208 pages [76 self-teaching + 132 self-quizzes with detailed answers]
Section 1: How to use ratios. Measure a firm’s financial health. Where to find the numbers to use for ratios.
Section 2: Can the firm pay its short-term obligations? Find out with the current and quick (“acid test”) ratios.
Section 3: Measure liquidity (ability to turn assets into cash). Measure the quality of your company’s A/R and collection efforts and foresee problems in future sales, pricing or inventory with the inventory-turnover and A/R-turnover ratios.
Section 4: Rate a firm’s efficiency. See if sales are providing sufficient return on your company’s investment in fixed assets with the sales-to-fixed-assets ratio. Evaluate your company from one period to another period using the profit-margin ratio.
Section 5: Debt management. Predict when losses will start to hurt your company’s credit rating with the total-liabilities-to-total-assets ratio. Forecast long-term solvency and when the company must stop borrowing with the times-interest-earned ratio.
Section 6: Evaluating return on investment. Uncover the true return on investment with the return-on-investment ratio. Assess return to stockholders with the return-on-stockholders’ equity ratio.
Section 7: More tools for evaluating company performance. Learn how to compare financial statement items year to year and how to evaluate key sections of the income statement and balance sheet.
Section 8: Company v. industry performance. Where to find standards of comparison and industry norms to see how your company is doing.
Section 9: Stock market ratios. Easily measure any stock’s performance the way the pros do. Master the earnings-per-share ratio . . . price-earnings ratio . . . dividend-payout ratio.
The course provides knowledge beyond Income Statement and Balance Sheet. It provides a tool in finalizing the accounts by doing an analyses of income statement and balance sheet of two or more periods and bringing to fore probable future financial problems that a company may face. The course also provides knowledge why a successful company may be facing working capital problems, may be more riskier and allows one to do investment analysis etc.
Info a little confusing
Great. Very interesting subjects. Subjects that I never knew of when I went to college. Easy to understand.
clear and easy to follow
This was an excellent review for me.
I learned a great deal from this book about the Balance Sheet and Income Statement accounts in a more in depth scope. I also learned about some of the trends to look for when determining the financial condition of a company and how to calculate some of the financial ratios.
The material of this course is excellent.
Clear examples, good coverage, would recommend.
Great book and course.
A good review course.