1. Course Content

1. Understanding the Language

i. Insolvency
ii. Fixed & Variable Costs and Cost Functions
iii. Dividends
iv. Net Working Capital
v. Marketable Securities
vi. Debt
vii. Stakeholders
viii. Managerial Efficiency (ME)
ix. Fundamental Analysis

2. Introduction to Ratios

i. Ratios – Comparative Analysis
ii. The many faces of ratio analysis

3. Liquidity, Leverage, Profitability and Productivity

i. Liquidity
ii. Leverage
iii. Productivity
iv. Profitability

CASE STUDY 1 – OFFICE DEPOT

1. Overview
2. Financial Condition Review
3. Ratios – Quick Reviews

• Leverage Ratios
• Productivity or Turnover Ratios
• Profitability Ratios

4. Industry review and a first look at ratios

i. Industry Analysis
ii. Liquidity Ratios
iii. Leverage Ratios
iv. Productivity Ratios
v. Profitability Ratios

CASE STUDY 2 – STAPLES & OFFICE DEPOT: COMPARATIVE RATIO ANALYSIS

1. Staples – Overview
2. Financial Condition Review
3. Liquidity Ratios – Comparison

i. Current Ratio
ii. Quick Ratio

4. Leverage Ratios

i. Debt to Equity Ratio
ii. Debt to Total Assets
iii. Times Interest Earned (Coverage) Ratio
iv. Fixed Charge Coverage Ratio
v. Productivity Ratios

5. Profitability Ratios

i. Gross Profit Margin
ii. Operating Profit Margin
iii. Net Profit Margin
iv. Return on Assets (ROA)
v. Return on Equity (ROE)
vi. Basic Earning Power Ratio

Conclusion

EXCEL Examples

No

2. Introduction

Ratios define relationships between two variables. A financial ratio is computed by dividing the dollar amount of one item reported in a financial statement by the dollar amount of another. The purpose of ratio analysis is to express relationships between two variables so that they are easy for analysts to interpret and compare with other information available.

3. Buy this course

To buy this or any other course, check out the finance course store.