Financial Ratios
About Financial Ratios
Financial ratios give business owners a means to assess their company's performance and contrast it with that of other companies in the same sector. Ratios assess the connection between two or more financial statement elements. When data from many time periods are compared, they are most useful.
There are several standard ratios that are frequently used in accounting to assess the overall financial health of a firm or other entity.
Why is Financial Ratios important?
Ratio analysis is a practical management technique that may help you better understand financial outcomes and trends over time as well as give important benchmarks for organizational success. Ratio analysis will be used by managers to identify areas of strength and weakness where plans and initiatives may be developed.
Ratio analysis can be used, among other things, to assess a company's position in the market by comparing its financial performance to that of other companies in the same sector. Companies can utilize ratios to see if there is a pattern in their financial performance.
Who should take the Financial Ratios Exam?
- Finance managers, senior executives, executives
- Anyone looking for finance jobs.
- Student pursuing courses like CA, CFA,CPA, ACCA, CIMA, MBA Finance or Finance Graduate
- Investment Professional /Banker
- Small and medium business owner
- Startup founder or retail investor
Financial Ratios Certification Course Outline
- Activity Ratios
- Debtors Turnover ratio
- Days Sales outstanding
- Inventory Turnover ratio
- Days inventory on hand
- Payable Turnover ratio
- Days payable outstanding
- Working Capital Turnover ratio
- Total assets Turnover ratio
- Fixed assets Turnover ratio
- Liquidity Ratios
- Current ratio
- Quick ratio
- Cash ratio
- Defensive Interval ratio
- Cash conversion cycle
- Solvency Ratios
- Debt to capital ratio
- Debt to asset ratio
- Debt to Equity ratio
- Capital gearing ratio
- Financial Leverage ratio
- Interest coverage ratio
- Profitability Ratios
- Gross profit margin
- Operating profit margin
- Pretax profit margin
- Net profit margin
- Return on assets
- Return on capital
- Return on Equity
- Valuation or Market price Ratios
- Earnings per share
- Price to earnings ratio
- Price to earnings growth ratio
- Payout Ratio
- Dividend Yield
- Price to Cash flow ratio
- Price-to-sales ratio