Corporate Finance #2 Financial Ratios

Compute profit margin percent by comparing net income to revenue across divisions, using ratio analysis on the income statement, and interpret how rounding and volume affect decisions.

Explore how to calculate return on investment by linking capital investment, net income, revenue, and profit margin to estimate ROI and compare across projects.

Compute return on assets by linking net income, total assets, and profit margin through total asset turnover, practicing algebra to back into components.

Work through a OneNote practice problem on return on assets, total asset turnover, and profit margin, using assets of $8,410,000, asset turnover 3.4, and a 14 percent return on investment.

Compute profit margin from two-year income statements and compare year-over-year, analyzing revenue, cost of goods sold, and net income to explain margin changes.

Analyze expense to sales ratios on the income statement, comparing cost of goods sold, selling and admin, and interest expenses as percentages of sales, using vertical analysis across two years.

Work through a OneNote practice problem calculating return on assets, return on equity, and asset turnover. Derive sales and profit margin from net income using the accounting equation.

Practice problem shows calculating total asset turnover and return on equity, linking these with gross profit margin and return on assets, and using debt to total assets to derive equity.

Work through a practice problem to calculate total asset turnover, profit margin, and return on equity using the provided sales and liabilities data.

Practice calculating the average accounts receivable collection period from credit sales and accounts receivable, using daily credit sales and turnover methods, with 60 days as the estimated result.

Calculate turnover ratios across two years, including accounts receivable turnover, inventory turnover, fixed asset turnover, and total asset turnover. Analyze how sales and asset levels affect these ratios.

Practice calculating liquidity and efficiency ratios from a corporate finance problem in one note, including current ratio, quick ratio, debt to assets, asset turnover, and accounts receivable collection period.

Demonstrate times interest earned and fixed charge coverage by calculating income before interest and taxes and fixed charges from the income statement.

Analyze asset turnover and return on equity trend analysis across years using income statement and balance sheet data, including OneNote practice contexts, with insights on ROA, ROE, and industry standards.

analyze asset turnover and debt to asset ratios across multiple years, calculate roa, and compare trends to industry benchmarks to assess efficiency and leverage.

Reverse the balance sheet with ratios to reconstruct current assets, using current ratio, inventory turnover, and average collection period to derive cash, accounts receivable, and inventory.

learn to back into a balance sheet from ratios using OneNote and Excel's goal seek, solving for cash, inventory, receivables, fixed assets, and debt to assets while noting rounding.

Apply ratio analysis to derive account balances from given data using asset turnover, current ratio, debt-to-asset, and receivable turnover to populate accounts like accounts receivable, current assets, and total assets.

Explore comprehensive ratio analysis using a balance sheet and income statement to calculate profitability, asset utilization, liquidity, and debt ratios, with emphasis on ROA, ROE, turnover, and leverage.

Perform a comprehensive ratio analysis of two companies, comparing profitability, asset utilization, liquidity, and debt ratios using balance sheet and income statement data for Company A and Company B.

Explore how to calculate and interpret profit margin percent in Excel by dividing net income by sales, formatting as a percent, and benchmarking ratios across companies.

Learn to compute return on investment (ROI) in Excel by linking the initial investment to projected revenue and profit margin, deriving net income, and interpreting ROI for decision making.

Explore calculating return on assets, total asset turnover, and profit margin in Excel, then back into net income and initial investment to assess return on investment.

Tackle an Excel-based problem to calculate return on investment, total asset turnover, and profit margin, and explore how these ratios relate and back into sales and assets.

Compute and compare two-year profit margins from an income statement in Excel, showing how year one and year two margins relate to net income, sales, and tax considerations.

Practice expense-to-sales ratio analysis in Excel using two-year income statements, calculating COGS to sales, selling and admin to sales, and interest to sales, then interpreting fixed versus variable costs.

Practice calculating return on assets, return on equity, and asset turnover in Excel, using net income, sales, and assets with average asset concepts and Goal Seek to verify results.

Learn to compute total asset turnover and return on equity in Excel using gross profit margin and return on assets. Examine the relationships among assets, liabilities, and equity.

Practice calculating total asset turnover, return on stockholders equity, and profit margin in Excel using what-if analysis and goal seek.

Compare two companies in Excel using return on equity, return on assets, net income to sales, and asset turnover to evaluate profitability and leverage.

Learn to calculate the average accounts receivable collection period, or days outstanding, using credit sales and accounts receivable turnover in Excel, and compare 360 and 365 day conventions.

Compute and compare accounts receivable, inventory, fixed asset, and total asset turnover ratios across two years using Excel, aligning sales and asset data for insights.

Practice Excel-based calculation of key financial ratios—current ratio, quick ratio, debt to total assets, asset turnover, average daily credit sales, and average collection period—using balance sheet and income statement data.

Explore calculating times interest earned and fixed charge coverage in Excel using income before interest and taxes and fixed charges, with tax effects and selling and admin fixed costs.

Analyze asset turnover and return on equity across multiple periods in Excel, applying trend analysis to track changes in net income, total assets, and stockholders’ equity.

Practice asset turnover and debt-to-asset analysis in Excel, comparing multiple periods to prior performance and industry standards. Learn ROA as net income divided by total assets, and assess leverage.

Explore how to calculate net profit margin and return on assets for company divisions in Excel, comparing subsidiaries to evaluate performance and asset efficiency.

Leverage Excel to back into current assets from ratios, deriving cash, accounts receivable, and inventory using the current ratio, inventory turnover, and average collection period.

Use ratios to create a balance sheet in Excel, solving for unknowns via algebra or goal seek, exploring reverse deconstruction of financial statements with asset turnover and current ratio.

Learn to back into account balances from ratios in an Excel practice problem, using asset turnover, current ratio, debt to assets, and accounts receivable turnover with algebra and goal seek.

This lecture presents a comprehensive ratio analysis in Excel, deriving profitability, liquidity, asset and debt utilization ratios from balance sheet and income statement.

Practice comprehensive ratio analysis in Excel by comparing two companies' balance sheets and income statements to compute profitability, asset utilization, liquidity, and debt ratios.

Continue a comprehensive ratio analysis of two companies, A and B, comparing profitability, asset utilization, liquidity, and debt ratios in Excel.