Financial Statement Analysis – Ratio Analysis

Short Description

Horizontal analysis, vertical analysis, ratio analysis-liquidity & efficiency, solvency, profitability, & market ratios


Learn tools to analyze financial statements, including vertical analysis, horizontal analysis, and ratio analysis.

This course will provide resources such as downloadable PDF files and preformatted Excel spreadsheet to help understand and apply the concepts.

We will list and describe the tools for financial statement analysis, including vertical analysis, horizontal analysis, and ratio analysis.

Below is more detail about the concepts we will learn.

This course will help us understand, calculate, and analyze horizontal analysis. Horizontal analysis is used to compare financial data and performance of a company across time and is a common and intuitive form of analysis.

We will explain, calculate, and analyze vertical analysis. Vertical analysis also termed common size financial statements, displays all items as percentages of a common base figure instead of absolute numbers. Vertical analysis is very useful to compare financial statements for companies of different sizes.

The course will list and describe the categories of ratio analysis. Ratio analysis is a common form of financial statement analysis used to obtain a quick indication of a business’s financial performance in different areas. Ratios are often grouped into categories, including liquidity ratios, solvency ratios, profitability ratios, and market prospects ratios.

We will describe liquidity and efficiency ratios. We will list liquidity and efficiency ratios, perform calculations, and analyze their use.

The course will examine solvency ratios, listing solvency ratios, calculating solvency ratios, and analyzing their use.

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