This week’s topics
Financial Performance and Ratio Analysis
- Profitability ratios including ROCE and operating margin
- Liquidity ratios including current and acid test
- Efficiency ratios including inventory turnover
- Gearing and leverage metrics
- FINANCIAL RATIOS: How to Analyze Financial Statements
- Financial ratio analysis
- Activity Ratios (Efficiency Ratios) | Financial Statement Analysis
What you will be able to do
- 4.1 Analyse the financial performance of a business from information drawn from financial statements.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: analyse the financial performance of a business from information drawn from financial statements.
Study materials
Videos
- FINANCIAL RATIOS: How to Analyze Financial Statements · YouTube · Accounting Stuff · 24 min · for registered students
- Financial ratio analysis · YouTube · The Finance Storyteller · 10 min · for registered students
- Activity Ratios (Efficiency Ratios) | Financial Statement Analysis · YouTube · Edspira · 7 min · for registered students
Further resources
- Introduction to Financial Accounting, Lyryx 2023-A, ch. 12: Financial Statement Analysis · PDF · Other, textbook chapter; pp. 489–532 · for registered students
- Principles of Finance 2e, ch. 6: Measures of Financial Health · PDF · OpenStax, textbook chapter; pp. 175–200 · for registered students
- Introduction to Business 2e, ch. 14.7: Analysing financial statements · PDF · OpenStax, textbook chapter; pp. 492–495 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.