How 8 Financial Ratios Can Allow You to Analyse Any Business

How to use ratios to conduct a deeper financial analysis
Rating: 3.9 out of 5 (72 ratings)
2,518 students
How 8 Financial Ratios Can Allow You to Analyse Any Business
Rating: 3.9 out of 5 (72 ratings)
2,518 students
An introduction to financial analysis by ratios
Understand what is a balance sheet
Understand what is an income statement
Touch the importance of liquidity for the business and the ratios used to analyze it
Ability to differentiate between effectiveness and efficiency
Ability to determine the profitability of the business
To have an arsenal of ratios to use, such as Profit Margin Ratio, Gross Profit Margin Ratio, Accounts Receivable Turnover Ratio
Being able to look behind the numbers

Requirements

  • A minimum of knowledge in finance will be a plus
  • Accountants, like many professions, like to make their skills seem more complicated than what they really are; after all, this allows them to charge higher fees.
  • ANY business manager, investor or student can quickly learn some key techniques
Description

For any individual wishing to discover finance, at some point he will be led to know or learn the financial analysis,no matter the reason, being a banker or business owner to an investor managing his stock portfolio and aiming to buy the most profitable stocks, perhaps inspired by the greatest Warrant Buffet.

I have to ask the question, Is a lack of accounting training holding you back from getting value from these important financial documents?

The financial statements, these being the Income Statement, Balance Sheet & Cash Flow Statement, allow you to tell the ‘story’ of a business. You can tell its history, its strengths and weaknesses and sometimes even its future. Financial numbers alone will not tell you everything about a business.

The statements tell a concise story that can be used by investors and managers to test and assess strategy, as well as assist in putting together action plans in regards to whether or not to buy, hold or sell a stock or what to do internally within the business. But being able to look behind the numbers and gleam this story takes some skill.

However, not lots of skill! Accountants, like many professions, like to make their skills seem more complicated than what they really are; after all, this allows them to charge higher fees.

But ANY business manager, investor or student can quickly learn some key techniques that will allow them to tell the story of almost any business on the planet.

Accountants have the ability to turn vast amounts of data into actionable information, but they tend to give their own names to this ‘actionable information’ and in effect create a language of their own. And if this is all foreign to you: firstly, congratulations on taking the first steps, you won’t regret it. Secondly, in this courseI will try to clearly, simply and concisely break down this ‘foreign language’ and its arithmetic tools into something more digestible, irrespective of whether you’re a marketer, barista, production manager or even a retiree managing their nest egg.

this course has several objectives, all in the way of giving the learner an arsenal of tools allowing him to conduct a complete financial analysis, with effectiveness and above all efficiency.

efficiency is the key to success, being efficient means being able to reach the goal in the minimum amount of time with the minimum of used resources , here are the ratios.

the ratios which by their simplicity make it possible to manipulate the financial analysis and to create a model of analysis that suits the user according to his objective.

If you are looking to identify the company with the most profitable stocks in terms of dividends, you only have to mobilize these small tools called ratios in a certain way and here is in a moment you identify the most profitable stocks.

again if you want to know if your business is solvent, you only have to use the ratios again and you will have the information you want.


Who this course is for:
  • Any curious person
Course content
4 sections • 9 lectures • 53m total length
  • Introduction
    03:31
  • Current Ratio
    06:50
  • Acid-Test Ratio
    05:13
  • Cash Ratio
    04:37
  • Inventory Turn Over Ratio
    06:50
  • Accounts Receivable Turnover Ratio
    07:15
  • Profit Margin Ratio
    07:09
  • The Gross Profit Margin Ratio
    07:38
  • Return On Equity Ratio
    04:56

Instructor
Administrateur Public
Nakhoul Mohamed
  • 3.9 Instructor Rating
  • 181 Reviews
  • 3,160 Students
  • 4 Courses

I am Nakhoul Mohamed, teaching In Udemy is the logical consequence of what I feel, my passion for finance, as I learned and still learn, by practice!!

I have a Master's degree in Accounting, Management Control and Audit, (recognized under the acronym CCA in French-speaking countries), I also have a very good teaching experience.

I teach several subjects in the same discipline, (Finance), whether online or in class, I site among others:

- General Accounting

- Internal audit

- Accounting and financial audit

- Financial analysis

- Financial management

- Financial strategy

- Company Accounting

- Corporate Finance

- Management control

...

I am also passionate about E-commerce, with several experiences in this direction, four successful shops until this moment, I also love everything that is related to personal development, and I  appreciate the people who want always learn new things.