Learn how to understand the value of financial statement ratios.
- In this section, we will discuss how … common external financial reports … are used by those who are standing on the outside … of a company and trying to assess the financial viability … on the inside of a company. … Of course, it would be preferable … if we could just get inside the company … to do our analysis. … But companies do not like outsiders … poking around on the inside of their company. … There's just too much proprietary information … that they do not want exposed to outsiders. … Things like cost structure, pricing margins, … and R and D efforts, to name a few. … We must make do with the information that is available. … Another point to keep in mind … is that the analysis techniques … that we will practice on the external financial statements … can be developed and applied within a firm, … using proprietary firm-specific information. … In other words, we will practice the techniques … on commonly available information … and you can develop unique techniques … within your company for analyzing …
Released
3/5/2019- Determine the parts of an income statement.
- Review the different parts of a statement of cash flows.
- Analyze common-size financial statements.
- Define ratio analysis.
- Explain current ratio.
- Distinguish the steps in the operating cycle.
- Examine how to determine the day’s sales in inventory.
- Explore how to calculate the average collection period.
- Identify the fundamentals of analyzing cash flows.
- Explore business valuation while examining the intersection of accounting and finance.
Skill Level Beginner
Duration
Views
Related Courses
-
Accounting Foundations: Managerial Accounting
with Jim Stice2h 25m Intermediate -
Finance and Accounting Tips
with Jim Stice3h 57m Beginner -
Cost Accounting: Analyzing Product Profitability
with Rudolph Rosenberg56m 49s Intermediate
-
Introduction
-
1. Quick Review of Financial Statements
-
Review of the balance sheet4m 49s
-
2. Analyzing Financial Statements
-
3. Ratio Analysis: DuPont Framework
-
Ratio analysis3m 27s
-
Return on equity2m 26s
-
DuPont framework4m 52s
-
Current ratio4m 12s
-
Debt ratio4m 10s
-
Price-earnings ratio3m 39s
-
4. Ratio Analysis: The Operating Cycle
-
The operating cycle3m 46s
-
Days sales in inventory3m 49s
-
Average collection period3m 31s
-
Days purchases in payable3m 28s
-
Real world: Procter & Gamble3m 21s
-
5. The Statement of Cash Flows
-
Analyzing cash flows2m 22s
-
What does it tells us?4m 21s
-
Cash flow patterns2m 32s
-
One method of analysis4m 37s
-
Two methods for presentation4m 14s
-
6. Forecasting Financial Statements
-
The initial assumptions1m 48s
-
Forecasted retained earnings2m 25s
-
Forecasted assets2m 42s
-
7. Intro to Business Valuation
-
8. Valuation: Using Multiples
-
The Microsoft IPO3m 46s
-
Earnings multiples3m 32s
-
Equity multiples3m 38s
-
Sales multiples4m 23s
-
-
9. Valuation: Free Cash Flows
-
Buying the Hong Kong car?2m 26s
-
Risk and interest rates3m 44s
-
Forecasting cash flows4m 22s
-
-
10. Valuation: Comparing Models
-
Brief McDonald's history2m 53s
-
McDonald's: The numbers2m 41s
-
-
Conclusion
-
Next steps3m 4s
-
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.
CancelTake notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.
Share this video
Embed this video
Video: Ratio analysis