Financial Ratios

Financial Ratios

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So, you can just about understand your accountant’s explanation of what your “profit margin” means – but do you start to feel bewildered when they talk about the “debt-to-equity ratio” of your business? It’s easy to get lost in the numbers, but if you’re a manager in any business, you need to learn how common financial ratios are applied to gain insights from the financial reports and annual statements that land on your desk.

This course will explain 7 of the most important financial ratios, and what they tell you about the performance of your business. Equipped with these analytical tools, you’ll be able to derive crucial information by examining your financial records – and when you start to make sense of the numbers, you can make better business decisions.

By the end of this course, you’ll be able to:

• Demonstrate the equations for 7 common financial ratios
• Evaluate your corporate financial statements by applying financial ratios
• Describe the implications of key financial ratios regarding the financial health of a business

Why take this course?

As a first-time manager or experienced manager, understanding the financial reports and corporate financial statements your business or department generates is essential to making informed and sensible financial choices. This course illustrates how to apply key financial ratios to the raw data in order to ascertain the financial health of a business, helping you identify areas in need of improvement.

15 mins | SCORM | Workbook
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