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.

Financial ratios has gained immense popularity across the globe resulting in huge demand for certified professionals.

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.

Financial ratios certified professionals, executives and managers are in high demand in companies across the globe.

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

Knowledge and Skills required for the Financial Ratios

Specific skills are needed to excel in career of financial ratios which includes analytical bent of mind and quick learning skills.

Financial Ratios Practice Exam Objectives

Financial Ratios exam focuses on assessing your skills and knowledge in accounting and financial ratios.

Financial Ratios Practice Exam Pre-requisite

There are no prerequisites for the Financial Ratios exam. Candidates who are well versed  in accounting and financial ratios can easily clear the exam.

Financial Ratios Certification Course Outline

1. Activity Ratios
2. Debtors Turnover ratio
3. Days Sales outstanding
4. Inventory Turnover ratio
5. Days inventory on hand
6. Payable Turnover ratio
7. Days payable outstanding
8. Working Capital Turnover ratio
9. Total assets Turnover ratio
10. Fixed assets Turnover ratio
11. Liquidity Ratios
12. Current ratio
13. Quick ratio
14. Cash ratio
15. Defensive Interval ratio
16. Cash conversion cycle
17. Solvency Ratios
18. Debt to capital ratio
19. Debt to asset ratio
20. Debt to Equity ratio
21. Capital gearing ratio
22. Financial Leverage ratio
23. Interest coverage ratio
24. Profitability Ratios
25. Gross profit margin
26. Operating profit margin
27. Pretax profit margin
28. Net profit margin
29. Return on assets
30. Return on capital
31. Return on Equity
32. Valuation or Market price Ratios
33. Earnings per share
34. Price to earnings ratio
35. Price to earnings growth ratio
36. Payout Ratio
37. Dividend Yield
38. Price to Cash flow ratio
39. Price-to-sales ratio

Exam Format and Information

Certification name – Certificate in Financial Ratios
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199