Common Ratios in Financial Analysis- Financial analysts use many ratios while analyzing a company. Since there are many ratios, it become...
COURSE
Financial Analysis Techniques
In this reading we will learn about how an analyst can use the financial reports to perform detailed financial analysis of a company.
A financial analyst uses many tools to perform detailed financial analysis of a company. The most widely used tools are ratio analysis, common size statement analysis, graphical analysis, and regression analysis. In this reading we will focus on calculating and interpreting financial ratios. We will learn about the important financial ratios, analysing the performance of a company using these ratios, and DuPont analysis.
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Study Notes for CFA Level I - Financial Analysis Techniques
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- Inventory turnover is an important activity ratio. Activity ratios measure how effectively a busine...
- Receivables turnover is an important activity ratio, and provides a measure of how effectively a bus...
- Payables turnover is an important activity ratio, and provides a measure of how effectively a busine...
- Working capital turnover ratio reflects how effectively the company is using its working capital. Wo...
- Fixed Asset and Total Asset turnover ratios reflect how effectively the company is using its assets,...
- In the previous articles we learned about the key activity ratios: [Inventory Turnover and Days of I...
- Liquidity is a measure of how quickly a firm is able to convert its assets into cash. While analyzin...
- Cash Conversion Cycle is an important concept in liquidity analysis. The cash conversion cycle indic...
- Solvency ratios measure a business’s ability to meet its obligations in the long-term based on its o...
- Profitability ratios measure how profitable a company is. ### **Gross Profit Margin** . Under this approach, we break...
- Valuation ratios associate stock price to a performance metric. Some of the commonly used valuation...
- ### Financial Ratio Uses - Valuing a company’s stock. - Determining a company’s systemic risk (...
LESSONS
Inventory Turnover and Days of Inventory on Hand (...
Receivables Turnover and Days of Sales Outstanding...
Payables Turnover and Number of Days of Payables
Working Capital Turnover Ratio
Fixed Asset and Total Asset Turnover Ratio
Activity Ratios – Video Summary
Liquidity Ratios (Current Ratio, Quick Ratio, and ...
Cash Conversion Cycle (CCC)
Solvency Ratios
Profitability Ratios
DuPont Analysis
Valuation Ratios
Financial Ratios: Uses and Limitations
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