An introduction to Financial Ratios

How do you know whether a company you have invested in or plan to invest in, is financially stable or not? By using financial ratios ofcourse! While Financial statements give you the overall picture of the company’s health, ratio analysis lets you read in between the lines and understand how each of the statement connects with the other. By using ratios, you can understand quantitative as well as qualitative aspects about a company. It lets you gather deeper insights into the profitability, operations of the business and also the efficiency of the management.

Episode 1

An Introduction to Financial Ratios

Analysing financial ratios tells you how strong/weak a company is, it provides insights into profitability, liquidity and efficiency. Time: 6:24

Episode 2

An overview of a company’s P&L statement and Balance Sheet

Financial ratios are derived at by analysing the Profit & Loss Statement and balance sheet. Time: 6:57

Episode 3

Understanding Growth Ratios

Growth Ratios tell you whether or not a firm is growing and the pace at which it is growing. Time: 5:52

Episode 4

Understanding Margin Ratios

Margins measure the profitability of a company based on its sales. Learn the various types of margins and why they are used. Time: 8:45

Episode 5

Understanding Return Ratios

Return Ratios help investors measure various returns in relation to a company’s balance sheet. Time: 10:43

Episode 6

Understanding Liquidity Ratios

The Liquidity Ratio of a company tells you whether the company has the ability to pay off its short-term debts. Time: 9:21

Episode 7

Understanding Efficiency Ratios

Efficiency Ratios show you how efficiently a company manages its resources to optimise its financial health. Time: 6:40

Episode 8

Understanding Leverage Ratios

Leverage Ratios show you how smartly a firm uses its sources of funds such as debt and equity to drive profits. Time: 6:33

Episode 9

Understanding Per Share Ratios

Per Share Ratios indicate how much of a firm’s profit, book value or dividend can be apportioned to each of its shares. Time: 11:15

Episode 10

Understanding Valuation Ratios

Valuation Ratios help investors decide whether the stock is worth its asking price in the market. Time: 6:26

Episode 11

Assignment for Financial Ratios

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