Financial Ratios Training
Financial ratios offer a way to get a broader understanding of what a company’s financial statements are saying. Ratios indicate the relationship of one number to another. The power of ratios lies in the fact that the numbers in the financial statements by themselves may not reveal the whole story. Ratios offer points of comparison and thus tell you more than the raw numbers alone.
There are four categories of ratios that managers and other stakeholders in a business typically use to analyze the company’s performance:
- Profitability ratios help you evaluate a company’s ability to generate profits
- Leverage ratios let you see how – and how extensively – a company uses debt
- Liquidity ratios tell you about a company’s ability to meet all its financial obligations – not just debt but payroll, payments to vendors, taxes, and so on
- Efficiency ratios help you evaluate how efficiently you manage certain key balance sheet assets and liabilities.
People use many different financial ratios in assessing a business. Our financial statements training classes go through ratios in each category and analyze how a company is performing. Get a clearer picture of what your company is doing and what story your financials are telling. Sign up for our online training program or contact us for a live training.