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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.

Course Series

This course is included in the following series:

4 CoursesFinancial Intelligence

  1. Module One in Financial Intelligence: The Income Statement – Back to Basics Series
  2. Module Two in Financial Intelligence: The Balance Sheet and Cash Flow Statements – Back to Basics Series
  3. Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  4. Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

7 CoursesFinance for Non-Finance Professionals

  • Accounting 101: How To Do Basic Accounting In One Hour
  • Accounting Review: The Basics of Debits and Credits
  • Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  • Learn Finance Principles in 1 Hour
  • Enterprise Risk Management 101
  • Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  • Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

Learning Objectives

  • Identify the four classifications of ratios
  • Discover the stories the financial statements are telling us
  • Explore the ratios to see your company’s trends

5 Reviews (14 ratings)Reviews

4
Anonymous Author
This is a good course, but the format leaves something to be desired. The video is just the instructor talking anecdotally, all of the real value comes from the workbooks.
5
Anonymous Author
The instructor is very knowledgeable and provides real-life examples. He has an excellent way of teaching. I've enjoyed all his courses.
4
Anonymous Author
Enjoyed this course! I really liked the presentation of the course and found the instructor upbeat and easy to follow.
Anonymous Author
Ok, but weaker than other modules in this series. The long anecdote about "Chainsaw Al" took too much time.
4
Anonymous Author
Not as good as others

Prerequisites

Course Complexity: Foundational

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 ext. 106, or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:58The Basics of Finance and Accounting
  7:35Financial Ratios
  6:50Financial Ratios (Continued)
  12:39Types of Ratios
  5:37Analysis and Review
SUPPORTING MATERIALS
  PDFWorkbook: The 4 Financial Ratio Classifications
  PDFThe 4 Financial Ratio Classifications Study Guide/Glossary
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM