Overview

What Does Ratio Analysis Tell You?Investors and analysts employ ratio analysis to evaluate the financial health of companies by scrutinizing past and current financial statements. Comparative data can demonstrate how a company is performing over time and can be used to estimate likely future performance. This data can also compare a company's financial standing with industry averages while measuring how a company stacks up against others within the same sector.This course is a very comprehensive review of the Financial Statement analysis. The course covers the subtopics such as Horizontal and Vertical analysis; Liquidity Ratios; Leverage Ratios; Profitability Ratios; Market Ratios and Profitability analysis including ROI and ROA. We will take a statement of cash flows and analyze cash flows from operating, financing and investmentWhat Is Ratio Analysis?Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis.KEY TAKEAWAYSRatio analysis compares line-item data from a company's financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency.Ratio analysis can mark how a company is performing over time, while comparing a company to another within the same industry or sector.While ratios offer useful insight into a company, they should be paired with other metrics, to obtain a broader picture of a company's financial health.

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