Financial Analysis (Ratio analysis)

Overview

Financial Analysis is an essential tool for evaluating a company's performance and making informed investment decisions. This course provides an in-depth understanding of the fundamental financial ratios used in financial analysis. The course begins with an introduction to financial analysis, including the objectives and benefits of conducting such analysis. We will explore the importance of financial ratios, how they are calculated, and the significance of their values. The course will delve into the profitability ratios, which help investors and analysts to evaluate a company's ability to generate profits. We will learn how to calculate and interpret key profitability ratios such as gross profit margin, net profit margin, return on equity, and return on assets.

We will also explore return ratios that measure how well a company utilizes its resources to generate returns for shareholders. We will learn how to calculate and interpret key return ratios such as earnings per share, dividend yield, and price-to-earnings ratio. Liquidity ratios will be covered as well, which are essential for assessing a company's ability to meet its short-term obligations. We will learn how to calculate and interpret key liquidity ratios such as the current ratio and the quick ratio.  Operational analysis will be covered too, which enables investors and analysts to assess the efficiency of a company's operations. We will learn how to calculate and interpret key operational ratios such as asset turnover, inventory turnover, and days sales outstanding.

Furthermore, the course will provide practical techniques for detecting manipulations in financial statements, including identifying common accounting tricks and red flags. We will also explore how financial analysis can assist in making other operational decisions, such as assessing the impact of a new investment project on a company's financial health. Overall, this course is designed to equip students with the knowledge and skills required to perform comprehensive financial analysis using ratio analysis. Whether you're an investor or a financial analyst, this course will provide you with the essential tools to make informed investment decisions.

What Will You Learn?

• Understand the objectives and benefits of financial analysis
• Calculate and interpret key profitability ratios such as gross profit margin, net profit margin, return on equity, and return on assets
• Calculate and interpret key return ratios such as earnings per share, dividend yield, and price-to-earnings ratio
• Calculate and interpret key liquidity ratios such as the current ratio and the quick ratio
• Calculate and interpret key operational ratios such as asset turnover, inventory turnover, and days sales outstanding
• Detect manipulations in financial statements and identify common accounting tricks and red flags
• Evaluate the impact of a new investment project on a company's financial health
• Make informed investment decisions based on comprehensive financial analysis using ratio analysis.

Who Should Take The Course

• Financial analysts seeking to enhance their skills in financial analysis and ratio analysis
• Investment professionals looking to make informed investment decisions based on financial analysis
• Business owners and managers interested in analyzing their company's financial performance
• Accounting and finance students interested in learning about financial analysis and ratio analysis
• Anyone interested in gaining a deeper understanding of financial analysis and making informed investment decisions based on it.

Requirements

• A basic understanding of accounting principles
• Familiarity with financial statements such as the balance sheet, income statement, and cash flow statement
• Basic knowledge of mathematics and statistics
• Access to a computer with a reliable internet connection.