FM - Ratio Analysis

Activity / Turnover Ratios (Asset, Capital, Working Capital, Inventory, Receivables & Payables Turnover)

Activity / turnover / efficiency ratios (total asset, fixed asset turnover)

Application of Ratio Analysis in Financial Decision Making

Capital Structure / Solvency Ratios

Capital structure ratios (long-term solvency / leverage)

Classification / types of accounting ratios

Coverage Ratios

Coverage Ratios (Interest, Preference Dividend, Equity Dividend, Fixed Charges Coverage)

Coverage ratios (DSCR, interest coverage, preference dividend coverage, fixed charges coverage)

Du Pont Analysis

Limitations of Financial Ratios

Liquidity Ratios

Liquidity ratios (short-term solvency): current, quick, cash, basic defense interval, net working capital

Overall Return Ratios (Owner's Perspective)

Profitability Ratios Based on Sales

Profitability Ratios based on Sales (Gross Profit, Net Profit, Operating Profit, Expenses Ratios)

Profitability Ratios — Return on Investment (ROI, ROA, ROCE)

Standard format of financial statements for ratio analysis (Balance Sheet & retained earnings)

Turnover / Activity / Performance Ratios

Types of Financial Analysis — Horizontal vs Vertical

Users and Objectives of Financial Statement Analysis