Ratios and Interpretation

Interpret financial ratios

A company's financial performance can be assessed through ratio analysis. Once financial ratios have been calculated, interpret to ascertain if they are in line with targets, benchmarks, and expectations. Be aware of and responsive to the internal and external constraints to improve performance. Recognise the potential limitations of financial statement analysis to avoid productivity pitfalls.

Acquire new skills to demonstrate your proficiency:

• Financial statement analysis and the business model
• Common internal and external constraints
• Limitations of financial reporting information
• Limitations of ratio analysis

Gain practical experience

Use genuine examples such as case studies and scenarios to give you the skills to evaluate business performance and get a deeper understanding of various ways to improve business performance and align with organisation goals. Financial statement analysis can assist the decision-making process by focussing on the key indicators to remain a long-term, viable going concern.

This is a standalone course but if you’re interested in more of this type of learning while earning a designation, explore the CGMA® Finance Leadership Program.