A Beginners Guide to Financial Ratio Analysis

About this course

This course will teach you how to compute and interpret the basic ratios used in financial statement analysis, including the following:Activity ratiosaccounts receivable turnoverdays sales in accounts receivableinventory turnoverdays of inventory on handaccounts payable turnovernumber of days of payablesand cash conversion cycleLiquidity ratioscurrent ratioquick ratiocash ratiodefensive intervalothersSolvency ratiosdebt-to-equitydebt-to-capitalinterest coveragefixed charge coverageothersProfitability ratiosgross marginprofit marginreturn on assetsreturn on equityothersValuation ratios earnings per shareearnings yieldprice-earnings ratiodividend yielddividend payoutothers. You will be able to use a spreadsheet to conduct a complete analysis of a company using Sherwin-Williams, Facebook, and Kroger as examples, including:Dupont analysisequity analysissegment analysiscredit analysis. You will be able to interpret the results and suggest remedial action to improve the company's performance, noting when certain accounting methods could skew the results. Lastly, you will be able to use stock screening software to find stock investments using the ratios learned in the course. The course provides the following resources:quizzes and PowerPoint slide handout for the nineteen modulesspreadsheet financial ratios packs tha