# Corporate Finance 2 Financial Ratios

Learn financial ratios from a corporate finance perspective from a Certified Public Accountant (CPA) 4.5/5

## Corporate Finance 2 Financial Ratios

### What you’ll learn

Know how to use financial ratios to help make decisions from a corporate finance perspective
Explain the Dupont System of Analysis
Calculate and interpret profit margin percent
Calculate and understand return on investment (ROI)
Calculate and explain total asset turnover
Calculate and interpret expense to sales ratio
Calculate and understand return on assets and return on equity
Calculate and explain average accounts receivable collection period
Calculate and understand times interest earned and fixed charge coverage
Explain return on equity trend analysis
Use ratio analysis to compare divisions of an organization
Project financial statements using ratio analysis ### Requirements

There is introductory material we have included in a prior course that is recommended but not required

### Description

We will learn how to use ratio analysis to help with decision making from a corporate finance perspective. The financial statements, including the balance sheet and income statement, are the primary tools used for ratio analysis. The financial statements help us understand past performance and where the organization stands at this time. Ratio analysis helps us project future performance and where the organization may stand in the future. This course will demonstrate concepts using many practice problems, including problems using Microsoft Excel. Each Microsoft Excel problem will include a downloadable worksheet with at least two tabs, one being the answer key, the other being a preformatted worksheet that can be used to work the problem in a step-by-step format along with instructional videos.Learners will know what ratio analysis is. They will understand the DuPont System of analysis.We will demonstrate the concept of return on investment (ROI) and apply it to many scenarios.The course will demonstrate return on asset, total asset turnover, & profit margin calculations.We will discuss return on equity and debt to equity ratios and how they can be used.Learners will understand how to calculate the accounts receivable collection period.We will also cover times interest earned and fixed charge coverage calculations.The course will demonstrate return on equity trend analysis.We will show how ratio analysis can be used to compare different divisions of an organization.Learners will be able to use ratio analysis to project performance in the future, constructing a projected income statement and balance sheet.

### Overview

Section 1: Introduction

Lecture 1 Financial Ratios

Lecture 2 315 DuPont System of Analysis

Section 2: Practice Probs – Financial Ratios

Lecture 3 OneNote Resource

Lecture 4 311 Profit Margin Percent

Lecture 5 312 Return on Investment (ROI)

Lecture 6 313 Return on Assets, Total Asset Turnover, & Profit Margin

Lecture 7 314 Return on Investment, Total Asset Turnover, & Profit Margin

Lecture 8 315 Profit Margin Two Years Comparison & Income Statement

Lecture 9 317 Expense to Sales Ratios

Lecture 10 318 Return on Assets, Return on Equity, & Asset Turnover

Lecture 11 325 Total Asset Turnover & Return on Equity-More Complex Relationships

Lecture 12 326 Total Asset Turnover, Return on Equity, & Profit Margin

Lecture 13 327 Return on Equity & Other Ratios Two Company Comparison

Lecture 14 328 Average AR Collection Period

Lecture 15 331 Turnover Ratios Two Year Comparison

Lecture 16 332 Multiple Ratio Calculations

Lecture 17 333 Times Interest Earned & Fixed Charge Coverage

Lecture 18 337 Asset Turnover & Return on Equity Trend Analysis

Lecture 19 338 Asset Turnover & Debt to Asset Compared to Industry

Lecture 20 339 Net Profit Margin & ROA Division Comparison

Lecture 21 342 Ratios to Create Current Assets Portion of Balance Sheet

Lecture 22 343 Use Ratios to Create a Balance Sheet

Lecture 23 344 Use Ratios to Create Account Balances

Lecture 24 346 Comprehensive Ratio Analysis

Lecture 25 347 P1 Comprehensive Ratio – Two Companies Part 1

Lecture 26 347 P2 Comprehensive Ratio – Two Companies Part 2

Section 3: Excel Probs – Financial Ratios

Lecture 27 311 Profit Margin Percent

Lecture 28 312 Return on Investment (ROI)

Lecture 29 313 Return on Assets, Total Asset Turnover, & Profit Margin

Lecture 30 314 Return on Investment, Total Asset Turnover, & Profit Margin

Lecture 31 315 Profit Margin Two Years Comparison & Income Statement

Lecture 32 317 Expense to Sales Ratios

Lecture 33 318 Return on Assets, Return on Equity, & Asset Turnover

Lecture 34 325 Total Asset Turnover & Return on Equity-More Complex Relationships

Lecture 35 326 Total Asset Turnover, Return on Equity, & Profit Margin

Lecture 36 327 Return on Equity & Other Ratios Two Company Comparison

Lecture 37 328 Average AR Collection Period

Lecture 38 331 Turnover Ratios Two Year Comparison

Lecture 39 332 Multiple Ratio Calculations

Lecture 40 333 Times Interest Earned & Fixed Charge Coverage

Lecture 41 337 Asset Turnover & Return on Equity Trend Analysis

Lecture 42 338 Asset Turnover & Debt to Asset Compared to Industry

Lecture 43 339 Net Profit Margin & ROA Division Comparison

Lecture 44 342 Ratios to Create Current Assets Portion of Balance Sheet

Lecture 45 343 Use Ratios to Create a Balance Sheet

Lecture 46 344 Use Ratios to Create Account Balances

Lecture 47 346 Comprehensive Ratio Analysis # 1

Lecture 48 347 P1 Comprehensive Ratio – Two Companies

Lecture 49 347 P2 Comprehensive Ratio – Two Companies Part 2