Profitability Ratio
Analysis:
Financial Ratio Analysis Explained
Improve the
Returns on
Your Business, Investments or Grades with this easy-to-follow but comprehensive lecture on profitability ratio analysis.
Within this 30-min tutorial, we cover the following profitability financial ratios:
1)
The Profit Margin
2) The
Gross Profit Margin (aka Gross Profit Percentage)
3)
The Return on Assets (
ROA)
4) The Return on
Equity (
ROE)
Within each Ratio
Section, we review:
a)
The Formula (plus an example)
b) Where to
Find the Required
Data Inputs
c) How to
Interpret the
Results
d) Drawbacks of the Ratio
All Ratios
Covered are based on
Profitability Analysis and assessing the Financial
Performance of a
Business. Each different Ratio explained in this tutorial has a unique angle on how to
Analyse the Profitability of a specific business.
These ratios are based on accounting theory and make use of financial statements. Ratio Analysis (along with horizontal analysis and vertical analysis) forms part of fundamental financial statement analysis.
Using the
Income Statement and
Balance Sheet you can use Ratio Analysis to gain an insight into the business that is otherwise unavailable from the static
Financial Statements.
Turn accounting data into Valuable &
Actionable Information with Financial Ratio Analysis.
Watch this tutorial now, listen again later & share this mini-lecture anytime! You too can understand how to Use & Apply profitability Ratio Analysis in your accounting study or personal stock investment strategy.
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- published: 31 Mar 2015
- views: 5928