Modules for Investors
Fundamental Analysis
The use of Fundamental Analysis
3. Fundamental analysis vs technical analysis
4. Annual Report: The Backbone of Fundamental Analysis
Should I do fundamental analysis of a stock?
5. Reading profit and loss statements - terms and meaning
6. How to Analyze a Profit and Loss (P&L) Statements
3 important P&L ratios
7. How to Read & Understand a Balance Sheet
8. Analysing the balance sheet - key ratios, calculations
3 important balance sheet ratios
9. Analysing Cash Flow Statements - Basics, Format & Calculations
10. How Fundamental Analysis can Help You Improve your Finances
3 important cash flow ratios
What You Should Know About Glossary of 20 Numbers and Ratios
Translate the power of knowledge into action. Open Free* Demat Account
Modules for Investors
Fundamental Analysis
- 1. Introduction to Fundamental Analysis
- 2. A Perfect Guide to Fundamental Analysis
-
The use of Fundamental Analysis
- 3. Fundamental analysis vs technical analysis
- 4. Annual Report: The Backbone of Fundamental Analysis
-
Should I do fundamental analysis of a stock?
- 5. Reading profit and loss statements - terms and meaning
- 6. How to Analyze a Profit and Loss (P&L) Statements
-
3 important P&L ratios
- 7. How to Read & Understand a Balance Sheet
- 8. Analysing the balance sheet - key ratios, calculations
-
3 important balance sheet ratios
- 9. Analysing Cash Flow Statements - Basics, Format & Calculations
- 10. How Fundamental Analysis can Help You Improve your Finances
-
3 important cash flow ratios
- What You Should Know About Glossary of 20 Numbers and Ratios
Translate the power of knowledge into action. Open Free* Demat Account
3 important balance sheet ratios
01:15 Mins Read
The balance sheet of a company holds a lot of useful information. You can even calculate some very important ratios using the metrics in the balance sheet.
Transcript
3 Important Balance Sheet Ratios Here’s a quick look at 3 important balance sheet ratios. First, we have the current ratio. This ratio is calculated by dividing the current assets by the current liabilities. It shows the company’s ability to pay back its short-term liabilities. Next, let’s look at the debt equity ratio. This ratio is calculated by dividing the total liabilities by the shareholders equity. It reflects the ability of the shareholders’ equity to cover all the outstanding debts in the case of a decline in the business. Lastly, let’s look at the debt-to-assets ratio. It is the ratio of the total debt to the total assets. This number shows the degree to which a company has used its debts to finance its assets. These ratios, combined with P&L ratios, help you with fundamental analysis. The cash flow statement that a company prepares is also important We’ll learn more about this statement in the coming chapter.
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