FINANCIAL RATIOS: How to Analyze Financial Statements
💥Financial Ratios Cheat Sheets → accountingstuff.com/shop
In this short tutorial you'll learn how Financial Ratio Analysis works. We'll break Financial Ratios down into their five main groups:
▪ Profitability Ratios
▪ Liquidity Ratios
▪ Efficiency Ratios
▪ Leverage Ratios
▪ Price Ratios
Then I'll show you how to calculate 25 of the most popular Financial Ratios using the Income Statement and the Balance Sheet. Afterwards, you can jump into my Financial Ratios Playlist to explore each ratio in more detail.
🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
00:28 - FINANCIAL STATEMENTS
01:16 - WHAT IS FINANCIAL RATIO ANALYSIS?
01:56 - What types of Financial Ratio are there?
- Cheat Sheet Bundle: accountingstuff.com/shop/fina...
02:39 - PROFITABILITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/prof...
03:47 - Gross Profit Margin (GPM)
04:19 - Operating Profit Margin (OPM)
04:40 - Net Profit Margin (NPM)
05:46 - Return on Assets (ROA)
06:49 - Return on Equity (ROE)
07:37 - Return on Capital Employed (ROCE)
08:11 - LIQUIDITY RATIOS
- Cheat Sheet: accountingstuff.com/shop/liqu...
09:10 - Cash Ratio
09:50 - Quick Ratio
10:17 - Current Ratio
10:29 - EFFICIENCY RATIOS
- Cheat Sheet: accountingstuff.com/shop/effi...
11:04 - Inventory Turnover Ratio
11:26 - Receivables Turnover Ratio
11:43 - Asset Turnover Ratio
12:16 - Payables Turnover Ratio
12:40 - Cash Conversion Cycle
13:09 - Days Sales of Inventory
13:43 - Days Sales Outstanding
14:07 - Days Payable Outstanding
14:52 - LEVERAGE RATIOS
- Cheat Sheet: accountingstuff.com/shop/leve...
15:19 - Debt to Assets Ratio (DTA)
15:43 - Debt to Equity Ratio (DTE)
16:39 - Interest Coverage Ratio
17:03 - Debt Service Coverage Ratio (DSCR)
17:56 - PRICE RATIOS
- Cheat Sheet: accountingstuff.com/shop/pric...
18:26 - Earnings Per Share (EPS)
19:27 - Price-To-Earnings Ratio (P/E Ratio)
20:19 - Price/Earnings-To-Growth Ratio (PEG Ratio)
21:17 - Dividends Per Share (DPS)
22:04 - Dividend Yield Ratio
22:30 - Dividend Payout Ratio
22:59 - FINANCIAL RATIOS MIND MAP
🔎FAQ
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#accounting #financialratios #accountingstuff
Пікірлер: 458
I hope you know you are basically my accounting 101 professor. My TESU professor just links all your videos in our class materials and it's up to your videos and the book to learn everything. You are doing amazing work and helping me so much!
@gingerscapturethemomentpho4546
Жыл бұрын
mine too!
@Missginalove
11 ай бұрын
My professors just through a book at us 🙄
@albertc2390
10 ай бұрын
@@Missginalovethrew
Words cannot express how grateful I am for your course, thank you James
I swear, these kind of videos that make me believe that university education is useless, whenever there is Monopoly in any field, the quality always go down, thats the thing about internet, the professor at the university, cannot get fired nor someone else takes his place, unlike in the internet, if you wanna make money, you gotta provide something special.
@AccountingStuff
2 ай бұрын
Glad to hear you found this one useful!
@danishahmed4005
24 күн бұрын
@Ibrahim. Agreed video is excellent. But our teachers are also excellent. The video came through also by learning only
Your videos are the reason I am passing my Introduction to Financial Accounting course. I have realized that I learn best by understanding the big picture, and THEN learning the steps which is not the way my textbooks are written, but it is the way you explain the concepts. You're the hero all of us accounting students didn't know we needed. Thank you!
@UmarA2203
27 күн бұрын
got my Intro to fin. accounting final exam on Monday
thank you so much for this video! i have to memorize around 40 ratios for our midterm exams, and this video helped me tick 26 of them! i love how you grouped the ratios, which made memorizing the formulas a loooot easier, explained what these formulas stand for, their relevance. so happy i came by this vid. it helped me a lot! i've also been sending my classmates this video!
@AccountingStuff
Жыл бұрын
No worries, all the best in your midterms!
2 years off as an accountant and your videos help me refresh my memory, thank you so much james
This is the most comprehensive, complete and concise video available on financial ratios.....it is my go-to video any time I want to revise my concepts.
@AccountingStuff
7 ай бұрын
Thanks, glad you enjoyed it!
@abasi-enebassey1108
5 ай бұрын
I totally agree. Thank you so much @AccountingStuff
Brilliant and Beautiful Financial Control Systems. Thanks for posting!
What a great video !! I needed this video since long time and I really wanted to learn this ratios from you .. you got your special way to learn others .. you are really talented ... thanks alot ❤️ I hope you start your costing and budgeting videos that would be great 👌🏻
These videos are so helpful. Would love some more on gearing and gearing ratios!
James! You won’t believe how happy I am to see you ! I had a terrible day and you changed my mood a lot ! Please, please visit us more often! You are amazing 😀 excellent lessons as always.
@AccountingStuff
Жыл бұрын
Thanks Mona, sorry to hear you had a bad day. All the best!
To achieve greatness, you need to start working with a Financial Advisor. Investing remains the smartest way to prepare for the future.Have been working with ROCHELLE DUNGCA-SCHREIBER for 8years and I'm extremely pleased with the good returns. The good news is, it's never too late to start investing.
@graywilliams_77.
Жыл бұрын
Credits to ROCHELLE DUNGCA-SCHREIBER, she saw me through the process. You can glance her name up on your google and verify her yourself. she has years of financial market experience...
I really love your explanation. Your video is amazing. It makes me understand and memorize the lesson quickly. Hope to see your new video soon.
the way explain is awesome. Even many big shot professors are not able to make simplify as you do.
Really immaculate with your statements. True to the way of accounting stuff. I have to catch up on quite a few videos now!
You are needed...this video was needed champ! We might not deserve you but Thank You my boy 💎
This is by far the best video on financial ratios I have EVER seen. Splendid work👏👏👏
@AccountingStuff
9 ай бұрын
Thanks!!
Your video taught me more in 25 min, than my high school did in 4 years.
Thank you. I'm a little late discovering your video but they still helped. I'd been struggling at work with profit margins and turnover ratios as no one had ever explained how and where to get the information. The AP/AR turnover ratio was exactly what I needed to know to give better answers to my boss. So, thank you.
@AccountingStuff
18 күн бұрын
Great to hear you found it useful!
This is one of the most useful, crisp video on Fin ratios!
@AccountingStuff
Ай бұрын
Thanks! Glad you enjoyed it :)
Hi James, I recently came across your channel and loved your videos!! Big thank you for making them. Would you please make some videos explaining basic mobth end processes and secondary balance accounting such as BS reclass, funding, cost of carry etc?? Thanks.
Thank you. My current Business class basically just leaves us to read the chapter and take a test, I couldnt understand until I watched this
Thanks!!! This is a great refresher
wow wow wow this video was packed full of it, just got done making falsh cards of these all so i can lopok at them on the go and such. Thanks for the video!
Great videos and has helped me (a non finance guy) understand the concepts much better now. Is it possible for you to share some references or sources too in description that will help us further?
thank you. you saved my accounting course
Loved all your accounting videos mr. James. I've moved more into finance and I'm jack to the t its to see you made a video on statements.
@AccountingStuff
Жыл бұрын
No worries, all the best in your new role :)
Started watching your videos and I am already a fan, please keep up the quality content. 🙏
@accountingstuff7625
Жыл бұрын
⬆️
Thank you for this incredibly understandable video that helped me complete a financial analysis project I first found daunting with ease!
@AccountingStuff
4 ай бұрын
No problem!
This is good information. Thank you for making it available.
Thank you very much for creating this fantastic, amazing and formidable video!!!!! Super well explained and organized!!! It is a real treasure! Thanks!!!!
@AccountingStuff
Жыл бұрын
You're very welcome!
You are simply the best James, you are good at what you do, Gracias,
@accountingstuff7625
Жыл бұрын
⬆️✍️
love your work man and as an appreciation I purchased all the sheet even though am here only for general knowledge. amazing work that is helping big group of people of different generations/parts of the work ,,, all the best keep it up
@vtuscript
2 ай бұрын
Can we share please
Thanks for the much needed information ❤
Absolutely helpful! Thank you! Please consider making a video on Pro Forma statements 💪🔝🔝
Watching from Zambia and your channel has always been helpful. Thank you and keep up with the excellent content.
@charleskeanureevesjohn8596
Жыл бұрын
Nice one 👍
Very well explain and easy to understand it.
Thanks for the video. You just helped me pass my last financial analysist assignment and provided a great cheat sheets. I am a subscriber.
@AccountingStuff
8 ай бұрын
Congrats on passing your assignment!! All the best
This is just AWESOME :) Thank you!
Brilliant video! Thanks James :)
@accountingstuff7625
Жыл бұрын
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Thank you so much for all of your videos. This is better than Becker in my opinion.
Very informative. Thanks for sharing.
@AccountingStuff
Жыл бұрын
No worries, glad you found it useful :)
Excellent video. You have covered so much in a short video. Well explained and easy to follow and learn. Thank you.
@AccountingStuff
2 ай бұрын
Thanks, glad you enjoyed it!
This is beautiful and simple and wonderful and so well delivered
@AccountingStuff
Жыл бұрын
Cheers David!!
VERY USEFUL VIDEO!!!
I waited soo long for your updates Please upload frequently it is of great help
@accountingstuff7625
Жыл бұрын
⬆️
Great video for finance and accounting students
thank your so much mate, you ability to semplify things is nuts
Thank you! Well explaned and easy to understand.
@AccountingStuff
2 ай бұрын
Great to hear you found it useful :)
You a professional person who dip him self over long time on financial analysis
Amazing how you simplified Ratios in just 25 minutes
Omg , I was waiting for this video & your videos are very vivid & easy to understand. Thanks a million for the videos so far. I’m learning & I’m going to apply for jobs ( Assistant accountant, finance intern & accounts payable)
@AccountingStuff
Жыл бұрын
Best of luck in your job hunt!
Thank you , great one ❤God bless you
Thank you very much for this... excellent work
@AccountingStuff
Ай бұрын
You're very welcome :)
Hey James! I've been watching these accounting videos of yours from a long time now, and I've been really liking them. I want you to make some videos on the following topics (please as a request). 1. Books of original entry 2. Cashbook 3. Adjusted Cashbook 4. Capital & revenue expenses & incomes 5. Receipts 6. Control accounts 7. Source Documents 8. Errors I am requesting you as I really have understood all the topics only from your videos. P.S: I have my CAIE's so I really want help. Thank you! 0:38
@accountingstuff7625
Жыл бұрын
⬆️✍️
WOW!!! You are really good at explaining this.
@AccountingStuff
6 ай бұрын
Thanks!
amazingly summarized! thank you!
@AccountingStuff
8 ай бұрын
Thanks, glad you enjoyed it
Fabulous the way you taught It is mind blowing and I am dam sure that It will help me allot. THANKU SO MUCH
Love this!
Hi James, I learned so many things from your videos. Thank you! Could you please explain budget and types of budget?
@accountingstuff7625
Жыл бұрын
⬆️✍️
Hi James, I love your videos, they help me so much!. Please can you make some videos about auditing.?
your contents is life-saving for accounting students. Thanks a lot. Appreciation from Bangladesh 🇧🇩
@AccountingStuff
18 күн бұрын
No problem, happy to help :)
Good Morning James, Thanks for doing this video.
@AccountingStuff
6 ай бұрын
You are welcome
I really appreciate you for providing such useful stuff.🙏
@AccountingStuff
7 ай бұрын
You're most welcome :)
Thank you James. Ure the best. Help me out till i graduate
I can't wait to take accounting next quarter. I just finished macroeconomics. I hear everything is backwards in accounting though. I go to school for business we have to take accounting 1 and 2
Thank you so much for this. This was such a big help
@AccountingStuff
10 ай бұрын
No worries, glad I could help :)
was really helpful thanks
Thanks for the amazing content. Keep it up
@AccountingStuff
Жыл бұрын
Cheers Mohamed!
amazing video, visualized each concept. lovely.
@AccountingStuff
8 ай бұрын
Thanks, glad you enjoyed it!
THANK YOU!!
@accountingstuff7625
Жыл бұрын
⬆️
Great job! Keep it up .
@AccountingStuff
Жыл бұрын
Thanks!
You are an amazing Teacher Man. Keep up the good work
@AccountingStuff
6 ай бұрын
Thank you!
You’re awesome man, thank you for your videos.
@AccountingStuff
9 ай бұрын
My pleasure!
That is perfect,thanks bro.
Thanks 🙏 so happy 😀
thanks a lot man, this was a very useful video
@AccountingStuff
Ай бұрын
No problem! Glad you enjoyed it :)
This is gold for a student
This video was amazing … Thank you so much.
@AccountingStuff
4 ай бұрын
You're very welcome :)
A topic on intercompany accounting and related party transactions would be really nice
@accountingstuff7625
Жыл бұрын
⬆️✍️
Thanks for the amazing organized contents. While CCC= DSI+DSO- DPO, instead of plus all three of them...
@AccountingStuff
Жыл бұрын
You are correct! Sorry for the typo. I'll pin a comment to show this correction
@sepideabbasi8361
Жыл бұрын
Thanks for telling. I had the same problem.
Thank you James. It is clear and precise. Could you make a video on Intercompany accounting and transaction elimination
@accountingstuff7625
Жыл бұрын
⬆️
Amazing lesson!
@AccountingStuff
6 ай бұрын
Glad you enjoyed it :)
This video was so useful Thank you so much Best of luck 💎♥️👍
@AccountingStuff
Жыл бұрын
That's great to hear thanks!
Best accounting videos ❤❤❤
Hello, Thank you for the clear explanations! I had a question about ROA. In the video it is stated simply as the ratio of net income to total average assets. In my textbook, we saw it as ROA = EWI / Average Total Assets, where EWI is: EWI = Net Income + Interest Expense (1 - tax rate). I'm wondering which one is actually used in accounting in companies. Does it differ? Which one would you say is more correct or reliable? Thank you.
YOU ARE AMAZING!!!!
Great topic, thank you sir
@AccountingStuff
4 ай бұрын
Glad you enjoyed it :)
What I am gonna write is not a new compliment to this on any other video on this channel. However, here it goes. So, I think this channel needs to be mandatory in schools & teachers are not needed thank you😛 Also, I seriously regret not having KZread back then growing up. Its just so easy. You can pause, play, take notes and at the same time look for meanings & clarifications on a certain topic. You are making lives of students & professionals not just easy but also smart. Thanks a ton for existing......🥰
Thanx bro i literally needed to learn this for exam
@accountingstuff7625
Жыл бұрын
⬆️✍️
Simply outstanding.
@AccountingStuff
9 ай бұрын
Thanks!
Holy shit batman this is gold. Thank you for this video I was trying to find a KZread channel I could understand and many are way too hard to follow what they are saying.
thank you
thanks brother
Regarding the Cash Conversion cycle, shouldn´t the Days Payable outstanding be actually deducted from the Days sales of Inventory and Days sales outstanding?
@mikele7982
Жыл бұрын
Yeah, basically CCC measures how quick the company make investment and asset turn into cash! DSO, DIO is cash inflow while DPO is cash outflow. So DPO should be subtracted. Well he made errors here and there as well so it would be best to use it as a mini guide and figure out the meanings behind each ratio yourself.
Great explanation
@AccountingStuff
3 ай бұрын
Glad it was helpful!
Hi james thanks for this knowledge
@accountingstuff7625
Жыл бұрын
👆✍️
Thank You so much ❤
@AccountingStuff
7 ай бұрын
You're very welcome :)
Bro i am from India and by mistake I found your Yt channel but I think I got Great accounting Teacher ever ❤
@AccountingStuff
3 күн бұрын
Thanks, much appreciated :)
Amazing Content with beautiful Slideshow, James! I am wondering which software you use to record the video, specifically the map?? Thank you