## Description

**Learn tools to analyze financial statements, including vertical analysis, horizontal analysis, and ratio analysis.**

**This course will provide resources such as downloadable PDF files and preformatted Excel spreadsheet to help understand and apply the concepts.**

**We will list and describe the tools for financial statement analysis, including vertical analysis, horizontal analysis, and ratio analysis.**

**Below is more detail about the concepts we will learn.**

**This course will help us understand, calculate, and analyze horizontal analysis. Horizontal analysis is used to compare financial data and performance of a company across time and is a common and intuitive form of analysis.**

**We will explain, calculate, and analyze vertical analysis. Vertical analysis also termed common size financial statements, displays all items as percentages of a common base figure instead of absolute numbers. Vertical analysis is very useful to compare financial statements for companies of different sizes.**

**The course will list and describe the categories of ratio analysis. Ratio analysis is a common form of financial statement analysis used to obtain a quick indication of a business’s financial performance in different areas. Ratios are often grouped into categories, including liquidity ratios, solvency ratios, profitability ratios, and market prospects ratios.**

**We will describe liquidity and efficiency ratios. We will list liquidity and efficiency ratios, perform calculations, and analyze their use.**

**The course will examine solvency ratios, listing solvency ratios, calculating solvency ratios, and analyzing their use.**

**We will Explain profitability ratios. The course will list profitability ratios. We will perform calculations and analysis of profitability ratios.**

**We will discuss market prospects ratios, listing out the market prospect ratios, discussing the formulas, and analyzing the use of market prospect ratios.**

**The course will calculate and analyze current ratios, acid-test ration, and accounts receivable ratios.**

**We will analyze and compute inventory turnover ratios, days’ sales uncollected, days’ sales in inventory, and total asset turnover.**

**The course will discuss and calculate the debt ratios, equity ratios, debt-to-equity ratios, and times interest earned.**

**We will explain and compute the profit margin ratio, gross margin ratio, and return on total assets.**

**The course will describe and calculate return on equity, book value per common share, and earnings per share.**

**We will calculate and analyze price earnings ratio and dividend yield.**

**The course will discuss and analyze the components of a financial statement analysis report. We will explain what software can do for us and what software cannot do.**

## What you’ll learn

- List and describe the tools for financial statement analysis
- Understand, calculate, and analyze horizontal analysis
- Explain, calculate and analyze vertical analysis
- List and describe the categories of ratio analysis
- Describe liquidity ratios
- Examine solvency ratios
- Explain profitability ratios
- Discuss market prospects ratios
- Calculate and analyze current ratio, acid-test ration, and accounts receivable ratio
- Analyze and compute inventory turnover ratio, days’ sales uncollected, days’ sales in inventory, and total asset turnover
- Discuss and calculate debt ratio, equity ratio, debt-to-equity ratio, and times interest earned
- Explain and compute profit margin ratio, gross margin ratio, and return on total assets
- Describe and calculate return on equity, book value per common share, and earnings per share
- Calculate and analyze price earnings ratio and dividend yield
- Discuss and analyze the components of a financial statement analysis report

## Requirements

Understanding of basic accounting terms

## Who this course is for:

- Accounting students
- Business owners & professionals
- Anyone who whats to learn accounting