Financial Analysis: Financial Ratios For Analysts
What you'll learn
- Calculate over 25 different financial ratios to analyze a stock/business
- Calculate and analyze the margin profile of a business
- Return on assets and equity
- Calculate activity ratios (accounts receivable, inventory, accounts payable)
- Assess liquidity and leverage ratios
- Calculate and understand valuation ratios and multiples
- Conduct vertical and horizontal analysis
- Basic understanding of finance or the stock market is helpful, but not 100% required
If you want to be a professional investor, analyst, or CFA, analyzing financials and calculating financial ratios is important.
After being in the finance field at the highest level for nearly 10 years, I can confidently say analyzing financial ratios is the foundation for success.
This course will teach you how to analyze over 25 different financial ratios so you can be prepared at work or managing your own investments.
Here's what you will learn:
Margin analysis (gross margin, operating margin, net margin)
Return on assets and equity (along with the Du Pont Formula)
Activity Ratios (receivable turnover, DSO, inventory turnover, DSI, payable turnover, DPO, cash conversion cycle)
Liquidity and leverage analysis (current ratio, interest coverage, debt/equity, debt/EBITDA)
Dividend analysis (dividend yield and payout)
Valuation (P/E, forward P/E, P/CF, P/B, P/S, EV/EBITDA)
With these financial ratios, you will be able to analyze any stock or business and tell how it is doing right away.
PLUS, the course includes a comprehensive case study that covers all of the financial ratios discussed.
We will look at real financial statements and calculate these financial ratios (just like how the professionals do it).
Finally, the course will have a comprehensive quiz at the end applying everything we have learned.
Who this course is for:
- Students who want to analyze stocks and businesses
- Investors who want to better understand the stocks they own
- Business owners who want to analyze their own businesses
Hi, my name is Andrew. I received my b.s. in accounting and finance. I currently work as an equity research analyst performing financial statement analysis for some of the world's most well-known hedge funds. Financial statement analysis is one of my passions and I'm lucky to do it on a daily basis. My goal is to teach others about the wonderful world of accounting and finance so they can achieve their business goals.