Ratio Analysis Fundamentals from edX

Welcome to the exciting world of ratio analysis, an indispensable tool for evaluating the financial performance and health of businesses. This course is a comprehensive guide designed to provide both novice and experienced readers with a deep understanding of ratio analysis techniques and their practical applications in various international contexts.

The course will help the readers in analyzing and benchmarking the company's performance to similar firms in the industry and rank the company in its industry. The course also provides an analysis of the company based on ratios, which will help the learner to identify the company’s competitive advantage, weakness, opportunities, and threats in the industry.

The ratio analysis can also be used for the establishment of trends over a specific period and readers can evaluate and benchmark the performance of different companies by way of different plots and can gauge the outlook of the companies based on past trends and consistency in performance.

The ratio analysis is also used for measuring the operational efficiency of the company and the tools can be used for proper and efficient allocation of all the assets of the company.

The ratio analysis also simplifies the leverage and the risk management of the company is taking vis account the profit being generated by the management which is a very efficient tool for both the management and the investors alike.

The primary purpose of this course is to serve as a practical and accessible resource for individuals seeking to enhance their proficiency in ratio analysis, regardless of their prior knowledge or background. Whether you are a student, an investor, an entrepreneur, or a financial professional, this course aims to equip you with the necessary skills to interpret and utilize financial ratios effectively.

This course has been prepared by State Bank Academy, the leading training institution in the Banking and finance domain in the entire southeast Asia and one of the top Apex institutes of State Bank of India. The authors of this course are experienced Bankers, financial analysts & trainers with a passion for ratio analysis.

Through this course, State Bank Academy, aims to share the repository of knowledge and expertise, gathered over two centuries of the State Bank of India's existence. State Bank of India through State Bank Academy is empowering readers to navigate the complex world of financial analysis through this course.

What you'll learn

The learners will gain an understanding of Ratio Analysis, its drivers, and its importance in successfully interpreting the complex balance sheet of the company.
The learners will understand the importance of Ratio Analysis and different means and measures to interpret the same.
The learners will understand the Ratio universe and their role in judging and measuring the performance of the company.
The learners will get to know the techniques being used to assess and measure Ratios of different gamut of companies.

Why it will be Value to Learners

This course strives to demystify the complexities of ratio analysis and provide readers with a solid foundation to perform insightful financial analysis. By explaining the calculations, highlighting interpretation nuances, and addressing international considerations, this course aims to be a comprehensive guide that empowers readers to make informed decisions in a global business environment.

By the end of this course, you will have gained the knowledge and confidence to decipher financial statements, extract meaningful insights from ratios, and effectively communicate your findings. Embrace the power of ratio analysis and unlock a world of possibilities.

Remember, numbers tell a story, and with ratio analysis, you become the storyteller

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Examines ratio analysis, which is standard in banking and finance

Explores ratio analysis and its importance, which is core to finance

Teaches ratio analysis and its use, which is useful in diverse fields

Taught by subject matter experts with deep experience in the field

Provides a comprehensive study of ratio analysis, which is beneficial to learners

May require additional background knowledge, which could be a barrier to entry

Career center

Learners who complete Ratio Analysis Fundamentals will develop knowledge and skills that may be useful to these careers:

Data Analyst

Data Analysts collect, analyze, and interpret data to help businesses make informed decisions. They need to be able to analyze a company's financial statements and make recommendations on how to improve its performance. This course may be useful for aspiring Data Analysts as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a company's financial health and making sound data-driven decisions.

See salaries and explore the career path for Data Analyst

Business Analyst

Business Analysts identify and solve problems within a business. They need to be able to analyze a company's financial statements and make recommendations on how to improve its performance. This course may be useful for aspiring Business Analysts as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a company's financial health and making sound business decisions.

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Banker

Bankers provide financial services to individuals and businesses. They need to be able to analyze a customer's financial situation and make recommendations on how to meet their financial needs. This course may be useful for aspiring Bankers as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a customer's financial health and making sound lending decisions.

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Financial Consultant

Financial Consultants provide financial advice to individuals and businesses. They need to be able to analyze a client's financial situation and make recommendations on how to achieve their financial goals. This course may be useful for aspiring Financial Consultants as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a client's financial health and making sound financial planning decisions.

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Chief Financial Officer

Chief Financial Officers are responsible for overseeing a company's financial operations and making strategic financial decisions. They need to be able to analyze a company's financial statements and make recommendations on how to improve its financial performance. This course may be useful for aspiring Chief Financial Officers as it provides a comprehensive overview of ratio analysis, which is a key skill for understanding a company's financial health and making sound financial management decisions.

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Controller

Controllers are responsible for overseeing a company's financial operations. They need to be able to analyze a company's financial statements and make recommendations on how to improve its financial performance. This course may be useful for aspiring Controllers as it provides a comprehensive overview of ratio analysis, which is a key skill for understanding a company's financial health and making sound financial management decisions.

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Tax Accountant

Tax Accountants prepare and file tax returns for individuals and businesses. They need to be able to analyze a client's financial situation and make recommendations on how to minimize their tax liability. This course may be useful for aspiring Tax Accountants as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a client's financial health and making sound tax planning decisions.

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Accountant

Accountants prepare and maintain financial records for businesses. They need to be able to analyze a company's financial statements and ensure that they are accurate and compliant with accounting standards. This course may be useful for aspiring Accountants as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a company's financial health and ensuring that its financial records are accurate.

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Auditor

Auditors examine a company's financial records to ensure that they are accurate and compliant with accounting standards. They need to be able to analyze a company's financial statements and identify any areas of concern. This course may be useful for aspiring Auditors as it provides a comprehensive overview of ratio analysis, which is a key skill for identifying and assessing financial risks.

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Financial Planner

Financial Planners help individuals and families plan for their financial future. They need to be able to analyze a client's financial situation and make recommendations on how to achieve their financial goals. This course may be useful for aspiring Financial Planners as it provides a solid foundation in ratio analysis, which is a valuable skill for understanding a client's financial health and making sound financial planning decisions.

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Risk Manager

Risk Managers identify and assess the risks that a company faces. They need to be able to analyze a company's financial statements and make recommendations on how to mitigate those risks. This course may be useful for aspiring Risk Managers as it provides a comprehensive overview of ratio analysis, which is a key skill for identifying and assessing financial risks.

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Credit Analyst

Credit Analysts assess the creditworthiness of borrowers. They need to be able to analyze a company's financial statements and make recommendations on whether or not to lend money to that company. This course may be useful for aspiring Credit Analysts as it provides a solid foundation in ratio analysis, which is a critical skill for evaluating a company's financial health and making sound lending decisions.

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Portfolio Manager

Portfolio Managers oversee the investment portfolios of individuals and institutions. They need to be able to analyze a company's financial statements and make sound investment decisions based on that analysis. This course may be useful for aspiring Portfolio Managers as it provides a comprehensive overview of ratio analysis, which is a key skill for making informed investment decisions.

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Investment Banker

Investment Bankers help companies raise capital and advise them on mergers and acquisitions. They need to be able to quickly and accurately assess a company's financial health and make recommendations based on that assessment. This course may be useful for aspiring Investment Bankers as it provides a solid foundation in ratio analysis, which is a critical skill for evaluating a company's financial performance and making sound investment decisions.

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Financial Analyst

Financial Analysts help companies make sound financial decisions using their in-depth knowledge of accounting principles. Their work may involve analyzing a company's financial statements, conducting research on industry trends, and forecasting future financial performance. This course may be useful for aspiring Financial Analysts as it teaches the fundamentals of ratio analysis, which is a valuable skill for understanding a company's financial health and performance.

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Ratio Analysis Fundamentals

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