Week 4 Overview

Week 4: Overview

Ratio Analysis

Welcome to the fourth week of BUSN 5200: Basic Finance for Managers. This week we will continue our study of finance by discussing:

  • Financial Ratio Analysis

Ratio analysis is another tool we use to get information from financial statements. Last week we looked at sales and income trends, expense distribution, asset distribution, and capital structure in order to get a basic idea of how a company was operating. This week we will study how by using ratios we can take a more in-depth look at a company's liquidity, asset management, debt management, profitability, and market value.

We will also continue our discussion of the Case Study of our Chosen Company. This week we will practice the techniques you learned in last week's lesson by completing a financial overview of our Chosen Company.

Objectives

By the end of this week, students will be expected to:

  • Calculate financial ratios based on information in a company's financial statements and from market information available on the Internet.
  • Use financial ratios to analyze and report on a company's liquidity, asset utilization, debt utilization, profitability, and market value.