SlideShare a Scribd company logo
1 of 23
FINANCIAL STATEMENT ANALYSIS BY SYED MUHAMMAD IJAZ, FCA AUGUST 03, 2007
TYPES OF RATIOS ,[object Object],[object Object],[object Object],[object Object]
CURRENT RATIO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acid-Test or Quick Ratio ,[object Object],[object Object],[object Object],[object Object]
Turnover Ratio-Inventory Turnover ,[object Object],[object Object],[object Object],[object Object],[object Object]
Turnover Ratio-Debtors Turnover ,[object Object],[object Object],[object Object],[object Object]
Creditors Turnover Ratio ,[object Object],[object Object],[object Object],[object Object]
Defensive-Interval Ratio ,[object Object],[object Object]
Leverages-Debt-Equity Ratio ,[object Object],[object Object],[object Object],[object Object]
Leverages-Interest Coverage Ratio ,[object Object],[object Object],[object Object]
Dividend Coverage Ratio ,[object Object],[object Object],[object Object]
Total Coverage Ratio ,[object Object],[object Object],[object Object]
Profitability Ratio ,[object Object],[object Object]
Profitability-Expenses Ratio
Profitability-Expenses Ratio-Continued Represented as a %age to Net Sales Lesser the margin/%age better it is
PROFITABILITY RATIOS RELATED TO INVESTMENTS-RETURN ON INVESTMENTS(ROI)
RETURN ON CAPITAL EMPLOYED
EARNING PER SHARE
DIVIDEND YIELD
DIVIDEND PAYOUT or
ACTIVITY RATIO ,[object Object],[object Object]
CURRENT ASSETS TURNOVER ,[object Object],[object Object]
CURRENT ASSETS TURNOVER-CONTINUED

More Related Content

What's hot

What's hot (20)

Activity ratio or turnover ratio by deepak madan
Activity ratio or turnover ratio by deepak madanActivity ratio or turnover ratio by deepak madan
Activity ratio or turnover ratio by deepak madan
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Turnover ratios 1
Turnover ratios 1Turnover ratios 1
Turnover ratios 1
 
Profitability ratios
Profitability ratiosProfitability ratios
Profitability ratios
 
Ratio analysis ppt @ bec doms bagalkot mba
Ratio analysis ppt @ bec doms bagalkot mbaRatio analysis ppt @ bec doms bagalkot mba
Ratio analysis ppt @ bec doms bagalkot mba
 
Financial Ratios - Introduction to Profitability Ratios
Financial Ratios - Introduction to Profitability RatiosFinancial Ratios - Introduction to Profitability Ratios
Financial Ratios - Introduction to Profitability Ratios
 
Formulae and Ratio Analysis
Formulae and Ratio AnalysisFormulae and Ratio Analysis
Formulae and Ratio Analysis
 
Profitability ratios
Profitability ratiosProfitability ratios
Profitability ratios
 
Financial Ratios
Financial  RatiosFinancial  Ratios
Financial Ratios
 
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
Meeting 3 - Profitability Ratios (Financial Reporting and Analysis)
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Accounting ratios analysis
Accounting ratios analysis Accounting ratios analysis
Accounting ratios analysis
 
Financial ratios and their use in understanding Financial Statements
Financial ratios and their use in understanding Financial StatementsFinancial ratios and their use in understanding Financial Statements
Financial ratios and their use in understanding Financial Statements
 
Financial Ratio
Financial RatioFinancial Ratio
Financial Ratio
 
Ratio Analysis
Ratio AnalysisRatio Analysis
Ratio Analysis
 
Leverage ratios
Leverage ratiosLeverage ratios
Leverage ratios
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Accounting Ratios
Accounting RatiosAccounting Ratios
Accounting Ratios
 
Investment Valuation Ratios
Investment Valuation RatiosInvestment Valuation Ratios
Investment Valuation Ratios
 

Viewers also liked (8)

Ratio Analysis
Ratio AnalysisRatio Analysis
Ratio Analysis
 
Venture Capital vs. Angel Investors
Venture Capital vs. Angel Investors Venture Capital vs. Angel Investors
Venture Capital vs. Angel Investors
 
ANGEL INVESTOR VS VENTURE CAPITAL
ANGEL INVESTOR VS VENTURE CAPITALANGEL INVESTOR VS VENTURE CAPITAL
ANGEL INVESTOR VS VENTURE CAPITAL
 
Profitability Ratios
Profitability RatiosProfitability Ratios
Profitability Ratios
 
How to analyze profitability
How to analyze profitabilityHow to analyze profitability
How to analyze profitability
 
22.6 Profitability Ratios
22.6 Profitability Ratios22.6 Profitability Ratios
22.6 Profitability Ratios
 
Angel Investors
Angel InvestorsAngel Investors
Angel Investors
 
Interpreting Accounts: Profitability Ratios
Interpreting Accounts: Profitability RatiosInterpreting Accounts: Profitability Ratios
Interpreting Accounts: Profitability Ratios
 

Similar to Financial Statement Analysis Lecture1 1

R C F,Prashant V V
R C F,Prashant V VR C F,Prashant V V
R C F,Prashant V V
pachhya
 
Ratio Analysis
Ratio AnalysisRatio Analysis
Ratio Analysis
Dharan178
 
Ratio Analysis Ppt
Ratio Analysis PptRatio Analysis Ppt
Ratio Analysis Ppt
Mobasher Ali
 
22244718ratioanalysisppt 12638286824297-phpapp02
22244718ratioanalysisppt 12638286824297-phpapp0222244718ratioanalysisppt 12638286824297-phpapp02
22244718ratioanalysisppt 12638286824297-phpapp02
Amar Singh
 
Financial management
Financial managementFinancial management
Financial management
Dharmik
 
C:\Fakepath\44 Ratio Analysis 1
C:\Fakepath\44 Ratio Analysis 1 C:\Fakepath\44 Ratio Analysis 1
C:\Fakepath\44 Ratio Analysis 1
guestb31b11
 
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docx
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docxRatios and Formulas in Customer Financial AnalysisFinancial stat.docx
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docx
catheryncouper
 

Similar to Financial Statement Analysis Lecture1 1 (20)

Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
R C F,Prashant V V
R C F,Prashant V VR C F,Prashant V V
R C F,Prashant V V
 
Financial analysis for juhayna & domty co . graduation project zagzig uni...
Financial analysis for juhayna & domty co . graduation project zagzig uni...Financial analysis for juhayna & domty co . graduation project zagzig uni...
Financial analysis for juhayna & domty co . graduation project zagzig uni...
 
Financial ratios
Financial ratiosFinancial ratios
Financial ratios
 
Ratio Analysis
Ratio AnalysisRatio Analysis
Ratio Analysis
 
Cost and management accounting
Cost and management accountingCost and management accounting
Cost and management accounting
 
Ratio Analysis Ppt
Ratio Analysis PptRatio Analysis Ppt
Ratio Analysis Ppt
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Ratio Analysis SHort.pptx college presentation
Ratio Analysis SHort.pptx college presentationRatio Analysis SHort.pptx college presentation
Ratio Analysis SHort.pptx college presentation
 
18 ratio analysis_theory
18 ratio analysis_theory18 ratio analysis_theory
18 ratio analysis_theory
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
22244718ratioanalysisppt 12638286824297-phpapp02
22244718ratioanalysisppt 12638286824297-phpapp0222244718ratioanalysisppt 12638286824297-phpapp02
22244718ratioanalysisppt 12638286824297-phpapp02
 
Ratio analysis advantages and limitations (Complete Chapter)
Ratio analysis advantages and limitations (Complete Chapter)Ratio analysis advantages and limitations (Complete Chapter)
Ratio analysis advantages and limitations (Complete Chapter)
 
Financial management
Financial managementFinancial management
Financial management
 
C:\Fakepath\44 Ratio Analysis 1
C:\Fakepath\44 Ratio Analysis 1 C:\Fakepath\44 Ratio Analysis 1
C:\Fakepath\44 Ratio Analysis 1
 
Ratio analysis
Ratio analysisRatio analysis
Ratio analysis
 
Liquidity Ratio | Accounting
Liquidity Ratio | AccountingLiquidity Ratio | Accounting
Liquidity Ratio | Accounting
 
Cash Coverage | Finance
Cash Coverage | FinanceCash Coverage | Finance
Cash Coverage | Finance
 
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docx
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docxRatios and Formulas in Customer Financial AnalysisFinancial stat.docx
Ratios and Formulas in Customer Financial AnalysisFinancial stat.docx
 
UNIT-2 Ratio.pptx
UNIT-2 Ratio.pptxUNIT-2 Ratio.pptx
UNIT-2 Ratio.pptx
 

More from Muhammad Ijaz Syed

Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2
Muhammad Ijaz Syed
 

More from Muhammad Ijaz Syed (20)

Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908Jurisdiction of courts under cpc 1908
Jurisdiction of courts under cpc 1908
 
Audit the practical side
Audit the practical sideAudit the practical side
Audit the practical side
 
Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017Benamitransactions(prohibition)act2017
Benamitransactions(prohibition)act2017
 
Aml 2010 benami_2017_taxbar
Aml 2010 benami_2017_taxbarAml 2010 benami_2017_taxbar
Aml 2010 benami_2017_taxbar
 
ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010 ANTI-MONEY LAUNDERING ACT, 2010
ANTI-MONEY LAUNDERING ACT, 2010
 
PROVINCIAL SALES TAX ON SERVICES ACTS
PROVINCIAL SALES TAX ON SERVICES ACTSPROVINCIAL SALES TAX ON SERVICES ACTS
PROVINCIAL SALES TAX ON SERVICES ACTS
 
Finance act 2016 lcci
Finance act 2016 lcciFinance act 2016 lcci
Finance act 2016 lcci
 
Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976Employees' Old age Benefit Act, 1976
Employees' Old age Benefit Act, 1976
 
Public procurement rules 2004
Public procurement rules 2004Public procurement rules 2004
Public procurement rules 2004
 
CORPORATIZATION
CORPORATIZATIONCORPORATIZATION
CORPORATIZATION
 
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
Finance bill 2015 16_Changes Proposed in Sales Tax Act, 1990
 
Sales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and ChargeabilitySales Tax Act, 1990 Scope and Chargeability
Sales Tax Act, 1990 Scope and Chargeability
 
Catalytic mechanism_turninggoalsintoresults
Catalytic mechanism_turninggoalsintoresultsCatalytic mechanism_turninggoalsintoresults
Catalytic mechanism_turninggoalsintoresults
 
Shared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcingShared Service Centers - A way of internal outsourcing
Shared Service Centers - A way of internal outsourcing
 
Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)Interpretation of Statutes (English Law)
Interpretation of Statutes (English Law)
 
Bullet Points Budget 2010 11
Bullet Points Budget 2010 11Bullet Points Budget 2010 11
Bullet Points Budget 2010 11
 
Taxation Of Derivatives
Taxation Of DerivativesTaxation Of Derivatives
Taxation Of Derivatives
 
Transfer Pricing
Transfer PricingTransfer Pricing
Transfer Pricing
 
Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2Risk And Uncertainty Lecture 2
Risk And Uncertainty Lecture 2
 
Analysis Of Leverage
Analysis Of LeverageAnalysis Of Leverage
Analysis Of Leverage
 

Financial Statement Analysis Lecture1 1