How to Master Financial Statements: Financial Ratio Analysis and Interpretation

While financial statements are important, what do these data tell us about the company's health? You are now able to perform ratio analysis.

Ratios are used by stakeholders to help them identify trends, compare results with others and evaluate performance. This course will teach you how to use ratios in order to assess various aspects of a company, including profitability, liquidity and efficiency, as well as gearing, investment, and gearing.

What is a ratio? What are ratios? What does it mean? And what do the implications for your business? This course will allow you to answer these questions as well as many others.

This course will teach you how to calculate the return on capital employed ratio (ROCE) to determine the efficiency of a company's capital use to generate profits.

These ratios are described in terms such as EBIT (earning before interest and taxes), and you'll also learn how to calculate the net and gross profit margin.

How can efficiency ratios help companies better manage their assets and liabilities? This course will teach you how efficiency ratios can be used in conjunction with other key factors, such as inventory turnover, trade receivables, payables, overtrading and sales per employee.