Home
Search results “Ratio analysis efficiency ratios”

12:11
This BeeBusinessBee video focuses on the topic of efficiency 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 efficiency 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

06:53
This revision video explains the basis and calculation of two popular and important financial efficiency ratios - receivables days and payables days.
Views: 36681 tutor2u

01:27
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Efficiency Ratio”. No matter what kind of business a company is in, it must invest in assets to perform its operations. Efficiency ratios measure how effectively the company utilizes these assets, as well as how well it manages its liabilities. A ratio used to calculate a business’s efficiency. Not all businesses calculate the efficiency ratio the same way. The ratio can be calculated in various ways: In all methods, an increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the corporation and its shareholders. Also referred to as the overhead burden or overhead efficiency ratio. Some common ratios are accounts receivable turnover, fixed asset turnover, sales to inventory, sales to net working capital, accounts payable to sales and stock turnover ratio. These ratios are meaningful when compared to peers in the same industry and can identify businesses that are better managed relative to the others. Also, efficiency ratios are important because an improvement in the ratios usually translate to improved profitability. By Barry Norman, Investors Trading Academy

02:47
Ratio analysis is an important way to analyse a company’s financial statements, they measure various aspects of a company’s operating and financial performance. Input to calculate ratio’s come from the financial statements. Ratios can be classified into 4 broad categories namely: Efficiency ratios Liquidity & solvency ratios Profitability ratios Valuation ratios Efficiency ratios are also known as activity ratios, they measure how efficiently the company performs its day to day operations. The important efficiency ratios discussed are: (* All ratios in this video are calculated for the whole year) Inventory turnover ratio Receivable turnover ratio Payable turnover ratio Fixed asset turnover ratio Inventory turnover - measures how many times and how fast a company has sold its inventory in the year The inventory turnover ratio is calculated as Inventory turnover = COGS/ Average inventory The Inventory turnover ratio for Star Motocorp was (*All figs are in Rs. Million) 200000/5000 = 40 Times, meaning it sold its inventory 40 times during the year Inventory days are the number of days it takes a company to sell its inventory. Is calculated as = No of days in a period/Inventory turnover. Inventory days for Star Motocorp for FY17 was 365/40 = 9 days, meaning they sold their inventory every 9 days Lower inventory days can mean the company sells out its inventory quickly or it is not stocking the correct amount of inventory. An investor needs to study the financial statements of the company in detail to find out the exact reason for the same. Receivable turnover – Measures the efficiency with which a company collectes cash from its debtors/customers. The receivable turnover ratio is calculated as Receivable turnover – Sales/ Average receivables The receivable turnover ratio for Star Motocorp was 305000/12000 = 25.41, meaning they had collected cash 25.41 times from its customers during the year Recievable days for Star Motocorp was 365/25.41 = 14 days Meaning the company collected cash from its customers every 14 days Lower receivable days means that the company is efficient and fast in collecting cash from its customers and is a good sign. Payable turnover – measures the no of times a company pays its creditors/suppliers from whom it has purchased raw materials during the year The payable turnover ratio is calculated as Payable turnover = COGS/ Average payables Payable turnover for Star Motocorp was 200000/30000 = 6.66, signifying the company paid its suppliers 6.66 times during the year Payable days of Star Motocorp was = 365/ 6.66 = 54 days. Star Motocorp paid its suppliers once in every 54 days Higher payable days can indicate that the company is enjoying favourable credit terms or is unable to pay its suppliers. An investor needs to study the company’s financial statements to find out the reason for the same Fixed asset turnover – Measures the efficiency of a company in managing its fixed assets. It is calculated as Fixed asset turnover – Sales/ Average net fixed assets. The fixed asset turnover for Star Motocorp was 305000/40000 = 7.6, It signifies that for every 1 Re of fixed assets that the company had it generated sales of Rs 7.6 A higher ratio needs to be seen in positive light. It is very important for investors to study all ratios over a period of time and compare them across different companies in the same sector/industry.
Views: 338 Fintapp

06:14
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: 76426 tutor2u

13:10
This screncast demonstrates the calculation of eight basic ratios for assessing an entity's financial performance.
Views: 2034 Luke Fannon

02:55
Views: 1277649 MBAbullshitDotCom

11:54
Views: 35293 Asset Yogi

05:56
This short revision video on financial ratios explains the Inventory Turnover ratio. Inventory turnover is one of the three main working capital "efficiency" ratios that helps assess how well a business is managing its working capital (trade receivables + inventory - trade payables).
Views: 9965 tutor2u

07:03
This revision video introduces the concept of ratio analysis.
Views: 99318 tutor2u

06:51
Video explains what are activity ratios
Views: 1997 FinShiksha

06:17
Mere reading of figures in a Company's financial statement may give an inaccurate or misleading picture of the Company’s performance and its financial standing in the industry. To understand any figure in the B/S or P/L account, it needs to be related to various other figures or be compared with peer group companies. Ratio Analysis helps you to understand and analyse every business - its profitability, solvency, efficiency, capital strength, liquidity, periodic performance and much more. Knowledge and use of Ratio Analysis is a must for every investor, business manager, banker, competitor, research analyst, creditor and any person taking a financial or commercial decision about the Company.

04:30
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: 72034 Subjectmoney

03:20
This video looks at the processes of Financial Management, in particular financial ratios (Efficiency). The information presented in this video has been sourced from a variety of locations, and/or has been provided to me through a long line of other educators, thus, the exact location is unknown. No attempt is made to claim this as my own work. Sources: Chapman, Stephen, Natalie Devenish, Mohan Dhall and Cassy Norris. Business Studies in Action: HSC Course. 4th ed. Milton, QLD: John Wiley & Sons, 2011.
Views: 531 Marco Cimino

03:15
This video talks about analyzing and evaluating the company's financial health using the financial ratio analysis where the key ratios used to track the company's performance are: common size ratios, liquidity ratios, efficiency ratios and solvency ratios. For more videos, please visit our website http://www.potential.com This video is part of the Khalifa Fund training Program, a free online training program that supports and supplies SMEs with free seminars, funding opportunities and exposure!
Views: 349 SME Toolkit UAE

13:00

02:16

00:45
VCE Accounting Unit 4. Slides of this presentation can be found at my SlideShare page http://www.slideshare.net/mjall3
Views: 1100 Michael Allison

46:56
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.

12:48

09:20
Part three of a multipart example on how to calculate basic financial ratios. This part focuses on asset management ratios -- inventory turnover, days sales outstanding, fixed asset turnover, and total asset turnover.
Views: 23796 Kevin Bracker

08:25
Cash conversion cycle = DOH + DSO - DPO. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 18112 Bionic Turtle

09:35
Views: 3866 OptionsIndicators

07:00
Views: 29576 Macs Finance

32:08
Views: 52470 AccoFina

02:10
The accounts payable turnover ratio is a liquidity ratio that measures how many times a company pays its creditors over an accounting period. On the other hand, Days Payable Outstanding (DPO) refers to the average number of days it takes a company to pay back its accounts payable. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/days-payable-outstanding/

21:01
In this lecture I have explained 'Control Ratios' through concept not merely a trick to remember the formula. This concept will help students while attempting question related to Overhead Variance in Standard Costing and in problems related to Budgetary Control. This lecture explains the followings : 1. Activity Ratio 2. Efficiency Ratio 3. Capacity Ratio 4. Budget Time / Hours 5. Standard Time / Hours 6. Actual Time / Hours 🔴 Download Notes: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing 🔴 Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal 🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal
Views: 12800 CA. Naresh Aggarwal

10:19
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: 117289 tutor2u

09:53
Ratios to measure efficiency
Views: 910 david hopcroft

13:12
Part of the "Ratios" series, this portion of the basic overview of financial statement analysis focuses on Efficiency. That is: how efficient are our resources (e.g., assets, capital) at producing results (e.g., net income).
Views: 1825 Econo McCall

20:46
Another lesson for Business Studies 3 students. This lessons looks at profitability ratios, the current ratio and the debt to equity ratio.
Views: 10206 Bernd Meyer

03:46
Definition Of Operating Ratio What is the Formula for Operating Ratio? What are the Components of Operating Ratio. Objective Of Calculating Operating Ratio. Examples of Operating Ratio. The operating ratio is computed to establish relationship between operating cost and net sales. This is closely related to the ratio of operating profit to net sales. Operating Ratio = Cost of goods sold+ Operating Expenses / Net sales X 100 or Operating Ratio = Operating cost / Net sales X 100 Cost of sales includes direct cost of goods sold as well as other operating expenses, administration, selling and distribution expenses which have matching relationship with sales. Financial charges such as interest, provision for taxation etc. are generally excluded from operating expenses. Cost of Goods Sold = Operating Stock+Purchases+Direct Expenses + Manufacturing Expenses - Closing Stock or Sales - Gross Profit. Operating Expenses = Administrative Expenses + Selling and Distribution Expenses. Operating ratio is the test of the operational efficiency of the business. It shows the percentage of sales that is absorbed by the cost of sales and operating expenses. Lower operating ratio shows higher operating profit and vice versa. An operating ratio ranging between 75% and 80% is generally considered as standard for most manufacturing concerns. This ratio is considered to be a yardstick of operating efficiency but it should be used cautiously because it may be affected by a number of uncontrollable factors beyond the control of the firm. Moreover, in some firms, non-operating expenses form a substantial part of the total expenses and in such cases operating ratio may give misleading results.
Views: 8216 Alternate Learning

00:48
http://money.ko.mk Asset Management Ratios - Efficiency Ratios - Turnover Ratios
Views: 820 MoneyNewsNow

11:37
This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.
Views: 63798 tutor2u

27:07
Views: 269453 StayLearning

02:08
A video which examines our second efficiency ratio trade payable days. AKA. debtor days.
Views: 99 Mr Miles Harris

03:43
The efficiency ratio is a quick and easy measure of a bank's ability to turn resources into revenue. http://www.kautilyas.com/financial-analysis.html
Views: 1164 Kautilyas

17:44
In this video on Credit Analysis, we look at Credit Analysis from Beginner’s point of view. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬? ---------------------------------------- Credit analysis is a process of drawing conclusions from available data (both quantitative and qualitative) regarding the credit – worthiness of an entity, and making recommendations regarding the perceived needs, and risks. 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 ------------------------------------------ 1. Proposal 2. Inspection 3. Financial security 4. Market Review 5. Presentation of Proposal 6. Sanction for assessment 7. Data Collection 8. Analysis of various parameters 9. Credit Rating 10. Presentation for sanction 11. Terms & Condition Established 12. Proposal Approved 𝐓𝐡𝐞 𝟓 𝐂'𝐬 𝐨𝐟 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 ---------------------------------------------- 1. Character 2. Capacity 3. Capital 4. Collateral (or guarantees) 5. Conditions 𝐂𝐫𝐞𝐝𝐢𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬 𝐑𝐚𝐭𝐢𝐨𝐬 -------------------------------------- 1. Liquidity ratios 2. Solvability ratios 3. Solvency ratios 4. Profitability ratios 5. Efficiency ratios 6. Cash flow and projected cash flow analysis 7. Collateral analysis 8. SWOT analysis To know more about Credit Analysis Ratio, you can go to this link here: https://www.wallstreetmojo.com/credit-analysis/
Views: 5514 WallStreetMojo

06:20

13:50
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: 14437 Bernd Meyer

03:30
A video exploring our third & final efficiency ratio: inventory turnover.
Views: 85 Mr Miles Harris

18:04
Revision of Activity or Turnover Ratios Page link- https://ibb.co/ftgxx7 -~-~~-~~~-~~-~- Please watch: "Important for exam | Chapter1 Analysis of financial Statement " https://www.youtube.com/watch?v=Dl5bCtHmoiY -~-~~-~~~-~~-~-
Views: 1873 Accounts Khazana

09:18
Comparing two companies: Revision of some simple ratios
Views: 22736 david hopcroft

24:13

12:32
Stock Turnover, Debtor and Creditor Days, Gearing

01:39
all about profitability ratios... for more videos click https://www.youtube.com/watch?v=Pp6oSc6pQa8 keywords:- profitability ratios explained, profitability ratios analysis, liquidity and profitability ratios, accounting profitability ratios, profitability ratios, profitability ratios in hindi profitability ratios formulas profitability ratios formula pdf profitability ratios formula investopedia profitability ratios formula for banks profitability ratios formula and significance profitability ratios formula sheet profitability ratio formula accounting profitability ratio formula wikipedia profitability ratio formula excel profitability ratio formula ppt profitability ratios formula example profitability ratios formula profitability ratio formula and example financial ratios formula and explanation financial ratios formula and interpretation financial ratios formula and analysis profitability ratios and formula leverage ratio formula accounting financial ratios formulas and examples efficiency ratio formula accounting profitability ratio analysis formula leverage ratio formula and meaning efficiency ratios formula banks leverage ratio formula basel iii financial ratios formulas book leverage ratio formula banks financial ratios formula for banks leverage ratio formula under basel iii leverage ratio calculation formula basel iii financial ratios formulas cheat sheet financial ratio calculations formula profitability ratios calculation formulas and explanations financial ratios formulas definitions and explanations financial ratios formulas .doc profitability ratio definition formula analysis & example profitability ratio definition formula different profitability ratios formula financial ratios formula excel financial ratios formula explanation profitability ratios calculation example financial ratios formulas excel sheet financial ratios formulas examples financial ratios formulas and explanations pdf leverage ratio formula for banks efficiency ratio formula for banks leverage ratio formula for basel iii financial ratios formulas for excel profitability ratios formula gross profit ratio how to calculate profitability ratios formula profitability ratio formula in accounting financial ratios formula investopedia financial ratio formula in excel financial ratios formulas in pdf financial ratios formulas india efficiency ratio formula in costing efficiency ratio formula in accounting financial ratios formula list leverage ratio formula macroeconomics profitability ratio gross margin formula kaufman efficiency ratio formula metastock financial ratios formulas and meaning financial ratios formula pdf financial ratios formula ppt financial ratios calculation pdf financial ratios analysis formulas pdf financial accounting ratios formulas pdf efficiency ratio formula receivables turnover financial ratios formula sheet financial ratios formula cheat sheet financial ratios formulas uk profitability ratios with formula financial ratios formulas with explanations financial ratios formulas with examples leverage ratio formula wiki financial ratios with formula financial ratios formula xls financial ratios calculation xls tier 1 leverage ratio formula basel 3 leverage ratio formula hope you like the ppt animation.
Views: 1695 Sonu Singh - PPT wale

50:36
Views: 13378 FinShiksha

17:59
Revision of Profitability Ratios Page link- https://ibb.co/bSmNx7 -~-~~-~~~-~~-~- Please watch: "Important for exam | Chapter1 Analysis of financial Statement " https://www.youtube.com/watch?v=Dl5bCtHmoiY -~-~~-~~~-~~-~-
Views: 4136 Accounts Khazana

00:39
Video segment for Financial Statement Analysis
Views: 23 Ellen Tan

01:19