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  1. Courses
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  3. Financial Analysis and Ratio Interpretation

Financial Analysis and Ratio Interpretation

This course teaches students how to evaluate financial performance using key ratios and analysis frameworks.

Michael McDonald
Michael McDonald
Business | core | 9 hours |   Published: Oct 2025

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Overview

1KSTUDENTS*
95.5%RECOMMEND*

This course includes:

  • On-demand videos
  • Practice assessments
  • Multiple hands-on learning activities
  • Exposure to a real-world project
  • 100% self-paced learning opportunities
  • Certification of completion

This course teaches students how to evaluate financial performance using key ratios and analysis frameworks. Beginning with profitability and return metrics, learners will assess how companies generate and retain earnings. They will then explore liquidity, efficiency, and working capital ratios to assess operational effectiveness and short-term solvency. The final module introduces capital structure analysis, coverage ratios, and benchmarking techniques. The course equips learners with the tools to critically interpret financial statements and identify strengths, weaknesses, and risks in business performance. 

Skills You Will Gain

Profitability
Liquidity Risk
Efficiency
Benchmarking
Assessment

Learning Outcomes (At The End Of This Program, You Will Be Able To...)

  • Analyze profitability and return metrics using income statement and balance sheet data. 
  • Evaluate liquidity, efficiency, and working capital ratios to assess operational health. 
  • Assess capital structure, interest coverage, and industry benchmarks to identify financial risk. 

Prerequisites

Basic knowledge of financial statements (income statement, balance sheet, cash flow statement) and basic accounting principles will be helpful. Familiarity with Excel or other data analysis tools will also enhance the learning experience.

Who Should Attend

This course is ideal for finance professionals, business analysts, and aspiring financial analysts seeking to strengthen their skills in financial statement analysis. It is also suitable for individuals who want to understand how to evaluate business performance and identify operational or financial risks through ratio analysis.

Curriculum

Instructors

*Where courses have been offered multiple times, the “# Students” includes all students who have enrolled. The “%Recommended” shown is also based on this data.
1Chapter 1: Profitability Metrics and Margins
2Chapter 2: Return Ratios and ROIC
3Chapter 3: DuPont Decomposition
4Chapter 4: Liquidity Ratios and Stress Testing
5Chapter 5: Efficiency Ratios and Asset Utilization
6Chapter 6: Working Capital and the Cash Conversion Cycle
7Chapter 7: Capital Structure and Leverage Ratios
8Chapter 8: Interest Coverage and Credit Risk
9Chapter 9: Trend and Peer Benchmark Analysis

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Segment 00: Welcome to the Course: Course Overview

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Michael McDonald

Michael McDonald

With over a decade of expertise in finance and economics, supported by a PhD in Finance and extensive teaching experience at Fairfield University, he is committed to delivering in-depth insights into financial accounting, analysis, and business valuation. His academic journey is distinguished by numerous publications on topics ranging from stock returns to bond market dynamics, reflecting a profound understanding of global financial markets. Renowned for his dynamic teaching style, he seamlessly blends theoretical concepts with real-world applications. He has taught a diverse range of courses, from foundational investments to advanced project analysis and factor-based investing, consistently crafting tailored coursework to enhance student learning outcomes. His professional background as a municipal bond trader and senior editor at Seeking Alpha brings practical insights and industry relevance to his instruction. This unique blend of academic rigor and real-world expertise equips students with critical analytical skills, empowering them to navigate today’s complex financial landscape with confidence. Passionate about knowledge dissemination, he excels in both traditional and e-learning environments, fostering an engaging and transformative learning experience. His courses are meticulously designed to make complex financial concepts accessible and actionable, bridging the gap between theory and practice. With a dedication to inspiring the next generation of finance professionals, he remains a trusted mentor and thought leader in the field.
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You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!

You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!

You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!

You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!

You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!

You need to enroll in this course to access the curriculum. Click 'Enroll' to get started!