Key Ratio Analysis: Calculating the Numbers Correctly

Author: David Osburn

Many financial professionals including CPAs, bankers, CFOs, controllers, financial analysts and credit underwriters use financial ratios but do not leverage them for maximum effectiveness.

Attend this webinar and learn to calculate a “five-step” key financial ratio analysis model that will help clarify and unify this often confusing subject. The five steps are liquidity, activity, leverage, operating performance, and cash flow analysis.
The attendee will also be provided with industry comparisons and software applications to illustrate the key ratio concepts. Additionally, a case study will be utilized to illustrate the models outlined in the webinar.

Publication Date: October 2015

Designed For
CPAs, CFOs, controllers, financial managers, auditors, financial analysts and practitioners who provide accounting, tax or consulting services to businesses.

Topics Covered

• The five-step key financial ratio analysis model (liquidity, activity, leverage, operating performance and cash flow analysis)
• Adjustments of the five-step key ratios
• Cash flow applications, including traditional, personal, and global
• Illustration of the five-step model through a case study
• Industry comparisons and key ratio software applications

Learning Objectives

• Calculate the five-step key ratio analysis model
• Identify how to adjust key ratios
• Recognize cash flow analysis applications
• Illustrate the five-step model through case analysis
• Recognize industry comparisons and software applications

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Must have basic knowledge of Key Ratio Analysis Please have a calculator or laptop (with Excel) available for use in the webinar

Advance Preparation
None