Professional Certificate in Understanding The Financial Ratios and its Various Types

The programme is available in 2 duration modes:

2 months (Standard mode)

1 month (Fast-track mode)

Online

In order to apply you should have either:

The program operates on an open enrollment basis, and there are no specific entry requirements. Individuals with a genuine interest in the subject matter are welcome to participate.

1. Introduction to Financial Ratios:
   - Overview of financial ratios and their importance in financial analysis.
   - Different categories of financial ratios: liquidity ratios, profitability ratios, solvency ratios, and activity ratios.
   - Calculation and interpretation of common financial ratios.

2. Liquidity Ratios:
   - Current ratio: measures a company's ability to cover short-term liabilities with short-term assets.
   - Quick ratio: assesses a company's ability to meet short-term obligations using its most liquid assets.
   - Cash ratio: evaluates a company's ability to pay off current liabilities with its cash and cash equivalents.

3. Profitability Ratios:
   - Gross profit margin: measures the profitability of a company's core operations.
   - Net profit margin: indicates the percentage of revenue that translates into net income.
   - Return on assets (ROA): assesses how efficiently a company uses its assets to generate profit.

4. Solvency Ratios:
   - Debt-to-equity ratio: measures the proportion of debt financing relative to equity financing.
   - Interest coverage ratio: evaluates a company's ability to meet interest payments on its debt.
   - Debt ratio: indicates the percentage of a company's assets financed by debt.

5. Activity Ratios:
   - Inventory turnover ratio: assesses how quickly a company sells its inventory.
   - Accounts receivable turnover ratio: measures the effectiveness of a company's credit and collection policies.
   - Asset turnover ratio: evaluates the efficiency with which a company uses its assets to generate sales.

6. Case Studies and Practical Applications:
   - Analyzing real-world financial statements and applying various financial ratios to assess performance and make informed decisions.
   - Interpreting financial ratios in different industries and contexts.
   - Identifying trends, strengths, and weaknesses based on financial ratio analysis.

7. Limitations and Caveats of Financial Ratios:
   - Understanding the limitations of financial ratios and their potential pitfalls.
   - Recognizing external factors that may impact the interpretation of financial ratios.
   - Exploring additional financial analysis techniques to complement ratio analysis.

8. Financial Reporting and Disclosures:
   - Familiarization with financial statements and their components (balance sheet, income statement, cash flow statement).
   - Understanding the role of financial disclosures and footnotes in providing additional context to financial ratios.
   - Analyzing financial reports to extract relevant information for ratio analysis.

 

Assessment is via assignment submission

The fee for the programme is as follows:

1 month (Fast-track mode) - £140

2 months (Standard mode) - £90

Please find below available fee payment plans:

1 month (Fast-track mode) - Fee £140

• The programme is awarded by London School of International Business. This program is not intended to replace or serve as an equivalent to obtaining a formal degree or diploma. It should be noted that this course is not accredited by a recognised awarding body or regulated by an authorised institution/ body.