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Ratio Analysis - Profitability
 
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Profitability ratios look at the returns earned by a business both in terms of its trading activities (sales revenue) and also how much is invested in earning those returns (capital employed). This revision video introduces the four main profitability ratios.
Views: 68103 tutor2u
Financial Statement Analysis #2: Ratio Analysis - Liquidity (Short Term Solvency)
 
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http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this financial statement analysis tutorial we are covering liquidity measures or short term solvency ratios. Here you will learn about the current ratio, the quick ratio (acid test) and the cash ratio. Short-term solvency measures are used to determine whether or not a company would be able to pay off its short-term liabilities if they were to come due within the near future. Please don't forget to subscribe, rate and share our videos. Please also visit our website at http://www.subjectmoney.com and http://www.excelfornoobs.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=G8v9hF0k3gI
Views: 68243 Subjectmoney
Ratio Analysis. Liquidity ratios, solvency ratios, profitability ratios.
 
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I have discussed about liquidity, profitability, solvency and and activity ratios in this video
Views: 23861 Amjad Niaz
Finance: Liquidity Ratios Explained
 
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Learn more about liquidity ratios here on the tutor2u website: https://www.tutor2u.net/business/reference?q=liquidity+ratio In this short revision video, Jim Riley from tutor2u Business introduces the concept of liquidity ratios and explains how to calculate and interpret the two main ratios: the current ratio and acid-test ratio.
Views: 106984 tutor2u
Liquidity Ratio Analysis | Financial Accounting | CPA Exam FAR | Ch 15 P 4
 
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Current ratio, ratio analysis. liquidity ratio, profitability ratio, market ratio, liquidity ratio, solvency ratio, market prospects ratio, working capital, trend analysis, common-size financial statements, acid test ratio, account receivable turnover, inventory turnover, asset turnover, gross profit, debt ratio, equity ratio, times interest earned, dividend yield. pe ratio, financial statement analysis, vertical analysis, horizontal analysis,
Basic ratios for profitability, liquidity and efficiency
 
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This screncast demonstrates the calculation of eight basic ratios for assessing an entity's financial performance.
Views: 1847 Luke Fannon
Liquidity Ratios & Solvency Ratios - Explained in Hindi (2018)
 
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Liquidity ratios & solvency ratios meaning explained in hindi. What is liquidity, solvency, insolvency? Liquidity risk and solvency risk should be analyzed for any company or individual. For a company, we analyse liquidity ratios - current ratio, quick ratio, cash ratio and solvency ratios - debt ratio, debt to equity ratio, interest coverage ratio, debt service coverage ratio (dscr) etc. Related Videos: Current Ratio: https://youtu.be/STR_aUzAxpI Quick Ratio: https://youtu.be/QdPzteTZ1Dk Cash Ratio : https://youtu.be/-G5Pco2xnBk Current Assets & Current Liabilities: https://youtu.be/6_ZPGktZIts Assets, Liabilities & Equity: https://youtu.be/4BhpDCAL62M लिक्विडिटी रेश्यो और सॉल्वेंसी रेश्यो का मतलब इस वीडियो में हिंदी में समझाया गया है। लिक्विडिटी, सॉल्वेंसी, इन्सॉल्वेंसी क्या है? किसी भी कंपनी या व्यक्ति के लिए लिक्विडिटी रिस्क और साल्वेंसी रिस्क का एनालिसिस किया जाना चाहिए। कंपनी के लिए, हम लिक्विडिटी रेश्यो का विश्लेषण करते हैं - करंट रेश्यो, क्विक रेश्यो, कैश रेश्यो, और सॉल्वेंसी रेश्यो - डेब्ट रेश्यो, डेब्ट टू इक्विटी रेश्यो, इंटरेस्ट कवरेज रेश्यो, डेब्ट सर्विस कवरेज रेश्यो (dscr) आदि। Share this Video: https://youtu.be/ZMSW9BYb_Yo Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What are the liquidity ratios and solvency ratios? What is the meaning of liquidity risk and solvency risk? How to analyze the liquidity risk and solvency risk for any company or individual? What is the meaning of insolvent company? What is the differences between liquidity, solvency, and insolvency? How to know if a company or individual is bankrupt? What is the formula for liquidity ratio calculation and solvency ratio calculation? Analyzing liquidity ratios and solvency ratios of a company can help us to understand the risks of bankruptcy. Liquidity ratios such as current ratio, quick ratio, cash ratio help us to understand the liquidity risk status and solvency ratios such as debt ratio, debt service coverage ratio (dscr), interest coverage ratio can be helpful to analyze the solvency risks. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Twitter - http://twitter.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Facebook – https://www.facebook.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Liquidity Ratios & Solvency Ratios”.
Views: 13483 Asset Yogi
Profitability Vs Liquidity
 
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Learn more here - http://bit.ly/2PMnDv3 I groom entrepreneurs on how to structure their business so they maximize the businesses financial potential. I want you to experience not only FINANCIAL FREEDOM but TRUE FREEDOM TO LIVE LIFE THE WAY IT WAS INTENDED. My christian worldview affects my business philosophies and teachings. The way to build wealth that transcends generations is to first build character based on biblical principles. Short term wealth is easy, I can run a great marketing campaign and gain short term wealth. But what is the long term value in that if I lack the character to manage it. I focus on building systems to sustain long term growth. With my natural love for numbers and my God given gift of recognizing patterns, I aim to use numbers to create information that will stir the entrepreneur into a profitable path. I am looking forward to talking to you, and developing a winning strategy to get you where you want to go! Call me at (417) 812-5945
3 Minutes! Financial Ratios and Financial Ratio Analysis Explained (Quick Overview)
 
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OMG wow! So easy clicked here http://mbabullshit.com/ for Financial Ratio Analysis Explained Financial Ratio Analysis Explained in 3 minutes Sometimes it's not enough to simply say a company is in "good or bad" health... To make it easier to compare a company's health with other companies, we have to put numbers on this health, so that we can compare these numbers with the numbers of other companies... So now... how do we use numbers to assess company health? http://www.youtube.com/watch?v=TZZFBkbC2lA This is where Financial Ratios come in... Very common types of financial ratios are Liquidity Ratios, Profitability Ratios, and Leverage Ratios. Liquidity Ratios can tell us how easily a company can pay its debts... so that the company doesn't get eaten up by banks or other creditors. An example of this is the Current Ratio... This tells us how much of your company's stuff can be easily changed into cash within the next 12 months so that it can pay debts which need to be paid also within 12 months. The higher your current ratio is, the less risky a situation your company is in. Now moving on... Profitability Ratios can tell us how good a company is at making money. An example of this is the Profit Margin Ratio. This tells us how much profit your company earns compared to your company's sales. Normally, a higher number is better; because you want to earn more profit for every $1 of sales that you get. And finally, what about Leverage Ratios? These can tell us how much debt the company is using to make the company run and stay alive. An example of this is the simple Debt Ratio. This tells us how much % of a company's assets are paid for by debt. Normally, a company is considered "safer" when the debt ratio is low. Note that this was just a very simple overview. There are a lot more financial ratios & many different ways of using them; plus a lot of problems and disadvantages in using them as well. Would you like to SUPER easily learn more about many financial ratios with even deeper analysis & detail? Check out my FREE videos at MBAbullshit.com See ya there!
Views: 1263950 MBAbullshitDotCom
it;s only 9 minutes - Meaning Types of ratio and advantages
 
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Want to compare or find a trend you need to understand Financial Ratios. Financial ratio analysis is a useful tool for users of financial statement. The video beautifully explains what is the meaning of the ratio, various advantages of using a ratio and highlighting different types of ratios - L - Liquidity ratio S- Solvency ratio P - Profitability ratio A- Activity ratio (Please do share your feedback).
Views: 116154 financeschoolin
Profitability ratio analysis
 
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A brief introduction into three basic profitability ratios: 1. Gross Profit Ratio 2. Net Profit Ratio 3. Rate of Return on Equity Ratio More videos, tasks, quizzes, handouts and other resources can be found at https://meyerflippedlearning.com/#!/home
Views: 13811 Bernd Meyer
Liquidity Ratios, CFA L1 (Financial Statements)
 
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Liquidity is a short-term issue (I like to think of liquidity as -running out of time.- A liquidity problem per se is one that time can fix). Liquidity ratios measure a firm's ability to meet its short-term obligations; or measure how quickly assets are converted into cash. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 18306 Bionic Turtle
Introduction to Profitability, Liquidity and Turnover Ratios Cl XII AC by Dr  Balbir Singh
 
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For the first time in INDIA, textbook in Economics, Accountancy & Business Studies with FREE Video Lectures by Eminent Authors/Subject Expert. To buy books visit www.goyal-books.com To view FREE Video Lectures visit www.goyalsOnline.com/commerce About the Book » Written strictly according to the latest syllabus prescribed by the CB.S.E., New Delhi. » Up-to-date study material provided by using the latest available data. » Elaborate explanation of the concepts. » Summary (Points to Remember) given at the end of each Chapter. » Numerical Problems from previous years' question papers incorporated and solved in the respective Chapters. » Methodology of solving typical numerical problems given wherever necessary. » Methodology of drawing typical diagrams given wherever necessary. » Comprehensive Exercises given at the end of each Chapter. » Sample Question Paper given at the end of the book. » Multi-disciplinay Problems given at the end of the books. » Video lectures on each topic with replies to queries for better and clear understanding of the concepts by the Author/Subject Matter Expert. Benefits of Video Lectures » Easy to access anytime: With video lectures, students can learn anywhere from their mobile devices: desktops, laptops, tablets or smartphones. » Students learn when they are primed to learn. » Students can pause, rewind and replay the lecture. » Eases the distraction of having to transcribe the lectures. » Self-paced learning: Students can follow along with the lecture at their own pace, going more slowly or quickly » Bookmarking: Students can bookmark the point where they're up to in the video so they can easily return and continue watching the lecture at a later point. » Searchability: Students can easily search through the lecture to find the required sub-topic they need, without having to rewind and fast forward throughout the video. » Greater accuracy: Students will understand the lecture better and can make sure that they have not misheard anything. » Facilitates thinking and problem solving: It improves research skills, collaborative working, problem solving, technology and organisational skills.
Profitability Ratio Analysis: Financial Ratio Analysis Explained
 
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Profitability Ratio Analysis: Financial Ratio Analysis Explained Support AccoFina's Patreon if you are a Fan or Believer in my work, https://patreon.com/accofina Time Markers: 1) The Profit Margin 1:17 2) The Gross Profit Margin 5:47 3) The Return on Assets 14:28 4) The Return on Equity 21:47 5) Different ways to conduct ratio analysis 27:56 6) Key ideas with all ratio analysis 29:06 1) THE PROFIT MARGIN Tells us how much profit is generated from sales. Percentage of sales revenue that ends up as profit Good indicator of cost control and/or pricing power. Profit Margin Formula: Profit Margin = Net Income / Sales Revenue Example Where do we find the Required Inputs? Net Income: From the Income Statement Sales Revenue: From the Income Statement How to Interpret Changes in the Ratio: Expenses have changed in relation to sales... * Management is effective with cost control * Economies of scale are being utilised. Sales Revenue has changed in relation to expenses... * Change in pricing power (bargaining position with consumers) * Change in state of the economy and aggregate demand 2) THE GROSS PROFIT MARGIN (Very important for resellers and manufacturers) Profit between cost of inventory and sales price. How much sales revenue left to cover profit and all other expenses. Gross Profit Margin Formula: Gross Profit Margin = (Sales Revenue - Cost of Goods Sold) / Sales Revenue Where do we find the Required Inputs? Sales Revenue: From the Income Statement Cost of Goods Sold: From the Income Statement How to Interpret Changes in the Ratio: Sales Revenue has changed in relation to cost of goods sold... * Change in pricing power (bargaining position with consumers) * Change in product or aggregate demand (without a flow through the supply chain yet) * Market competitive position and pressures Cost of Goods Sold has changed in relation to sales revenue... * Power within the supply chain * Change in supplier or production efficiency Changes in prices of particular commodity inputs 3) RETURN ON ASSETS Return generated by the assets for those who funded the assets. Insight into success of management in income generating asset allocation and utilisation. Return on Assets Formula: Return on Assets = (Income beforeTax + Interest Expense) / ((Assets at Start of Period + Assets at End of Period) / 2) Where do we find the Required Inputs? Income before Tax: From the Income Statement Interest Expense: From the Income Statement Assets at Start of Period: From the Previous Balance Sheet Assets at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of assets... * Management is getting ‘more from less’ in regards to assets * Management has made good asset allocation decisions in terms of revenue * Management has good control of costs in relation to expenses Previously mentioned reasons: e.g. economy, market power, competitive position Level of assets have changed in relation to profitability... * Assets may have suddenly increased through large, recent * CapEx Assets may not be being replaced or replenished at the same rate * Particular choice of depreciation/amortisation policies 4) RETURN ON EQUITY Return generated for the owners of the business, the common stockholders. Insight into success of any leverage used (when comparing to return on assets). Return on Equity Formula: Return on Equity = (Net Income - Preference Dividends) / ((Common Stockholder Equity at Start of Period + Common Stockholder Equity at End of Period) / 2) Where do we find the Required Inputs? Net Income: From the Income Statement Preference Dividends: From the Income Statement or Investor Relations Equity at Start of Period: From the Previous Balance Sheet Equity at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of common stockholder equity... * Management performance is changing in the eyes of, and on behalf of, the owners/employers * Previously mentioned reasons: e.g. economy, market power, competitive position, cost control, asset utilisation Common Stockholder Equity has changed in relation to profitability... * The level of liabilities have changed (and thus equity) * A stock issue or stock buyback (i.e. equity levels have changed) Subscribe to the Channel: https://goo.gl/84Sfeg Or just check out the Channel Page: https://goo.gl/yTj9Bs Most Popular YouTube Video: https://goo.gl/Jbv685 Latest YouTube Upload: https://goo.gl/wDM83Y 1) Website http://www.accofina.com 2) Amazon Author Page: http://www.amazon.com/author/axeltracy 3) Udemy Instructor Page https://www.udemy.com/u/axeltracy/ 4) Twitter http://www.twitter.com/accofina 5) Google+ http://plus.google.com/+accofina 6) Instagram https://www.instagram.com/axel_accofina/ 7) Facebook Page https://www.facebook.com/AccoFina.Page #Accounting #FinancialEducation #FundamentalAnalysis
Views: 51391 AccoFina
#1 Ratio Analysis [Liquidity & Activity Ratios] ~ Concept behind formation of a Formula
 
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#RatioAnalysis #LiquidityRatios #ActivityRatios Described the concept, reason and logic behind formation of different formulas of analysis of financial statements. I have discussed the core concept of contents used in the following formulas: Current Ratio, Quick Ratio, Fixed Assets Turnover Ratio, Current Assets Turnover Ratio and Working Capital Turnover Ratio, Further discussed concept of Current Assets, Quick Assets so that student need not to remember formula to solve any question Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 110534 CA. Naresh Aggarwal
Understanding Liquidity Ratios
 
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This BeeBusinessBee video focuses on the topic of liquidity ratios. It looks that the concept of conducting ratio analysis from a set of financial accounts, specifically what would be required if you were being asked to assess the liquidity of an organisation? This video forms part of a series of videos on this topic and has been designed with questions that will test your knowledge and understanding. It is important to remember to pause the video when you reach a series of questions. Remember that additional resources and materials can be found online at; www.beebusinessbee.co.uk
Views: 4312 Bee Business Bee
ratio analysis of financial statements in hindi| liquidity ratios| solvency ratios| leverage ratio
 
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In this video we have discussed ratio analysis of financial statements in hindi.We have discussed the categorization of different ratios and their types such as liquidity ratio : Current ratio and quick ratio, leverage ratio, debt equity ratio, debt service coverage ratio, return on capital employed roce, return on assets, return on equity etc. If Found our video helpful to you anyway, Then don't forget to like the video. Kindly Subscribe our channel for to get the notification for our latest videos Subscribe Link : https://goo.gl/M51wPX -----Like ------ Share -------- Comment ------- Subscribe -------------------------- Follow us on Facebook : https://www.facebook.com/bankingsutra/ Follow us on Twitter : https://twitter.com/banking_sutra Follow us on Google plus : https://plus.google.com/108611863544253921936 Follow us on Whatsapp : +918336937153
Views: 40829 BANKING SUTRA
CMA بالعربي - Part2 - Sec. A Financial Analysis - Liquidity Ratios (3)
 
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CMA بالعربي - Part2 - Sec. A Financial Analysis (2) Facebook:- https://www.facebook.com/CMAEducation
Views: 22762 CMAEducation
Ratio Analysis: Liquidity Ratios (Part - 1)
 
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What is liquidity?
Views: 109 Rakesh Kabra
Liquidity Analysis Case Study 1
 
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Install our android app CARAJACLASSES to view lectures direct in your mobile - https://bit.ly/2S1oPM6 Join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, Banking Credit Analysis Process with 240+ Lectures, 17+ hours content available at discounted price (10% off)with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2wcpBMk Enrollment Link For Students From India: https://www.instamojo.com/caraja/banking-credit-analysis-process/?discount=inybcap68 Our website link : https://www.carajaclasses.com ---------------------------------------------------------------------------------------------------------------- BEST FOR CREDIT ANALYSIS THIS IS BEST LECTURE EXPLAINED IN SIMPLE METHOD WITH EXAMPLES FOR CREDIT PROFESSIONAL.Also it would def help on the job purpose as well.Would def recommend ------------------------------------------------------------------------------------------------------------------ Credit Analysis is the core process adopted by any Bank to understand, evaluate and appreciate about the Customers Identity, Integrity, Financial Position, - Repayment Capacity, Etc. Every Banker should be through with Credit Analysis Process because day in day out they have to deal with new customers and before sanctioning any new loans to them, Banker should have made detailed study of their customers. No Banker can raise to top unless he becomes conversant with Credit Analysis Process. Bank would generally throw employees on to the job before they get opportunity to be trained. This is with more specific reference to Credit Analysis where Bankers should under detailed learning process, else their mistakes in the process will be Very Costly beyond their manageable Position. Hence, this course will provide platform to Bankers to have fall back reference on the Critical Aspects of Credit Analysis Process, Banking/ Management Consultants can also use this course for the equipping themselves to the expectations of the Bankers while handling Credit Proposals. This Course has been Structured in self paced Learning Style. Learners can Learn Credit Analysis process at their own time, Convenience and place. Materials used in this Course will enable the participants to understand credit Analysis Process with almost Clarity. • Category: Business What's in the Course? 1. Over 171 lectures and 11 hours of content! 2. By taking this Course you will Understand, What is Credit Analysis 3. By taking this Course you will Understand, What is Working Capital Cycle 4. By taking this Course you will Understand, What is Project Financing 5. By taking this Course you will Understand, Detailed Process of Credit Analysis Course Requirements: 1. No prior knowledge is required for taking this course. 2. Students need PC / Laptop / Tab / Mobile (supporting Android / iOS) to view this course Who Should Attend? 1. Bankers 2. Consultants(Management/Banking/Finance) 3. Finance Managers 4. Entrepreneurs looking for Raising Funds 5. Department Heads 6. Chartered Accountants
Views: 5034 CARAJACLASSES
Bailout 1: Liquidity vs. Solvency
 
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Review of balance sheets. Difference between illiquidity and insolvency. More free lessons at: http://www.khanacademy.org/video?v=ZUEjRYe7MRk
Views: 206913 Khan Academy
Liquidity and Solvency Ratios
 
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In this video I show you a spreadsheet with Financial Statements and we calculate and discuss financial ratios. This is from my course on Udemy called Startups: A Guide to Entrepreneurship. In the course you can download the spreadsheet in order to get better insight into the calculations and how financial statements interconnect and flow. Horizontal and Vertical Analysis Horizontal analysis compares financial information over time, typically from past financial statements such as the income statement. When comparing this past information we look for variations of particular line items such as higher or lower earnings, sales revenues, or particular expenses. Horizontal analysis is used to look for trends that can be extrapolated in order to predict future performance. Vertical analysis is a proportional analysis performed on financial statements. It is ratio analysis. Line items of interest on the financial statement are listed as a percentage of another line item. For example, on an income statement each line item will be listed as a percentage of Sales. Financial Ratios Financial ratios are powerful tools used to assess company upside, downside, and risk. There are four main categories of ratios: liquidity ratios, profitability ratios, activity ratios and leverage ratios. These are typically analyzed over time and across competitors in an industry. Using ratios “normalizes” the numbers so you can compare companies in apples-to-apples terms. Liquidity and Solvency Solvency and liquidity are both refer to a company’s financial health and viability. Solvency refers to an enterprise's capacity to meet its long-term financial commitments. Liquidity refers to an enterprise’s ability to pay short-term obligations. Liquidity is also a measure of how quickly assets can be sold to raise cash. A solvent company is one that owns more than it owes. It has a positive net worth and is carrying a manageable debt load. A company with adequate liquidity may have enough cash available to pay its bills, but may still be heading for financial disaster down the road. In this case a company meets liquidity standards but is not solvent. Healthy companies are both solvent and possess adequate liquidity. Liquidity ratios are used to determine whether a company has enough current asset capacity to pay its bills and meet its obligations in the foreseeable future (current liabilities). Solvency ratios are a measure of how quickly a company can turn its assets into cash if it experiences financial difficulties or is threatened with bankruptcy. Both measure different aspects of if, and how long, a company can pay its bills and remain in business. The current ratio and the quick ratio are two common liquidity ratios. The current ratio is current assets/current liabilities and measures how much liquidity (cash) is available to address current liabilities (bills and other obligations). The quick ratio is (current assets – inventories) / current liabilities. The quick ratio measures a company’s ability to meet its short-term obligations based on its most liquid assets, and therefore excludes inventories from its current assets. It is also known as the “acid-test ratio.” The solvency ratio is used to examine the ability of a business to meet its long-term obligations. Lenders and bankers most commonly use the solvency ratio because they are most concerned about their ability to get paid back any money they lend. The ratio compares cash flows to liabilities. The solvency ratio calculation involves the following steps: All non-cash expenses are added back to after-tax net income. This approximates the amount of cash flow generated by the business. You can find the numbers to add back in the Operations section of the Cash Flow Statement. Add together all short-term and long-term obligations. This is the Total Liabilities number on the Balance Sheet. Then divide the estimated cash flow figure by the liabilities total. The formula for the ratio is: (Net after-tax income + Non-cash expenses)/(Short-term liabilities + Long-term liabilities) A higher percentage indicates an increased ability to support the liabilities of a business over the long-term. Acceptable solvency ratios vary from industry to industry, but as a general rule of thumb, a solvency ratio of greater than 20% is considered financially healthy. Remember that estimations made over a long term are inherently inaccurate. There are many variables that can impact the ability to pay over the long term. Using any ratio to estimate solvency needs to be taken with a grain of salt.
Views: 448 MBA ASAP
Financial Ratio Analysis | Introduction to Corporate Finance | CPA Exam BEC | CMA Exam | Chp 3 p 3
 
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nother way of avoiding the problems involved in comparing companies of different sizes is to calculate and compare financial ratios. Such ratios are ways of comparing and investigating the relationships between different pieces of financial information. Using ratios eliminates the size problem because the size effectively divides out. We’re then left with percentages, multiples, or time periods. There is a problem in discussing financial ratios. Because a ratio is simply one number divided by another, and because there are so many accounting numbers out there, we could examine a huge number of possible ratios. Everybody has a favorite. We will restrict ourselves to a representative sampling. In this section, we only want to introduce you to some commonly used financial ratios. These are not necessarily the ones we think are the best. In fact, some of them may strike you as illogical or not as useful as some alternatives. If they do, don’t be concerned. As a financial analyst, you can always decide how to compute your own ratios. One of the best known and most widely used ratios is the current ratio. As you might guess, the current ratio is defined as follows: Current assets divided by current liabilities. Inventory is often the least liquid current asset. It’s also the one for which the book values are least reliable as measures of market value because the quality of the inventory isn’t considered. Some of the inventory may later turn out to be damaged, obsolete, or lost. More to the point, relatively large inventories are often a sign of short-term trouble. The firm may have overestimated sales and overbought or overproduced as a result. In this case, the firm may have a substantial portion of its liquidity tied up in slow-moving inventory. To further evaluate liquidity, the quick, or acid-test, ratio is computed just like the current ratio, except inventory is omitted. LONG-TERM SOLVENCY MEASURES Long-term solvency ratios are intended to address the firm’s long-term ability to meet its obligations, or, more generally, its financial leverage. These are sometimes called financial leverage ratios or just leverage ratios. The total debt ratio takes into account all debts of all maturities to all creditors.
Ratio Analysis, Financial Ratio Analysis in Excel
 
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For details, visit: http://www.financewalk.com Ratio Analysis, Financial Ratio Analysis in Excel Financial Ratio Analysis Meaning- " The process of calculating the relationships between various pairs of financial statement values for the purpose of assessing a company's financial condition or performance is called ratio analysis." Users of Financial Analysis Financial Analysis can be undertaken by management of the firm, or by parties outside the firm like owners, creditors, investors and others. The nature of analysis will differ depending on the purpose of the analyst. • Trade creditors- are interested in firm's ability to meet their claims over a very short period of time. Their analysis will, therefore, confine to the evaluation of the firm's liquidity position. • Suppliers of long term debt- on the other hand, are concerned with the firm's long-term solvency and survival. They analyse the firm's profitability over time, its ability to generate cash to be able to pay interest and repay principal and the relationship between various sources of funds i.e. capital structure relationships. Long-term creditors do analyse the historical financial statements, but they place more emphasis on the firm's projected, or pro forma, financial statements to make analysis about its future solvency and profitability. • Investors -- who have invested their money in the firm's shares, are most concerned about the firm's earnings. They restore more confidence in those firms that show steady growth in earnings. As such, they concentrate on the analysis of the firm's present and future profitability. They are also interested in the firm's financial structure to the extent it influences the firm's earnings ability and risk. • Management - of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most effectively and efficiently, and that the firm's financial condition is sound.
Views: 102636 Avadhut Nigudkar
CMA Exam: Liquidity & Solvency Ratios for CMAs (Wiley CMAexcel Free Lesson)
 
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In this free video lecture from the Wiley CMAexcel CMA Review Course, Dallon Christensen, CMA, CPA/CIPTA, discusses how investors use ratios to make decisions about the health of a business. This video goes into detail about how liquidity and solvency ratios are easier to chart and graph over time, revealing trends to inform decisions. A separate lesson is dedicated to profitability ratios. For more, register for a free 14-day trial of Wiley CMAexcel http://ow.ly/KrMp3
Views: 10361 Wiley
Liquidity Ratios
 
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Introduction to Managerial Finance: Liquidity Ratios
Views: 7786 LearningSims
Liquidity Ratios
 
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In this video we will highlight how to use liquidity ratios in excel.
Views: 4789 InLecture
Liquidity Analysis
 
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This video walks through the calculations for four liquidity ratios for MBA 601.
Views: 477 srauterkus
Liquidity Vs  Solvency
 
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ACC 501 Week 7
Views: 1036 jbrownin1
Financial Ratio Analysis| (Liquidity Ratios)
 
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#financialratios #financialratioanalysis #liquidityratios
MBA 1.2 Financial Management - Liquidity, Profitability, Efficiency, Performance, Stock
 
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Financial analysis of any company from its annual reports The annual reports are used to analyse the company’s Liquidity, Profitability, Efficiency, Capital Structure and Stock Market Performance 1. LIQUIDITY: The high level of working capital is likely to improve a company’s liquidity and avoid running out of the cash. 1.1 Current Ratio The company’s current ratio would be very high if it is under trading and over capitalized. Current ratio = Current Assets / Current Liabilities 1.2 Acid Test or Quick Ratio This ratio indicates a company’s short term debt paying ability. Acid Test or Quick Ratio = (Current Assets-Inventories) / Current Liabilities 1.3 Working Capital Turnover However if it is significantly higher then there could be a liquidity problem and company might be over trading with insufficient working capital. If it is much lower, it indicates poor use of the working capital resources and shows company’s inefficient working capital management. WC Turnover = Sales / Net Current Assets 2. PROFITABILITY: Profitability reveals how successfully the business is trading 2.1 Return on Capital Employed (ROCE) ROCE = Operating profit / (Equity + Noncurrent liabilities) x 100 2.2 Return on Equity (ROE) or Return on Investment (ROI) ROE = Profit after tax / Equity x 100 2.3 Gross Profit Margin Gross Profit Margin = Gross profit / Sales Revenue x 100 2.4 Operating Profit Margin Operating Profit Margin = Operating profit / Sales Revenue x 100 2.5 Net Profit Margin Net Profit Margin = Profit after tax / Sales Revenue x 100 3. EFFICIENCY It is a good measure to see how well working capital is being managed. 3.1 Inventory Turnover Ratio (Higher the better) Inventory Turnover Ratio = Cost of sales / Inventories 3.2 Receivable Turnover Ratio (Higher the better) Receivables Turnover Ratio = Sales Revenue / Trade Receivable 3.3 Payable Turnover Ratio (Lower the better) Payables Turnover Ratio = Cost of purchase or sales / Trade Payable 3.4 Asset Turnover Ratio (Higher the better) Asset Turnover Ratio = Sales Revenue / (Fixed Assets + Net Current Assets) 3.5 Inventory days (Lower the better) Inventory Days = 365 x Inventories / Cost of sales 3.6 Receivable days (Lower the better). Receivable Days = 365 x Trade Receivable / Sales Revenue 3.7 Payable days (Higher the better) Payable Days = 365 x Trade Payable / Cost of purchase or sales 3.8 Cash operating cycle (Cash Conversion Cycle) (Shorter the better) Cash operating cycle = Inventory days + Receivable days - Payable day 4. CAPITAL STRUCTURE Gearing can be used to magnify the company sale. 4.1 Gearing ratio Gearing ratio = Noncurrent liabilities / (Equity + Noncurrent liabilities) x 100 4.2 Debt to Equity ratio There will be more risk to shareholders if this ratio is higher than 50% and 10% ratio is considered to be low risky. Debt to Equity Ratio = Noncurrent liabilities (Debt) / Equity x 100 4.3 Interest cover ratio More risk to shareholders if this ratio is very low as company can default on its interest payments. Interest cover ratio = Operating profit / Finance charge 5. STOCK MARKET PERFORMANCE These ratios are used by existing and potential investors who are deciding whether to hold, sell or buy shares in the company. 5.1 Earnings per Share (EPS) Indicates how much profit is generated for shareholders for each share in issue. Shown at the end of the Income Statement 5.2 Price to Earnings ratio High Price to Earnings ratio indicates that investors are prepared to pay a very high price.. Price to Earnings ratio (P/E) = Market value per share / Earnings per share 5.3 Dividend Yield ratio Dividend Yield is the return to the shareholders ignoring any change in the share price over an accounting period. Dividend Yield Ratio = Dividend per share / Market value per share x 100 5.4 Dividend Payout ratio If payout ratio is low, more money is being retained & reinvested for the future growth. Dividend Payout ratio = Dividend per share / Earnings per share x 100 5.5 Dividend Cover The higher the dividend cover the lower the risk that future dividends will fall below the current dividend level. Dividend Cover = Earnings per share / Dividend per share
Views: 240 VMB
Financial Ratios -- Liquidity, Asset Management and Debt Management
 
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This video walks through the calculation and interpretation of the current, quick, inventory turnover, days sales outstanding, fixed asset turnover, total asset turnover, total debt to total asset, times interest earned and cash coverage ratios.
Views: 124054 Kevin Bracker
Introduction to Liquidity Ratios (Tamil)
 
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Did you liked this video lecture? Then please check out the complete course related to this lecture, available at discounted (only 640/-) price with life time validity and certificate of completion. https://www.udemy.com/financial-management-in-tamil/?couponCode=YTBFMT12 Welcome to this course " Financial Management in Tamil (தமிழ் மொழியில் நிதி மேலாண்மை)" தமிழ் மொழியில் நிதி மேலாண்மை - இந்த ஆன்லைன் பாடநெறிகளுக்கு உங்களை வரவேற்கிறோம். இந்த பாடத்திட்டத்தில் உங்கள் சொந்த தாய்மொழியில் நிதி மேலாண்மை பற்றி நீங்கள் அறிந்து கொள்வீர்கள். இந்த பாடத்தில் விவாதிக்க வேண்டிய தலைப்புகள்: a) Basics of Financial Management b) Time Value of Money c) Financial Ratio Analysis d) Cash Flow Analysis e) Fund Flow Analysis f) Capital Structuring Decisions g) Cost of Capital h) Capital Budgeting i) Working Capital Management இந்த பயிற்சி சுய வேகக் கற்றல் பாணியில் கட்டமைக்கப்பட்டுள்ளது. இந்த பாடத்திட்டத்தை எடுப்பதற்கு, கம்ப்யூட்டர் / மொபைல் ஃபோன் மூலம் நல்ல இணைய இணைப்பு தேவை. திறம்பட இந்த பாடத்திட்டத்தை கேட்க, நான் உங்கள் ஹெட்ஃபோனை பயன்படுத்த பரிந்துரைக்கிறேன். மீண்டும் இந்த பாடத்திட்டத்திற்கு உங்களை வரவேற்கிறேன்.
Views: 1164 CARAJACLASSES
Liquidity ratios
 
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Mark explains the importance of liquidity ratios
Views: 10013 gcupdates
Current Ratio - Explained in Hindi (2018)
 
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Current ratio is a liquidity ratio that takes into account current assets and current liabilities. What is the ratio formula? What is the ideal current ratio? Explained in hindi. A company should keep a tab on its liquidity risk. That is where working capital management comes into picture. Related Videos: Quick Ratio: https://youtu.be/QdPzteTZ1Dk Cash Ratio : https://youtu.be/-G5Pco2xnBk Liquidity Ratios & Solvency Ratios: https://youtu.be/ZMSW9BYb_Yo Current Assets & Current Liabilities: https://youtu.be/6_ZPGktZIts Assets, Liabilities & Equity: https://youtu.be/4BhpDCAL62M करंट रेश्यो एक लिक्विडिटी रेश्यो है जो करंट एसेट्स और करंट लाइबिलिटीज़ को ध्यान में रखता है। रेश्यो फार्मूला क्या है? आइडियल करंट रेश्यो क्या है? इस वीडियो में हिंदी में समझाया गया है। किसी भी कंपनी को अपने लिक्विडिटी रिस्क पर नज़र रखनी चाहिए। यही वह जगह है जहां वर्किंग कैपिटल मैनेजमेंट काम में आता है। Share this Video: https://youtu.be/STR_aUzAxpI Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is the meaning of the current ratio? How to calculate the current ratio of a company? What is the method of current ratio analysis of a company? What is ideal ratio of current assets and current liabilities? What are the effects of the imbalanced current ratio of a company? The current ratio is one of the most important ratio of liquidity ratios that help us to analyze the short-term financial status of a company. Current ratio calculation formula is easy to use and helps to understand the short-term liquidity risk using the current assets and liabilities statics. Also, in understanding the short-term liquidity risks & to utilize the current assets more efficiently. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Facebook – https://www.facebook.com/assetyogi Instagram - http://instagram.com/assetyogi Twitter - http://twitter.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Current Ratio”.
Views: 10169 Asset Yogi
Revision of Profitability  Ratios
 
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Revision of Profitability Ratios Page link- https://ibb.co/bSmNx7 -~-~~-~~~-~~-~- Please watch: "# 7 NPO Consumable Items (part 3)" https://www.youtube.com/watch?v=n4AvfC2xQjY -~-~~-~~~-~~-~-
Views: 3112 Accounts Khazana
#2 Ratio Analysis [Activity & Profitability Ratios] ~ Concept behind formation of a Formula
 
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Described the concept, reason and logic behind formation of different formulas of analysis of financial statements. I have discussed the core concept of contents used in the following formulas: Stock Turnover Ratio, Debtors Turnover Ratio, Creditors Turnover Ratio, Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio and Operating Expense Ratio Further discussed concept of Cost of Goods Sold, Average Accounts Receivable and Average Accounts Payable so that student need not to remember formula to solve any question Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 51238 CA. Naresh Aggarwal
What is Liquidity Ratio & its three type of ratios ? Urdu / Hindi
 
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This Video Give The Basic Concept & Basic Logic's of What is Liquidity Ratio & its three type of ratios ? Urdu / Hindi ZPZ Education Channel Link: www.youtube.com/channel/UCwFzeQDf9cGm_ZeTXV_t5SA
Views: 1337 ZPZ Education
#1 | ratio analysis | liquidity ratios | current ratio | Part -1 |
 
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This video is suitable for CA FOUNDATION RATIO ANALYSIS | RATIO ANALYSIS CS EXECUTIVE | RATIO ANALYSIS CA FOUNDATION | CA RATIO ANALYSIS | BCOM RATIO ANALYSIS | RATIO ANALYSIS BBA | CLASS 12 RATIO ANALYSIS | CLASS 12 ACCOUNTANCY RATIO ANALYSIS | RATIO ANALYSIS CMA | RATIO ANALYSIS CA INTER | RATIO ANALYSIS CLASS 12 | RATIO ANALYSIS BCOM 2ND YEAR | LIQUID RATIO ANALYSIS | CLASS 12 CURRENT RATIO | CURRENT RATIO AND QUICK RATIO | CURRENT RATIO AND LIQUID RATIO | CS EXECUTIVE RATIO ANALYSIS | CA CPT RATIO ANALYSIS | RATIO ANALYSIS OF FINANCIAL STATEMENT | RATIO ANALYSIS ACCOUNTING | RATIO ANALYSIS CA CPT | RATIO ANALYSIS CA . To watch complete course click here :- https://www.vidyakul.com/super-saver/super-saver-by-chandan-sir For Videos related call at :- 9818434684 For Books related enquiry :- 8010201786 For any other Enquiry :- 9953633448 Mail ID :- [email protected]
Liquidity Ratios Analysis
 
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An Easy Overview Of Liquidity Ratios Analysis
Views: 562 Christopher Hunt
Profitability Ratios - Gross, Net, Operating Profit Margin in Hindi (2018)
 
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Profitability ratios - Gross Profit Margin, Net Profit Margin, Operating Profit Margin and Pre Tax Margin explained in hindi. They are also called as Gross Profit ratio, Net Profit ratio and Operating Profit ratio. These return on sales ratios. Similarly, we also have return on investment (ROI) ratios like return on assets (ROA), return on capital employed (ROCE) and Return on Equity (ROE). Related Videos: EBITDA, EBIT & Operating Profit: EBITDA, EBIT & Operating Profit Markup vs Profit Margin: https://youtu.be/ajUUn72pUAk Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 Return on Equity (ROE): https://youtu.be/K-OhdUGqdzc ROCE (Return on Capital Employed): https://youtu.be/FjWuma0U2x0 Return on Assets: https://youtu.be/7z9jDKNub6U प्रोफिटेबिलिटी रेश्यो जैसे - ग्रॉस प्रॉफिट मार्जिन, नेट प्रॉफिट मार्जिन, ऑपरेटिंग प्रॉफिट मार्जिन और प्री टैक्स मार्जिन को इस वीडियो में हिंदी में एक्सप्लेन किया गया है। इनको ग्रॉस प्रॉफिट रेश्यो, नेट प्रॉफिट रेश्यो और ऑपरेटिंग प्रॉफिट रेश्यो के नाम से भी जाना जाता है। और रिटर्न ऑन सेल्स रेश्यो की ही तरह रिटर्न ऑन इन्वेस्टमेंट (ROI) रेश्यो जैसे रिटर्न ऑन एसेट्स (ROA), रिटर्न ऑन कैपिटल एम्प्लॉयड (ROCE) और रिटर्न ऑन इक्विटी (ROE) भी होते हैं। Share this Video: https://youtu.be/pHgiuO2ZYoU Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What are the different profitability ratios? What is the gross profit margin? What is the net profit margin? What is the operating profit margin and pre-tax margin? What is the meaning of gross profit ratio, net profit ratio, and operating profit ratio? How to calculate gross profit margin, net profit margin, operating profit margin, and pre-tax margin? How profitability ratio calculation can help you make better investment decisions? How to do profitability ratio analysis of a company? How to calculate the profit margins of any company? What is the formula of gross profit margin calculation? What is the formula of operating profit margin calculation? How to calculate the pre-tax profit margin calculation? How is gross profit margin different from operating profit margin? How profitability ratio calculation helps you to compare companies before investing? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Profitability Ratios - Gross, Net, Operating Profit Margin”.
Views: 16122 Asset Yogi
Profitability Ratios
 
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Introduction to Managerial Finance: Profitability Ratios
Views: 24180 LearningSims
Financial Ratios -- Profitability and Market Value Ratios
 
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This video walks through the calculation and interpretation of the gross profit margin, operating profit margin, net profit margin, return on assets, return on equity, price-earnings, market-book, and dividend-yield ratios
Views: 42814 Kevin Bracker

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