Corporate Finance #2 Financial Ratios

Introduction

Are you looking to enhance your financial analysis skills and make more informed decisions in corporate finance? The course "Corporate Finance #2 Financial Ratios" might be exactly what you need. This comprehensive program dives deep into the world of ratio analysis, a crucial tool for assessing an organization's financial health and projecting future performance. By the end of this course, you'll gain the proficiency to analyze financial statements effectively and make strategic decisions with confidence. Whether you're a finance professional or an aspiring analyst, this course offers valuable insights and practical skills that can propel your career forward.

Course Details

Course Curriculum Overview

The "Corporate Finance #2 Financial Ratios" course is structured to provide a thorough understanding of ratio analysis and its applications in corporate finance. The curriculum includes:

Introduction to Ratio Analysis: Understanding the concept and its significance in decision-making.
DuPont System of Analysis: Learning how to evaluate financial performance using this system.
Return on Investment (ROI): Calculating and interpreting ROI in various scenarios.
Key Financial Ratios: Analyzing and interpreting ratios such as return on assets, total asset turnover, and profit margin.
Financial Health and Risk Assessment: Using return on equity and debt-to-equity ratios to assess an organization's financial health.
Credit and Collection Policies: Evaluating the accounts receivable collection period.
Interest Coverage Ratios: Assessing the organization's ability to meet interest obligations.
Trend Analysis: Conducting trend analysis of return on equity to identify financial performance patterns.
Divisional Performance Comparison: Utilizing ratio analysis to compare different divisions within an organization.
Financial Forecasting: Constructing projected income statements and balance sheets using ratio analysis.

Key Learning Outcomes

Upon completion of the course, learners will be able to:

Define and explain the significance of ratio analysis in corporate finance.
Apply the DuPont System to evaluate financial performance and identify profitability drivers.
Calculate and interpret ROI, return on assets, total asset turnover, and profit margin.
Assess financial health and risk using return on equity and debt-to-equity ratios.
Evaluate credit and collection policies through the accounts receivable collection period.
Analyze interest coverage using times interest earned and fixed charge coverage ratios.
Conduct trend analysis to identify patterns in financial performance.
Compare divisional performance within an organization.
Forecast future performance by constructing projected financial statements.

Target Audience and Prerequisites

This course is designed for:

Finance professionals seeking to enhance their analytical skills.
Business students and aspiring analysts interested in corporate finance.
Anyone looking to make informed financial decisions using ratio analysis.

Prerequisites include:

Basic understanding of financial statements, including balance sheets and income statements.
Access to a computer or laptop with internet connectivity.
Eagerness to learn and apply ratio analysis techniques.
Willingness to engage in hands-on practice using Microsoft Excel.

Course Duration and Format

The course consists of 13.5 hours of on-demand video content, 1 article, and 24 downloadable resources. It is accessible on mobile and TV, offering flexibility for learners to study at their own pace. Upon completion, learners receive a certificate of completion.

Instructor Background

The course is taught by Robert (Bob) Steele, a seasoned professional with extensive experience in finance and accounting. Bob is a CPA, CGMA, and holds an M.S. in Taxation. With over 933,000 students and a 4.5 instructor rating, his expertise and teaching style make this course highly valuable for learners.

Benefits & Applications

Practical Skills Gained

Learners of this course will acquire practical skills in:

Ratio Analysis: Master the techniques to analyze financial statements and make data-driven decisions.
Financial Forecasting: Use ratio analysis to project future financial performance.
Excel Proficiency: Gain hands-on experience with Microsoft Excel, enhancing your data analysis capabilities.

Real-World Applications

The skills learned in this course have numerous real-world applications, including:

Financial Decision-Making: Use ratio analysis to assess investment opportunities and make informed financial decisions.
Performance Evaluation: Evaluate the financial performance of different divisions within an organization.
Risk Assessment: Assess the financial health and risk profile of an organization to guide strategic planning.

Career Relevance

Completing this course can significantly boost your career in several ways:

Enhanced Analytical Skills: Stand out in the job market with advanced financial analysis skills.
Increased Employability: Finance and accounting roles often require proficiency in ratio analysis.
Career Advancement: Use your new skills to pursue higher-level positions in finance and corporate strategy.

Industry Alignment

The course aligns well with industry standards and practices, making it relevant for professionals in various sectors, including:

Finance and Accounting: Essential for roles in financial analysis, accounting, and corporate finance.
Business Management: Useful for managers and executives involved in strategic decision-making.
Consulting: Valuable for consultants who provide financial advice and analysis to