Financial ratios

Quickly make sense of the numbers in the financials

Once you learn how to gauge a company's performance and health using key ratios, those overwhelming financial numbers won't hold you back anymore because you'll be able to quickly zero in on the numbers that actually matter.

All you need is basic math and a little common sense.

Profit Margin

Profit Margins : The key to reading a company's story, understanding its pricing power, and decoding its core competitiveness from the income statement

This number tells a story. It shows you if the company has 'pricing power' and helps you spot its 'core competitive edge' just by reading the P&L.

Profit Margin

ROE and ROA : Judging a company's efficiency and quality, is your money actually being put to good use?

These measure efficiency and quality. They basically answer the question: Is management actually any good at putting your money to work?

Profit Margin

Is a higher 'Dividend Yield' always better? Watch out for high-yield traps and understand what dividends really are.

Is higher always better? Not necessarily. A super-high yield can be a red flag. You need to understand the nature of that dividend first.

Corporate Finance
  • Courses

Corporate Finance

Learn the fundamentals of corporate finance, including cash flows, valuation, and capital budgeting.

Profit Margin

How do you read 'Free Cash Flow' ? Why seeing a negative number sometimes isn't a bad thing.

How should you read this one? A negative number isn't always a bad thing. In some cases, it's actually acceptable.

Profit Margin

Is a high 'Debt Ratio' always dangerous? You also have to look at their ability to pay it back.

Not just that. You also have to look at their ability to pay off that debt.

Profit Margin

What are the 'Current Ratio and Quick Ratio' ? Think of them as the 'Financial first aid kit' for a company's ability to pay debts.

Think of these as the company's 'financial first-aid kit' for paying its short-term bills.

Introduction to Financial Accounting
  • Courses

Introduction to Financial Accounting

Master the technical skills needed to analyze financial statements and make informed business decisions.

There is still plenty more to learn

Learning how to value a company is just the first step. You also need a solid investment mindset and a way to spot great companies. Don't worry, we have all of that covered for you.

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