A Beginners Guide to Financial Ratio Analysis
Using Facebook, Sherwin-Williams, and Kroger
Ratings 4.49 / 5.00
What You Will Learn!
- Compute a complete set of activity, liquidity, solvency, profitability, and valuation ratios ratios to analyze a company
- Perform a Dupont analysis, equity analysis, segment analysis and credit analysis for a company
- Interpret the results of a complete ratios analysis
- Compare a company's performance to another company
- Interpret how several different accounting methods can skew the results of a ratio analysis
- Suggest remedial actions to improve a company's performance as revealed by a ratio analysis
- Find stock investments using stock screening software and the ratios we will learn in the course
Description
This course will teach you how to compute and interpret the basic ratios used in financial statement analysis, including the following:
Activity ratios
accounts receivable turnover
days sales in accounts receivable
inventory turnover
days of inventory on hand
accounts payable turnover
number of days of payables
and cash conversion cycle
Liquidity ratios
current ratio
quick ratio
cash ratio
defensive interval
others
Solvency ratios
debt-to-equity
debt-to-capital
interest coverage
fixed charge coverage
others
Profitability ratios
gross margin
profit margin
return on assets
return on equity
others
Valuation ratios
earnings per share
earnings yield
price-earnings ratio
dividend yield
dividend payout
others.
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 analysis
equity analysis
segment analysis
credit 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 modules
spreadsheet financial ratios packs that compute all of the ratios for
Sherwin-Williams
Facebook
Kroger
blank spreadsheet for you to use with a company of your choice.
Ratio handout that provides summary for all of the ratios, including their computation.
This course will help students gain insight into a company's operations and help prepare them for a rewarding career in accounting and finance, including:
corporate finance
investment banking
private equity
mergers and acquisitions
hedge fund analysis
retail and corporate banking
business development
financial consulting
management consulting
auditing, both internal and external
risk management
asset management
Who Should Attend!
- Anyone working, or seeking employment, in the fields of finance and accounting, or anyone who desires to analyze companies to make stock investment decisions
