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Module 1 - Financial Statement Analysis
Module 1 - Financial Statement Analysis
Module 1 - Financial Statement Analysis
Module:
Financial Statement Analysis
Ratios Analysis
Common-size Financial
Statements
1. Financial Ratio
Analysis
2. Common-size
Financial
Statements
2016 Copyright Kalpesh Ashar
Ratio Analysis
Ratios are calculated by
taking values from Balance
Sheet, Income Statement, and
Cash Flow Statement
Categories of Ratios:
Profitability ratios
Liquidity ratios
Asset Management ratios
Leverage (Debt Management)
ratios
Cash Flow2016 ratios
Copyright Kalpesh Ashar
Profitability Ratios
Return on Equity (ROE)
Net Income
-------------------------------
Stockholders Equity
Return on Sales (ROS)
Net Income
-------------------
Sales
Return on Assets (ROA)
Net Income
-------------------
Total
2016 Copyright Kalpesh Assets
Ashar
Liquidity Ratios
Debt-to-Equity Ratio
Total Liabilities
------------------------------
Stockholders Equity
2016 Copyright Kalpesh Ashar
Cash Flow Ratios
Cash Flow to Net Income Ratio
Cash from Operating Activities
--------------------------------------------
Net Income
Cash Times Interest Earned Ratio
Current
Assets
&
Liabilities
Increased !