Duration: 3 hours
Lectures: 22
Video: 3 hours
Level: Intermediate

Archive

Ratio analysis is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis

All Startup founders and business owners, executives must get a basic understanding of finance and accounting to enable themselves to be able to read financial statements, analyze results, and the impact of their business decisions.

This course was recorded during a live class with startup founders who do not have any formal background in accounting and finance. Course contents, speed, and explanations are designed keeping in mind those users, hence other users may find it slow and sometimes repetitive. I repeated few things just to make my audience understand and absorb concepts.

This Class is a Second day of five day series topics discussion in the course includes

Analyzing financial numbers for making business decisions

A. Analyzing Financial Statements in Details.

B. Ratio Analysis

a. Why Ratio – Usefulness and Limitations

b. Profitability Ratio

c. Liquidity Ratios

d. Working Capital

e. Asset Utilization

f. Return Ratios

g. Special Purpose

C. How to use Ratio analysis to understand ground reality in operations.

D. How operational decisions affect financial results.

E. Working Capital Management

F. Pricing Decisions

G. Capital Expenditure planning decisions

H. Using Financial Analytics Metrics for KPI management

I. Using financial numbers together with operational metrics

Please let me know if you feel any topic is missed.

What you’ll learn

  • Ratio Analysis
  • How operational decisions affect ratio
  • how different business models affect ratios
  • how to interpret various ratios to understand business performance

Are there any course requirements or prerequisites?

  • My previous course on Fundamentals of Accounting for Small Business and Startups

Who this course is for:

  • Startup Founder and Co Founders
  • Business Operation Executives

Introduction

1
Financial Statement Analysis Objectives
2
Financial Analysis Methods in Brief
3
Ratio Analysis

Profitability

1
Gross Profit
2
Net Profit
3
ClassRoom Discussion for some other expenses
4
Use of Profitability Ratio to understand Copetitive advantage and business model

Return Ratio

1
Return on Assets and FIxed Assets
2
Return on Capital Employed
3
Case Study Analysis of three telecom companies
4
Cautions for using return ratios on face value
5
Ratios which help to understand how efficiently assets are used
6
How we measure utlisation of assets not recorded in Balance Sheet

Liquidity Ratio

1
Liquidity Ratio to understand Risk inherent in companies
2
Long Term Liquidity Ratios

Operational Analysis

1
Financial Analysis Measure meant to understand efficiency in other operations
2
Summarise – Ratios use for operational analysis
3
Dupont Analysis to understand opportunities in optimising return on equity

Detecting Manipulations and Make other operation decisions

1
Detecting Manipulation in accounts – Fake Sales
2
Detecting Manipulation – Wrong Depreciation and others
3
Pricing Decisions
4
How to make Capex Decisions
No announcements at this moment.

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