Various financial ratios of different items on the financial statements help analyze and determine the financial condition of the enterprise.

There are many ratios that can be calculated to help the manager understand the condition and make decisions for the company.
Some of these ratios are:

•  Return on Assets (ROA)


•  Return on Equity (ROE)


•  Operating Margin


•  Profit Margin


•  Current Ratio


•  Quick Ratio


•  Days Receivable Outstanding


•  Days Payable


•  Inventory Turnover


•  Debt to Equity Ratio


•  Debt to Assets


•  Book Value


•  Earnings Per Share


•  Book Value Per Share

The module covers all of the ratios in sufficient detail for the manager to understand the calculation and use the information to make decisions.

The module includes exercises to calculate each financial ratio from the information on the various financial statements.