Ch 7: Financial Statement Ratios
About This Chapter
Financial Statement Ratios - Chapter Summary and Learning Objectives
This chapter provides detailed information on financial statement ratios. Lessons cover material such as debt ratios and efficiency ratios. The entertaining lessons will also focus on information like:
- How financial statement ratios determine performance
- The most commonly used financial ratios
- The formulas that are used in different types of financial ratios
Lesson | Objective |
---|---|
Financial Statement Ratios: Determining Company Performance | Explain and understand why financial statements are important. |
Commonly Used Financial Ratios | Analyze the different types of financial ratios that are typically seen in accounting. |
What is Debt Ratio? - Calculation, Overview | Calculate a company's debt ratio and explain its importance. |
Efficiency Ratios: Types & Formula | Evaluate different types of efficiency ratios, such as inventory ratio and days sales in inventory. |
Leverage Ratios: Types & Formula | Assess the different types of leverage ratios and the formulas used to calculate those numbers. |

1. Financial Statement Ratios: Determining Company Performance
A financial statement ratio measures a business's productivity and efficiency as calculated from financial statements. In this lesson, explore how different financial statement ratios evaluate company performance through the set of examples provided.

2. Commonly Used Financial Ratios
Financial ratios are used to calculate the relationship between variables, such as a company's financial health and performance. Discover and calculate commonly used financial ratios, including current ratio, debt ratio, and gross margin.

3. What Is Debt Ratio? - Calculation & Overview
Debt ratio is the amount of assets compared to the amount of liabilities an organization has. Explore the overview of debt ratios, good and bad debt ratios, and how to calculate them.

4. Efficiency Ratios: Types & Formula
Efficiency ratios identify the relationship between assets and sales in different ways. Learn the formulas and use of the different types of efficiency ratios: inventory ratios, days sales in inventory, and asset turnover ratio.

5. Leverage Ratios: Types & Formula
In financial management, leverage ratios help organizations measure their ability to pay bills and meet other financial responsibilities. Learn about the types and formulas for leverage ratios, including debt, debt-to-equity, and interest coverage ratios. Review the definition of financial leverage ratios to understand what leverage means in terms of financial management.
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Other Chapters
Other chapters within the Accounting 302: Advanced Accounting course
- Business Ownership Types
- Key Accounting Concepts
- Journals & Ledgers in Accounting
- Accounting Equations & Formulas
- Financial Statements, Balance Sheets & Income Statements
- Analyzing Financial Statements
- Accounting for Inventory
- Accounting for Depreciation
- Accounting for Compensation, Taxes & Liabilities
- Adjustments & Closing Entries
- Corporate Accounting
- Departmentalized Accounting
- Taxation for Corporations
- Business & Financial Forecasting
- Required Assignments for Accounting 302
- Studying for Accounting 302