FINANCIAL RATIOS: How to Analyze Financial Statements
ฝัง
- เผยแพร่เมื่อ 30 พ.ค. 2024
- 💥Financial Ratios Cheat Sheets → accountingstuff.com/shop
In this short tutorial you'll learn how Financial Ratio Analysis works. We'll break Financial Ratios down into their five main groups:
▪ Profitability Ratios
▪ Liquidity Ratios
▪ Efficiency Ratios
▪ Leverage Ratios
▪ Price Ratios
Then I'll show you how to calculate 25 of the most popular Financial Ratios using the Income Statement and the Balance Sheet. Afterwards, you can jump into my Financial Ratios Playlist to explore each ratio in more detail.
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:28 - FINANCIAL STATEMENTS
01:16 - WHAT IS FINANCIAL RATIO ANALYSIS?
01:56 - What types of Financial Ratio are there?
- Cheat Sheet Bundle: accountingstuff.com/shop/fina...
02:39 - PROFITABILITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/prof...
03:47 - Gross Profit Margin (GPM)
04:19 - Operating Profit Margin (OPM)
04:40 - Net Profit Margin (NPM)
05:46 - Return on Assets (ROA)
06:49 - Return on Equity (ROE)
07:37 - Return on Capital Employed (ROCE)
08:11 - LIQUIDITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/liqu...
09:10 - Cash Ratio
09:50 - Quick Ratio
10:17 - Current Ratio
10:29 - EFFICIENCY RATIOS
- Cheat Sheet: accountingstuff.com/shop/effi...
11:04 - Inventory Turnover Ratio
11:26 - Receivables Turnover Ratio
11:43 - Asset Turnover Ratio
12:16 - Payables Turnover Ratio
12:40 - Cash Conversion Cycle
13:09 - Days Sales of Inventory
13:43 - Days Sales Outstanding
14:07 - Days Payable Outstanding
14:52 - LEVERAGE RATIOS
- Cheat Sheet: accountingstuff.com/shop/leve...
15:19 - Debt to Assets Ratio (DTA)
15:43 - Debt to Equity Ratio (DTE)
16:39 - Interest Coverage Ratio
17:03 - Debt Service Coverage Ratio (DSCR)
17:56 - PRICE RATIOS
- Cheat Sheet: accountingstuff.com/shop/pric...
18:26 - Earnings Per Share (EPS)
19:27 - Price-To-Earnings Ratio (P/E Ratio)
20:19 - Price/Earnings-To-Growth Ratio (PEG Ratio)
21:17 - Dividends Per Share (DPS)
22:04 - Dividend Yield Ratio
22:30 - Dividend Payout Ratio
22:59 - FINANCIAL RATIOS MIND MAP
🔎FAQ
▪ My Favourite Accounting Book for Beginners → geni.us/5mKR7m
🎬LEARN ACCOUNTING BASICS FOR FREE
▪ The Full Playlist → • ACCOUNTING BASICS for ...
🔝 CLOUD ACCOUNTING SOFTWARE
▪ QuickBooks Online USA (FREE TRIAL/DISCOUNT) → geni.us/jA9N
▪ QuickBooks Online Canada (FREE TRIAL/DISCOUNT) → geni.us/bNN7
▪ Xero (FREE TRIAL) → xeroamericas.grsm.io/ck90eoq1...
🚶FOLLOW ME ON
▪ Instagram → / accountingstuff
▪ TikTok → / accounting_stuff
▪ Facebook → / thisisaccountingstuff
________________________
DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
________________________
#accounting #financialratios #accountingstuff
I hope you know you are basically my accounting 101 professor. My TESU professor just links all your videos in our class materials and it's up to your videos and the book to learn everything. You are doing amazing work and helping me so much!
mine too!
My professors just through a book at us 🙄
@@Missginalovethrew
To achieve greatness, you need to start working with a Financial Advisor. Investing remains the smartest way to prepare for the future.Have been working with ROCHELLE DUNGCA-SCHREIBER for 8years and I'm extremely pleased with the good returns. The good news is, it's never too late to start investing.
Credits to ROCHELLE DUNGCA-SCHREIBER, she saw me through the process. You can glance her name up on your google and verify her yourself. she has years of financial market experience...
I swear, these kind of videos that make me believe that university education is useless, whenever there is Monopoly in any field, the quality always go down, thats the thing about internet, the professor at the university, cannot get fired nor someone else takes his place, unlike in the internet, if you wanna make money, you gotta provide something special.
Glad to hear you found this one useful!
Turnover Ratios are wrong!!! WTF i believed in it. Fuck TH-cam, open books guys!
Your videos are the reason I am passing my Introduction to Financial Accounting course.
I have realized that I learn best by understanding the big picture, and THEN learning the steps which is not the way my textbooks are written, but it is the way you explain the concepts. You're the hero all of us accounting students didn't know we needed. Thank you!
Words cannot express how grateful I am for your course, thank you James
What a great video !! I needed this video since long time and I really wanted to learn this ratios from you .. you got your special way to learn others .. you are really talented ... thanks alot ❤️
I hope you start your costing and budgeting videos that would be great 👌🏻
These videos are so helpful. Would love some more on gearing and gearing ratios!
This is the most comprehensive, complete and concise video available on financial ratios.....it is my go-to video any time I want to revise my concepts.
Thanks, glad you enjoyed it!
I totally agree. Thank you so much @AccountingStuff
thank you so much for this video! i have to memorize around 40 ratios for our midterm exams, and this video helped me tick 26 of them! i love how you grouped the ratios, which made memorizing the formulas a loooot easier, explained what these formulas stand for, their relevance. so happy i came by this vid. it helped me a lot! i've also been sending my classmates this video!
No worries, all the best in your midterms!
I really love your explanation. Your video is amazing. It makes me understand and memorize the lesson quickly. Hope to see your new video soon.
2 years off as an accountant and your videos help me refresh my memory, thank you so much james
Brilliant and Beautiful Financial Control Systems. Thanks for posting!
Really immaculate with your statements. True to the way of accounting stuff. I have to catch up on quite a few videos now!
James! You won’t believe how happy I am to see you ! I had a terrible day and you changed my mood a lot ! Please, please visit us more often! You are amazing 😀 excellent lessons as always.
Thanks Mona, sorry to hear you had a bad day. All the best!
the way explain is awesome. Even many big shot professors are not able to make simplify as you do.
This is by far the best video on financial ratios I have EVER seen.
Splendid work👏👏👏
Thanks!!
Hi James, I recently came across your channel and loved your videos!! Big thank you for making them. Would you please make some videos explaining basic mobth end processes and secondary balance accounting such as BS reclass, funding, cost of carry etc??
Thanks.
This is one of the most useful, crisp video on Fin ratios!
Thanks! Glad you enjoyed it :)
Great videos and has helped me (a non finance guy) understand the concepts much better now. Is it possible for you to share some references or sources too in description that will help us further?
You are needed...this video was needed champ! We might not deserve you but Thank You my boy 💎
love your work man and as an appreciation I purchased all the sheet even though am here only for general knowledge. amazing work that is helping big group of people of different generations/parts of the work ,,, all the best keep it up
Can we share please
Thanks!!! This is a great refresher
Started watching your videos and I am already a fan, please keep up the quality content. 🙏
⬆️
Loved all your accounting videos mr. James. I've moved more into finance and I'm jack to the t its to see you made a video on statements.
No worries, all the best in your new role :)
wow wow wow this video was packed full of it, just got done making falsh cards of these all so i can lopok at them on the go and such. Thanks for the video!
This is good information. Thank you for making it available.
Thanks for the much needed information ❤
Excellent video. You have covered so much in a short video. Well explained and easy to follow and learn. Thank you.
Thanks, glad you enjoyed it!
Thank you for this incredibly understandable video that helped me complete a financial analysis project I first found daunting with ease!
No problem!
Your video taught me more in 25 min, than my high school did in 4 years.
Thanks for the video. You just helped me pass my last financial analysist assignment and provided a great cheat sheets. I am a subscriber.
Congrats on passing your assignment!! All the best
Watching from Zambia and your channel has always been helpful. Thank you and keep up with the excellent content.
Nice one 👍
This is beautiful and simple and wonderful and so well delivered
Cheers David!!
Thank you! Well explaned and easy to understand.
Great to hear you found it useful :)
Thank you very much for creating this fantastic, amazing and formidable video!!!!! Super well explained and organized!!! It is a real treasure! Thanks!!!!
You're very welcome!
Hey James!
I've been watching these accounting videos of yours from a long time now, and I've been really liking them. I want you to make some videos on the following topics (please as a request).
1. Books of original entry
2. Cashbook
3. Adjusted Cashbook
4. Capital & revenue expenses & incomes
5. Receipts
6. Control accounts
7. Source Documents
8. Errors
I am requesting you as I really have understood all the topics only from your videos.
P.S: I have my CAIE's so I really want help.
Thank you! 0:38
⬆️✍️
Omg , I was waiting for this video & your videos are very vivid & easy to understand. Thanks a million for the videos so far. I’m learning & I’m going to apply for jobs ( Assistant accountant, finance intern & accounts payable)
Best of luck in your job hunt!
WOW!!! You are really good at explaining this.
Thanks!
Thank you. My current Business class basically just leaves us to read the chapter and take a test, I couldnt understand until I watched this
This is just AWESOME :) Thank you!
thank your so much mate, you ability to semplify things is nuts
amazingly summarized! thank you!
Thanks, glad you enjoyed it
You are simply the best James, you are good at what you do, Gracias,
⬆️✍️
thank you. you saved my accounting course
Absolutely helpful! Thank you! Please consider making a video on Pro Forma statements 💪🔝🔝
Very well explain and easy to understand it.
I waited soo long for your updates
Please upload frequently it is of great help
⬆️
Hi James,
I learned so many things from your videos. Thank you!
Could you please explain budget and types of budget?
⬆️✍️
amazing video, visualized each concept. lovely.
Thanks, glad you enjoyed it!
You are an amazing Teacher Man. Keep up the good work
Thank you!
I really appreciate you for providing such useful stuff.🙏
You're most welcome :)
Thank you , great one ❤God bless you
Hi James,
I love your videos, they help me so much!.
Please can you make some videos about auditing.?
Thank you very much for this... excellent work
You're very welcome :)
VERY USEFUL VIDEO!!!
Good Morning James,
Thanks for doing this video.
You are welcome
Thanks for the amazing organized contents. While CCC= DSI+DSO- DPO, instead of plus all three of them...
You are correct! Sorry for the typo. I'll pin a comment to show this correction
Thanks for telling. I had the same problem.
Amazing lesson!
Glad you enjoyed it :)
Very informative. Thanks for sharing.
No worries, glad you found it useful :)
Brilliant video! Thanks James :)
⬆️
This video was amazing … Thank you so much.
You're very welcome :)
Thank you so much for this. This was such a big help
No worries, glad I could help :)
thanks a lot man, this was a very useful video
No problem! Glad you enjoyed it :)
Thank you so much for all of your videos. This is better than Becker in my opinion.
was really helpful thanks
Love this!
You’re awesome man, thank you for your videos.
My pleasure!
Amazing how you simplified Ratios in just 25 minutes
I tell my husband name james all the time that im in love with another James, and thats you because, you help me achieve the impossible, a 4.0! And I couldn't be more happy, always in love with two James!, Thank you for everything, forget how helpful your videos are untill a accounting class comes around again❤ one more accounting class to go🎉
Love it! Best of luck in your next class :)
Thanks for the amazing content.
Keep it up
Cheers Mohamed!
Great job! Keep it up .
Thanks!
That is perfect,thanks bro.
Great explanation
Glad it was helpful!
Thank you James. Ure the best. Help me out till i graduate
Great video for finance and accounting students
A topic on intercompany accounting and related party transactions would be really nice
⬆️✍️
Simply outstanding.
Thanks!
Great topic, thank you sir
Glad you enjoyed it :)
This is an awesome video!!!!
Thanks :)
You a professional person who dip him self over long time on financial analysis
Hello,
Thank you for the clear explanations! I had a question about ROA. In the video it is stated simply as the ratio of net income to total average assets. In my textbook, we saw it as ROA = EWI / Average Total Assets, where EWI is: EWI = Net Income + Interest Expense (1 - tax rate). I'm wondering which one is actually used in accounting in companies. Does it differ? Which one would you say is more correct or reliable? Thank you.
This video was so useful
Thank you so much
Best of luck 💎♥️👍
That's great to hear thanks!
Thank you James. It is clear and precise.
Could you make a video on Intercompany accounting and transaction elimination
⬆️
Fabulous the way you taught It is mind blowing and I am dam sure that It will help me allot. THANKU SO MUCH
Thank you ...very informative
Glad it was helpful!
Hi tuned into your channel before covid, incredible contribution and needed. Can you cover cost modelling please
Thanks for your request!
Holy shit batman this is gold. Thank you for this video I was trying to find a TH-cam channel I could understand and many are way too hard to follow what they are saying.
3hrs to exam and am here learning the whole semester, thanks so much this content is wonderful and I just happened to understand, your a good teacher
Best of luck!
Amazing Content with beautiful Slideshow, James! I am wondering which software you use to record the video, specifically the map?? Thank you
Thanks for the nice video.
Kindly clarify - capital employed ignores long term debt or short term debt ?
What I am gonna write is not a new compliment to this on any other video on this channel. However, here it goes.
So, I think this channel needs to be mandatory in schools & teachers are not needed thank you😛
Also, I seriously regret not having TH-cam back then growing up. Its just so easy. You can pause, play, take notes and at the same time look for meanings & clarifications on a certain topic.
You are making lives of students & professionals not just easy but also smart.
Thanks a ton for existing......🥰
Best accounting videos ❤❤❤
Thank You so much ❤
You're very welcome :)
YOU ARE AMAZING!!!!
Exam tomorrow 😅 thanks for the videos really concise and easy to understand. Wish me luck 🍀
All the best I am writing next week
Good luck!!!
This is very helpful.
Glad to hear it!
Fantastic ❤
great video
Thanks!
By the time I reached dividend payout ratio, my brain melted :') But thank you for this, James!
Thanx bro i literally needed to learn this for exam
⬆️✍️