Financial Ratio Analysis – I FINANCEWALK

Financial Ratio Analysis – I

In this chapter, we’ll cover What is Ratio Analysis, Users of Financial Analysis, Types of Comparison and different Types of Ratios.

[S3VIDEO file=’https://www.financewalk.com/videos/Financial Ratio Analysis-I.mp4′]
  • BalaKumar B says:

    I have a doubt..how to calculate ROCE…i know how to calculate..but i try to apply in real time the ans is not good..can you give me a real example with profit and loss statement?.and give me a comparission of current year and previous yr roce ?

  • ganesh says:

    Can you pls elaborate on how the Fixed Int cov ratio helps to evaluate the exact time when the repayment of debt shud commence and also how the payback period can be arrived at by using this ratio?

  • ganesh says:

    1) Can you pls elaborate on the rationale for inclusion of DTL (quasi equity) in Equity (DE Ratio)

    2) And also pls elaborate on your explanation of Book value of equity often being understated and how that impacts the DE Ratio….Sorry didnt get that.

    • Avadhut says:

      1. What is DTL?

      2. Book value of equity is nothing but net worth of company.

      I did not get your question clearly.

      • ganesh says:

        Sorry, I meant Deferred Tax Liability….and my question was why it is a part of Equity and not Debt?

        • Avadhut says:

          Hi Ganesh,
          Deferred income taxes are the most typical quasi-equity account for companies. Until the taxes are paid to the government, the funds belong to the shareholders and the shareholders expect to earn a return on these funds. So it’s treated as quasi-equity.

  • Narayanan says:

    The link was good

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