Financial Statement Analysis and Ratios notes
20 notes by 17 users
This GoConqr page gathers more than 10 community-made notes on Financial Statement Analysis and Ratios, from working capital to financial data comparisons. University students and professional candidates can practise interpreting statements and ratios, while school students can revise these topics and teachers can find material for lessons. Choose a note to begin.
Notes
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Ratios Liquidity/Solvency & Operational 1. Financial Statement Ratio Analysis: 2. 4 major purposes/types of measures being analyzed are: 1) Operational Activity&nb...
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Accouting Exam Prep Notes Working Capital:Current Assets - Current LiabilitiesGood Position if: The number is positive. Indicates if there is cash to pay short term debts. Current Ratio: Current Assets Current LiabilitiesGood...
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Ratio Analysis - created from Mind Map Financial Statements Values published are absolute figures Difficult to compare different sized businesses Need to compare Info from a ratio on its own is v.limited Past Periods Similar businesses Objectives/targets T...
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Financial Accounting Exam Review Review : Current and non current assets, examining Review : Current and non current assets, examining Accounts Payable Bank Overdraft CasH Premises Revenue Cost of Sales: Opening Inventory Pur...
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Accounting Ratios - created from Mind Map Profitability/Perfromance RatiosRelation b/w Ratios : net profit margin X asset turnover = ROCE Position/Liquidity Ratios Long Term Financial Position
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EFFICIENCY RATIOS - created from Mind Map INVENTORY TURNOVER=COST OF SALES/AVG INVENTORY INVENTORY DAYS=AVG INVENTORY/ANNUAL COST OF SALES*365 TRADE RECEIVABLE DAYS = AVG TRADE RECEIVABLE/ANNUAL CREDIT SALES*365n exam questions you may have to assume that: (i...
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Financial Statement Analysis Financial Statement Analysis What is Financial Statement Analysis? Looking at quantitative data from: income statement balance sheet cash flow statement Why do we do it? investing opportunities loani...
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LIQUIDITY RATIOS - created from Mind Map CURRENT RATIO= CURRENT ASSET/CURRENT LIABILITIES QUICK RATIO=CURRENT ASSET - INVENTORY/CURRENT LIABILITIES If the current ratio falls below 1 this may indicate problems in meeting obligations as they fall due. BUT In ...
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Untitled ROI = profit margin * ATR (Asset Turnover Rate) ATR = Sales/Total Assets Total Assets = Current Assets + Fixed Asset Current Assets = Inventory + Accounts Receivable + Cash If you increase the ATR, then ATR goes up If...
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Analysis of Company Financial Statements Resource : https://www.youtube.com/watch?v=rjKqVfHF4-Q Analysis of Company Financial Statements Liquidity: the company ability to pay its short term debts. current ratio acid test period debtors collection period cred...
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Untitled Horizontal Analysis1. Calculate the dollar amount of change from the earlier (base) period to the later period2. Divide the dollar amount of change by the base period amount Increase (Decrease) During Year 3 During Ye...
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Enter text here - created from Mind Map Profit Ratios Gross Profit Ratio Net Profit Ratio Return on Capital Employed Mark Up Ratio gross profit / total sales revenue x100 profit + tax / total sales revenue x100 gross profit (b4 interest and tax) / sharehold...
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Ratios - created from Mind Map Gross Profit % Mark Up % Rate of Stock Turnover
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Untitled Notes: Equation A=L+OE(Capital +Profit -Drawing) Accounting Ratios: Profitability -GPM -NPM -Mark-Up -ROCE Liquidity -QR -CR Efficiency -Inventory turnover (times) -Trade payable turnover (days) -Trade rec...
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IA3 Book Value Per Share Computed as: net assets divided by outstanding shares at the end of the year. If there is only one class of outstanding share capital, Total shareholders’ equi...
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Ratios gross profit margin = Gross profit x 100/Revenue operating profit margin = Operating profit x 100/Revenue Profit for the year (net profit) margin = Net profit 100/Revenue Net assets non-current liabilities +...
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A/R Turnover
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Untitled Chapter 4: Ratios Why are ratios useful?Standardize numbers and facilitate comparisonUsed to highlight weaknesses and strengthsComparisons should be made through time (Trend analysis) and with competitors (Peer analysis)
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Ratios Should understand the following ratios: liquidity (current and acid test ratios), profitability (ROCE), financial efficiency (asset turnover, inventory [stock] turnover, payables [creditor] and receivables [debtor] da...
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financial data spec analysing balance sheets analysing income statements using financial data for comparisons, trend analysis and decision making assessing strengths and weaknesses of financial data in judging performance.
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About financial statement analysis and ratios notes
GoConqr OriginalFinancial statement analysis and ratios notes
The notes on this page cover financial statements, working capital and several families of ratios. Financial Statement Analysis brings together liquidity, efficiency, solvency and profitability, while the note on financial data looks at comparisons and trend analysis.
For a broad starting point, read Financial Statement Analysis. Then use the liquidity ratios note to focus on the current and quick ratios, or the efficiency ratios note for inventory turnover and receivables. The exam preparation notes also cover working capital and the current ratio.
Revise with notes
After reading a note, write down the measures it covers and check your list against the resource. Financial Accounting Exam Review includes gross profit margin calculations if you want to look at a worked example. When you want to test recall or see a visual summary, switch to a quiz or mind map on the unit page.
Pick a note and use it to plan your next revision session.
Frequently asked questions
Which note is a useful place to start?
Start with Financial Statement Analysis for a broad view of the material on this page. It covers liquidity, efficiency, solvency and profitability alongside financial statements. You can then choose a more focused note, such as the one on liquidity ratios, to look at particular measures.
Which ratios do the notes cover?
The notes include current and quick ratios, inventory turnover, gross profit margin and other measures. The liquidity and efficiency notes group related formulas together. Financial Accounting Exam Review includes gross profit margin calculations, while the accounting ratios note also covers profitability, liquidity and investor ratios.
Are these notes free to use?
Yes. Every resource listed here is free to open and study without an account. The notes were made by GoConqr users. A free account also lets you save quiz scores and make your own quizzes, mind maps, flashcards and notes.