Advanced Financial Statement Analysis

How to Evaluate a Company's Operating Profitability Preview 03:46

In this lecture, you will learn how to determine if a company is profitable by using the most effective profitability ratios.

Gross Profit Margin Ratio (GPM) Preview 03:56

The gross profit margin is a financial metric used to assess a company's financial health and business model by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Operating Profit Margin Ratio (OPM) Preview 04:38

The operating profit margin is a measure of profitability. It indicates how much of each dollar of revenues is left over after both costs of goods sold and operating expenses are considered. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Net Profit Margin Ratio (NPM) Preview 04:23

The net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Cash Return on Assets Ratio (Cash ROA) Preview 04:13

The cash return on assets ratio is used to compare a business' performance among other industry members. It is an efficiency ratio that rates actual cash flows to company assets without being affected by income recognition or income measurements. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Return on Common Equity Ratio (ROE) Preview 03:43

The return on common equity ratio or ROE is a profitability ratio that measures the ability of a firm to generate profits from its shareholders investments in the company. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Return on Debt Ratio (ROD) Preview 03:40

The return on debt (ROD) can be expressed as the quantification of a company's performance or net income as allied to the amount of debt issued by the company. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Return on Capital Employed Ratio (ROCE) Preview 04:09

The return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

Return on Retained Earnings Ratio (RORE) Preview 04:00

The return on retained earnings (RORE) is a financial ratio that calculates how much a company earns for its shareholders by reinvesting its profits back into the company.In this lecture, you will learn how to use this ratio to evaluate a company's operating profitability.

How to Evaluate a Company's Operating Efficiency Preview 03:36

In this lecture, you will learn how to determine whether a company is efficient in its operations by using the most effective efficiency ratios.

Cash Turnover Ratio Preview 04:14

The cash turnover ratio is the amount of times a company has spent through its cash during the reporting period. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Days Cash on Hand Preview 04:37

The days cash on hand is the number of days that an organization can continue to pay its operating expenses, given the amount of cash available. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Inventory Turnover Ratio Preview 05:26

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Days Inventory Outstanding Preview 04:40

The days inventory outstanding (DIO), defined also as days sales of inventory, indicates how many days on average a company turns its inventory into sales. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Accounts Receivable Turnover Ratio Preview 04:26

The accounts receivable turnover ratio is the number of times per year that a business collects its average accounts receivable. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Days Sales Outstanding Preview 04:30

The days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment after a sale has been made. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Accounts Payable Turnover Ratio Preview 04:20

The accounts payable turnover is a ratio that measures the speed with which a company pays its suppliers. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Days Payable Outstanding Preview 04:48

The days payable outstanding (DPO) is an efficiency ratio that measures the average number of days a company takes to pay its suppliers. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Working Capital Turnover Ratio Preview 04:27

The working capital turnover ratio measures how well a company is utilizing its working capital to support a given level of sales. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Days Working Capital Preview 04:00

The days working capital is an accounting and finance term used to describe how many days it takes for a company to convert its working capital into revenue. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Fixed Asset Turnover Ratio Preview 05:01

The fixed asset turnover (FAT) is an efficiency ratio that indicates how well or efficiently the business uses fixed assets to generate sales. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

Total Asset Turnover Ratio Preview 03:42

The total asset turnover ratio measures the value of a company's sales or revenues generated relative to the value of its total assets. In this lecture, you will learn how to use this ratio to evaluate a company's operating efficiency.

How to Evaluate a Company's Short-term Debt Repayment Capacity Preview 03:16

In this lecture, you will learn how to examine a company's ability to settle its short-term debt by using the most effective liquidity ratios.

Current Ratio Preview 05:57

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

Acid Test Ratio Preview 03:54

The acid test ratio is a liquidity ratio that measures the ability of a company to pay its current liabilities when they come due with only quick assets. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

Cash Coverage Ratio Preview 03:55

The cash coverage ratio is useful for determining the amount of cash available to pay for a borrower's interest expense, and is expressed as a ratio of the cash available to the amount of interest to be paid. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

Current Cash Debt Coverage Ratio Preview 04:40

The current cash debt coverage ratio is a liquidity ratio that measures the relationship between net cash provided by operating activities and the average current liabilities of the company. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

Cash to Working Capital Ratio Preview 03:27

The cash to working capital ratio measures how well a company can meet its short-term liabilities using its liquid assets such as Cash and Cash Equivalents and Marketable Securities. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

Inventory to Working Capital Ratio Preview 03:27

The inventory to working capital ratio is defined as a method to show what portion of a company's inventories is financed from its available cash. In this lecture, you will learn how to use this ratio to evaluate a company's short-term debt repayment capacity.

How to Evaluate a Company's Long-term Debt Repayment Capacity Preview 03:29

In this lecture, you will learn how to examine a company's ability to settle its long-term debt by using the most effective solvency ratios.

Financial Leverage Ratio Preview 03:30

The financial leverage ratio is a measure of how much assets a company holds relative to its equity. In this lecture, you will learn how to use this ratio to evaluate a company's long-term debt repayment capacity.

Net Debt to EBITDA Ratio Preview 02:50

The net debt to earnings before interest depreciation and amortization (EBITDA) ratio is a measurement of leverage, calculated as a company's interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. In this lecture, you will learn how to use this ratio to evaluate a company's long-term debt repayment capacity.

Asset Coverage Ratio Preview 05:28

The asset coverage ratio is a test that determines a company's ability to cover debt obligations with its assets after all liabilities have been satisfied. In this lecture, you will learn how to use this ratio to evaluate a company's long-term debt repayment capacity.

Cash Flow to Debt Ratio Preview 04:13

The cash flow-to-debt ratio is a type of coverage ratio, and can be used to determine how long it would take a company to repay its debt if it devoted all of its cash flow to debt repayment. In this lecture, you will learn how to use this ratio to evaluate a company's long-term debt repayment capacity.

Interest Coverage Ratio Preview 03:44

The interest coverage ratio is used to determine how easily a company can pay their interest expenses on outstanding debt. In this lecture, you will learn how to use this ratio to evaluate a company's long-term debt repayment capacity.

How to Evaluate a Company's Cash Flow & Share Price Preview 03:03

In this lecture, you will learn how to determine if a company’s stock price is currently cheap in comparison with its competitors by using the most effective valuation ratios.

Price to Sales Ratio Preview 03:42

The  price to sales ratio is an investment valuation ratio that shows a measure of the value investors are receiving from a company's stock by indicating how much are they are paying for the stock per dollar of the company's sales. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Price to Earnings Ratio Preview 04:34

The price to earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Price to Cash Flow Ratio Preview 03:35

The price-to-cash-flow ratio is a stock valuation indicator that measures the value of a stock's price to its cash flow per share. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Price to Book Ratio Preview 03:21

The price-to-book ratio (P/B Ratio) is a ratio used to compare a stock's market value to its book value. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Price Earnings to Growth and Dividend Yield Ratio Preview 03:37

The price/earnings-to-growth and dividend yield ratio (PEGY) demonstrates how much the market is willing to pay for earnings growth and dividend yield. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Earnings per Share Preview 04:12

The earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Dividend Payout Ratio Preview 04:54

The dividend payout ratio is the measure of dividends paid out to shareholders relative to the company's net income. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Dividend Coverage Ratio Preview 03:39

The dividend coverage ratio measures the number of times that a company could pay dividends to its shareholders. In this lecture, you will learn how to use this ratio to evaluate a company's investment value.

Final Words Preview 00:57

Thank you so much for taking this course! If you have any concerns or questions, feel free to drop us a line, we are always committed to helping you!

Express Your Thoughts! Preview 00:00

Your Next Steps - Upgrade Your Knowledge! Preview 04:16

Exclusive Financial Ratio Analysis eBook Preview 00:03

Introduction Preview 01:47

What is Value Investing? Preview 05:13

3 Real-World Steps to Implement the Value Investing Strategy Preview 06:57

Price Is What You Pay, Value Is What You Get Preview 05:56

Understanding Margin of Safety Preview 02:40

Principle 1: Understand What You Are Doing Preview 02:07

Principle 2: Invest in a Cash Rich Business Preview 01:57

Principle 3: Seek Out Businesses with Low Debt Preview 01:58

Principle 4: Rely on High-Quality Management Preview 01:49

Principle 5: Avoiding Losses is The First Priority Preview 01:47

Principle 6: Invest for the Long-Term Preview 02:14

Principle 7: Know When to Sell Your Stocks Preview 02:50

What is an Economic Moat? Preview 02:39

Why a Company’s Economic Moat is So Important Preview 03:59

The Advantage of Lower Cost Preview 01:58

The Advantage of Greater Size Preview 02:20

The Possession of Unique Assets Preview 02:42

The Benefits of the Network Effect Preview 02:24

The Ability to Command High Switching Costs Preview 02:19

Your Next Steps Preview 05:37

Introduction Preview 02:22

How to Read a Stock Chart Preview 10:19

How to Use Support & Resistance Preview 06:48

How to Use Exponential Moving Averages (EMA) Preview 08:15

How to Use Moving Average Convergence Divergence (MACD) Preview 06:57

How to Use Relative Strength Index (RSI) Preview 06:02

Reversal Patterns: Double Tops and Bottoms Preview 05:19

Reversal Patterns: Head and Shoulders Preview 05:32

Continuation Patterns: Triangles, Flags and Pennants Preview 05:34

Continuation Patterns: Cup and Handle Preview 05:06

Final Words Preview 00:24

Session 1: How to Easily Grow Your Income by 10.89% Every Year Preview 17:23

Session 2: How to Instantly Build 4 New Streams of Passive Income Preview 15:06

Session 3: How to Easily Boost Your Return to 20.31% or More! Preview 20:42