysis
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67Accounting Comic Break
Ratio Analysis Practice Problem
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687 Market Prospects Ratios
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69List of Ratios
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70PDF - 705 Market Prospects Ratios
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71705 Market Prospects Ratios
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72Excel Worksheet Download
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73Worksheet - 705 Market Prospects
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74Multiple Choice Question 11 - Financial Statement Analysis
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75Multiple Choice Question 12 - Financial Statement Analysis
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76Discussion Question 5 - Financial Statement Analysis
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77Accounting Comic Break
Financial Statement Analysis Report
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788 Ratio Analysis Practice Problem
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79List of Ratios
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80Excel Worksheet Download
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81Worksheet = Ration Analysis Practice Problem
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82Multiple Choice Question 13 - Financial Statement Analysis
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83Multiple Choice Question 14 - Financial Statement Analysis
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84Discussion Question 6 - Financial Statement Analysis
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85Accounting Comic Break