FINANCIAL RATIOS: How to Analyze Financial Statements

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In this short tutorial you’ll learn how Financial Ratio Analysis works. We’ll break Financial Ratios down into their five main groups:

▪ Profitability Ratios
▪ Liquidity Ratios
▪ Efficiency Ratios
▪ Leverage Ratios
▪ Price Ratios

Then I’ll show you how to calculate 25 of the most popular Financial Ratios using the Income Statement and the Balance Sheet. Afterwards, you can jump into my Financial Ratios Playlist to explore each ratio in more detail.

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⏱️TIMESTAMPS
00:00 – Intro
00:28 – FINANCIAL STATEMENTS
01:16 – WHAT IS FINANCIAL RATIO ANALYSIS?
01:56 – What types of Financial Ratio are there?
– Cheat Sheet Bundle: https://accountingstuff.com/shop/financial-ratios-bundle
02:39 – PROFITABILITY RATIOS
– Cheat Sheet: https://accountingstuff.com/shop/profitability-ratios-cheat-sheet
03:47 – Gross Profit Margin (GPM)
04:19 – Operating Profit Margin (OPM)
04:40 – Net Profit Margin (NPM)
05:46 – Return on Assets (ROA)
06:49 – Return on Equity (ROE)
07:37 – Return on Capital Employed (ROCE)
08:11 – LIQUIDITY RATIOS
– Cheat Sheet: https://accountingstuff.com/shop/liquidity-ratios-cheat-sheet
09:10 – Cash Ratio
09:50 – Quick Ratio
10:17 – Current Ratio
10:29 – EFFICIENCY RATIOS
– Cheat Sheet: https://accountingstuff.com/shop/efficiency-ratios-cheat-sheet
11:04 – Inventory Turnover Ratio
11:26 – Receivables Turnover Ratio
11:43 – Asset Turnover Ratio
12:16 – Payables Turnover Ratio
12:40 – Cash Conversion Cycle
13:09 – Days Sales of Inventory
13:43 – Days Sales Outstanding
14:07 – Days Payable Outstanding
14:52 – LEVERAGE RATIOS
– Cheat Sheet: https://accountingstuff.com/shop/leverage-ratios-cheat-sheet
15:19 – Debt to Assets Ratio (DTA)
15:43 – Debt to Equity Ratio (DTE)
16:39 – Interest Coverage Ratio
17:03 – Debt Service Coverage Ratio (DSCR)
17:56 – PRICE RATIOS
– Cheat Sheet: https://accountingstuff.com/shop/price-ratios-cheat-sheet
18:26 – Earnings Per Share (EPS)
19:27 – Price-To-Earnings Ratio (P/E Ratio)
20:19 – Price/Earnings-To-Growth Ratio (PEG Ratio)
21:17 – Dividends Per Share (DPS)
22:04 – Dividend Yield Ratio
22:30 – Dividend Payout Ratio
22:59 – FINANCIAL RATIOS MIND MAP

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DISCLAIMER

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