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
Have you ever wondered why the financial statements are so important to a company? In this lesson, you will learn about several financial statement ratios and how they help determine company performance.
2. Commonly Used Financial Ratios
In this lesson, we'll explore three of the most commonly used financial ratios. We'll also discuss the categories of each, how to calculate each, and how to analyze the data.
3. What Is Debt Ratio? - Calculation & Overview
In this lesson, you'll learn what a debt ratio is in accounting. You will also learn how to calculate a company's debt ratio and why it is important to financers and investors.
4. Efficiency Ratios: Types & Formula
In this lesson, we'll define efficiency ratios and discuss three examples of efficiency ratios: inventory ratio, days sales in inventory, and asset turnover ratio. You'll also learn how to calculate and analyze these ratios.
5. Leverage Ratios: Types & Formula
In this lesson, we'll define leverage. We'll review three types of financial leverage ratios: debt ratio, debt-to-equity ratio, and interest coverage ratio. You'll also learn how to calculate and analyze the results.
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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
