Financial Statement Analysis: Accounting Ratios & Analytical Strategy

This accounting course provides an overview of the purpose and objectives of financial statement analysis. We explore the theoretical concepts of financial information analysis and reporting and show you how to implement these accounting practices to make decisions and reach your objectives. We guide you through the technical elements of accounting ratio analysis and discuss the concept of value and how it is defined in terms of a business model.

This course is designed to help you develop an understanding of accounting ratios used in different situations and for different decision-making purposes. These skills enable you to develop an analytical strategy that takes account of the business model of a company under review and the needs of the users of this information. The course explains how to employ ratio analysis to make smart financial decisions.

We show you how to calculate accounting ratios such as Return on Capital Employed (ROCE), Asset Turnover Ratio and Inventory Turnover Ratio to understand classes of ratios such as activity ratios, liquidity ratios and investor ratios. We also explore working capital concepts and calculations, including the working capital cycle, debtor days, creditor days and inventory days. Enrol in this accounting course to master financial statement analysis and learn how to employ ratio analysis to improve your company’s financial management, planning and decision-making.