1.5 CPE Managers use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed. Shareholders may use ratio analysis to measure your company's results against other organizations or make judgments concerning management effectiveness and mission impact.
Important ratio 'groups' that assist in analyzing a business and its viability are efficiency and performance ratios. Performance ratios measure the function of core operations for a company. These ratios reveal information about how efficiently resources are used to generate sales and cash, among other things.
Efficiency ratios are used to analyze how well a company uses its assets and liabilities internally. Ratio analysis is a useful tool that will improve understanding of financial results over time. It provides key indicators of organizational performance.
This course focuses on specific efficiency and performance ratios and their use.
Note: This course is also a part of The Controllership Series.
Learning Objectives
- Explore the types and purpose of efficiency ratios including:
- Sales and Inventory
- Accounts Receivable (AR) turnover
- Asset turnover
- Inventory turnover
- Explore the purpose of performance ratios.
- Identify various performance ratios and how to analyze the results including:
- Days sales outstanding
- Cash Conversion Cycle
- Days payable outstanding
- Days inventory outstanding
- Days payables outstanding
Last updated/reviewed: May 22, 2022
Included In Certifications
This course is included in the following Certification Programs:
18 CoursesFinancial Statement Preparation, Reporting and Auditing Certification
- Financial Statement Introduction
- GAAP Principles, Assumptions and Considerations
- GAAP Presentation of Financial Statements
- Management Discussion and Analysis (MD&A) Update
- Sarbanes Oxley (SOX) Overview
- Sarbanes-Oxley Section 302: ICFR
- XBRL (Extensible Business Reporting Language) Introduction to Basics - Updated
- XBRL - Connection to SOX 302/404 and Critical Roles
- Analyzing Financial Ratios - Solvency, Liquidity and Debt
- Analyzing Financial Ratios - Leverage
- Analyzing Financial Ratios - Performance And Efficiency
- Financial Statement Audit in Accordance with GAAS - General Standards
- Financial Statement Audit in Accordance with GAAS - Conducting the Audit
- Financial Statement Audit in Accordance with GAAS - Auditors' Report and Opinion
- Introduction to Accounting for Income Taxes Based on Income
- Practical Application For Accounting For Income Taxes Based On Income Part 1
- Practical Application For Accounting For Income Taxes Based On Income Part 2
- FASB Codification Research System
18 CoursesThe Controllership Series Certification
- The Controllership Series: The Controller Function - Elevating the Role
- The Controllership Series: The Controller Function - Strategic and Annual Planning
- GAAP Principles, Assumptions and Considerations
- The Treasury Function Part 1: Cash, Liquidity and Investments
- The Controllership Series: The Controller Function - Cash and Investments
- ASC 842 Accounting for Leases - Deep Dive
- Revenue Recognition (ASC Topic 606) Standard Overview
- The Controllership Series: The Controller Function - Inventory Part 1
- The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
- The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
- The Controllership Series: Financial Statement Preparation and Presentation
- Analyzing Financial Ratios - Leverage
- Analyzing Financial Ratios - Performance And Efficiency
- The Controllership Series: The Controllers Role in Data Analytics and Big Data
- The Controllership Series: The Financial Close Process
- The Controllership Series: Managerial Accounting Basics and Cost Principles
- The Controllership Series: Sales, Collections and Customer Credit
- Tools for The Controllership Series Certificate
14 Reviews (49 ratings)
Reviews
Lawrence Hirsch
(Controller at Builders design)
Lynn, I must have taken 40 of your courses since joining Proformative/Illumeo. You are so easy to listen to and You have taught me so much. This is yet another fine course. I suggest students seek out your courses. They are jam packed with great case studies and content. Thank you,
Larry
Anonymous
(solo)
Great course. Stated learning objectives were met. Program materials were relevant and contributed to the achievement of the learning objectives
Anonymous
(CSR)
Such a helpful course and how to understand efficiency and performance ratios not just the calculation of them but what they show.
Anonymous
()
This review of important ratios for business was useful. The presenter has included relevant examples to aid understanding.
Dianne Anderson
(Senior Accountant - Financial Reporting .. at AmeriCU)
A lot of information that was given in a very good manner. Enjoy Lynn Fountian's webinars she is very knowledgable.
Ryan Vandermus
( at Argos Family Office, LLC)
This was a good review for manufacturing and distribution companies. I would recommend to anyone in this space.
Anonymous
(Controller)
I really enjoyed how you had this content put together.
I learned something here.
Grant Brannum
(Agent at Treasury)
Very informative and organized in an easy to follow method. Enjoyed the training.
Anonymous
(Sr. Accountant)
Course flowed smoothly with great business examples to support calculations.
Jon Aldrich
(Supervisor at RSM)
Use a split screen rather than flipping back and forth between pages.
Anonymous
(Consultant)
Really good review of ratios and implications on managing a business.
Anonymous
(CFO)
Excellent presentation on key financial ratios and how to use them.
Anonymous
()
Good course, increased my knowledge of subject. Well presented.
Prashant Shah
(Manager-FP&A at jda)
Good Course. i recommend all users to go through this course.
Prerequisites
Course Complexity: Intermediate
No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
Lynn FountainCPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
About Illumeo
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Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 75 East Santa Clara St.
- Suite 1215, San Jose, CA 95113
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