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Ch 7: Financial Statement Ratios

About This Chapter

Watch our video lessons and read text lessons to learn all about financial statement ratios. This is an important concept to know in order to successfully grasp accounting. Use the lesson quizzes to gauge your knowledge of the material.

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

LessonObjective
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.

5 Lessons in Chapter 7: Financial Statement Ratios
Test your knowledge with a 30-question chapter practice test
Financial Statement Ratios: Determining Company Performance

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.

Commonly Used Financial Ratios

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.

What Is Debt Ratio? - Calculation & Overview

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.

Efficiency Ratios: Types & Formula

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.

Leverage Ratios: Types & Formula

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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More Exams
There are even more practice exams available in Financial Statement Ratios.
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