Financial Performance and Ratio Analysis

Overview

What financial ratios tell you

The research of underlying accounting principles used in compiling financial statements and the assessment of profitability and efficiency all call for qualitative data analysis. Learn to recognise, interpret, and analyse financial statements using important financial ratios. Understand how liquidity ratios, gearing/capital structure ratios, and cash flow ratios allow the users of financial statements to inform an organisation's position and help the stakeholder to make a more informed decision.

Acquire new skills to demonstrate your proficiency:

• Purpose of financial statement analysis
• Frameworks for analysis
• Common efficiency / activity ratios
• Common profitability ratios
• Common liquidity ratios
• Common gearing and capital structure ratios
• Common cash flow ratios

Gain practical experience

Use genuine examples such as case studies and scenarios designed to give you the skills to evaluate business performance and get a deeper understanding of ways to improve the business performance and align with organisation goals. Financial statement analysis can assist the decision-making process by focussing on the key indicators to remain a long-term, viable going concern.

This is a standalone course but if you're interested in more of this type of learning while earning a designation, explore the CGMAr Finance Leadership Program.

Highlights

Key Topics

• Introduction to financial statement analysis
• Profitability ratios
• Efficiency and activity ratios
• Liquidity ratios
• Gearing and capital structure ratios
• Cash flow ratios

Prerequisites

None

Designed For

Who Will Benefit

• Global accounting and finance professionals
• Management accounting professionals
• Controllers
• CFOs
• Finance vice presidents
• Finance directors
• CPAs and CAs

Objectives

Learning Outcomes

• Recognise the purpose and methods of financial statement analysis, including ratio analysis.
• Analyse relevant profitability ratios for an organisation.
• Analyse relevant efficiency and activity ratios for an organisation.
• Analyse relevant liquidity ratios for an organisation.
• Analyse relevant gearing/capital structure ratios for an organisation.
• Analyse relevant cash flow ratios for an organisation.