Financial Statements Analysis for Operational Efficiency and Control

Learning Objectives

• To explain financial ratio analysis. 
• To discuss the operation analysis of the business. 
• To determine manipulative business practices and how to detect them. 
• To recognize resource utilization ratios for business. 

Course Description

Financial statement analysis is the process of reviewing key financial documents to gain a better understanding of how the company is performing. While many different types of financial statements can be analyzed as part of this process, some of the most important, especially to managers, include Balance Sheets, Income statements, Cash Flow statements, and Annual reports. 

In this CPE course, we are going to learn different types of ratios that are used in financial analysis for businesses to understand their financial and operational efficiencies.  

These ratios are necessary for understanding financial statements and observing if there are no manipulations. Financial Ratio Analysis does help to understand if the company is operating to its maximum ability. We will be also looking at examples of different companies and comparing their ratios to understand how different business models impact ratios and how we can draw reasonable logical conclusions about operational efficiencies. 

Every company uses a different type of account and business model, hence financial ratios cannot be just compared from one company to another company Without understanding the business model and how it is infected by different business practices and these financial ratios.

This Accounting CPE course will answer the following questions: 

• What is financial statement analysis?
• What are financial KPIs?
• Which financial performance measures should be continuously monitored? 

Overview

• Purpose of analysis

  3 mins
• Information for analysis

  17 mins
• Tools of analysis

  32 mins
• Key profitability ratio

  50 mins
• Don't take these ratios at face value?

  82 mins
• Operational efficiency contd

  101 mins
• DuPont Analysis

  116 mins