Course Summary
Learn how to analyze financial statements and make informed decisions using financial ratios. This course covers the basics of financial ratios, including liquidity, solvency, profitability, and market ratios.Key Learning Points
- Understand the basics of financial ratios and how to use them to make informed decisions
- Learn how to analyze financial statements and identify key ratios
- Gain knowledge on liquidity, solvency, profitability, and market ratios
Related Topics for further study
Learning Outcomes
- Understand the importance of financial ratios in decision making
- Identify key ratios and analyze financial statements
- Apply financial ratios to evaluate the performance of a company
Prerequisites or good to have knowledge before taking this course
- Basic knowledge of accounting
- Familiarity with financial statements
Course Difficulty Level
IntermediateCourse Format
- Online Self-paced
- Video Lectures
- Quizzes
Similar Courses
- Financial Statements
- Corporate Finance
- Investments
Related Education Paths
Notable People in This Field
- Warren Buffett
- Suze Orman
Related Books
Description
In the previous two courses, you have learned how to value startups using the discounted cash flow method and multiple methods. However, you have not learned how to estimate cash flows or earnings of startups. In this course, you are going to learn the concepts and usage of financial ratios. Using financial ratios such as profitability, liquidity, leverage, efficiency, and growth, you can tell financial health of a startup. Profitability ratios measure how profitable a firm is by looking at ROS, ROA, and ROE. Liquidity ratios measure how quickly a firm turns assets into cash to pay-off short-term liability and they include Current Ratio, Quick Ratio, and Cash Ratio. Leverage ratios measure how much long-term debt a firm has relative to its assets or equity. Efficiency ratios measure how efficiently a firm utilizes its assets. It is like a physical exam for humans and you can tell the fiscal status of a startup using financial ratios. You can also develop pro forma financial statement using financial ratios. Using pro forma financial statement, you can tell future financial status of a startup as well as cash flows. In addition, using information from pro forma statement and valuation methods, you can do the valuation of a startup.
Outline
- Financial Ratio Analysis
- Welcome Video
- 1.1 Liquidity Ratio
- 1.2 Leverage Ratio
- 1.3 Efficiency Ratio
- 1.4 Profitability Ratio, Market Value Ratio
- 1.5 Financial Ratio Practice
- 1.1 Slide
- 1.2 Slide
- 1.3 Slide
- 1.4 Slide
- 1.5 Slide
- Financial Ratio Summary
- Practice 1.1~1.2
- Practice 1.3~1.4
- Week 1
- Long-term Financial Planning
- 2.1 Simple Financial Planning Model
- 2.2 The Percentage of Sales Approach
- 2.3 Review
- 2.1 Slide
- 2.2 Slide
- 2.3 Slide
- Practice 2.1
- Practice 2.2
- Practice 2.3
- Week 2
- Pro Forma Statements
- 3.1 Pro Forma Statements - Pro Forma Statements
- 3.2 Pro Forma Statements - Free Cash Flow
- 3.3 Pro Forma Statements - EFN and Growth rate Review
- 3.1 Slide
- Samsung Excel Template (3.1-3.2)
- 3.2 Slide
- 3.3 Slide
- Practice 3.1~3.3
- Week 3
- Planning for Growth at Ysom Inc.
- 4.1 Review1 - Pro forma Income Statement
- 4.2 Review2 - Pro forma Balance Sheet
- 4.1 Slide
- 4.2 Slide
- Ysom Inc. Excel Template
Summary of User Reviews
Learn about financial ratios and their importance in making sound investment decisions. This course has received positive reviews for its practical approach to teaching financial ratios.Key Aspect Users Liked About This Course
Many users found the practical and hands-on approach to learning financial ratios to be very helpful.Pros from User Reviews
- Practical approach to learning financial ratios
- Easy-to-understand explanations of complex concepts
- Great for beginners and those with some financial knowledge
Cons from User Reviews
- Some users found the course to be too basic
- Not enough focus on advanced financial ratios
- Lack of interactive elements in the course material
Hyun Han Shin
4.5 Raiting
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