This is part three of a four part Back to Basics in Corporate Finance series. There are many ratios used to measure and diagnose strengths and weaknesses in a business.  During this module, you have the opportunity to dive into these ratios using Apple, Inc. financial statements. Bankers and investors use ratios to decide if a company is a good investment, and determine if its stock is a buy or a sell.  Ratios are also important because they give a holistic picture of how your business is being managed, and can be a useful tool when looking at trends between companies in the same industry.

The good thing about the math used in finance is that it is mostly adding and subtracting, multiplying and dividing; with these ratios we’ll get a bit more sophisticated by multiplying and dividing. 

As with our other modules, enjoy colorful stories about real world companies, and their experiences with using ratios to their benefit or detriment.  Hear about the infamous “Chainsaw Al”, dubbed the turnaround king, whose fall from grace came when he was exposed by the DSO ratio. The story of "Chainsaw Al" is just another example of what the numbers are telling us.