You identify and calculate the major categories of ratios for assessing the financial performance and position of a business. You define, calculate and interpret key financial ratios in terms of profitability, liquidity and solvency. You prepare a common-sized analysis as well a trend analysis. You understand ratings from major different institutions worldwide. You use Excel in a professional manner to analyse data and make conclusions based on statistical analysis. You apply the knowledge to a case company. You will be able to discuss the results and improve your analytical skills.
Starting level and linkage with other courses
ACC3LF101 or equivalent introductory course to accounting.
formulas for the ratios: profitability, liquidity cycle and solvency
interpreting key ratios by comparison in words
key ratio indicators by business field using a median indicator and combination ratios
descriptive statistics, correlation, regression and trend analysis
cross tabulations and graphical presentation
Assessment criteria - grade 1
- Knowledge: You know the key concepts within the course’s scope, but are yet to develop the general view and the big picture of the subject matter.
- Skills: - You can complete given tasks and assignments with assistance. You need to develop how to apply knowledge.
- Competence: You demonstrate some ability to perform skills and have basic knowledge, but you have difficulty to manage without assistance
Assessment criteria - grade 3
- Knowledge: You know the key concepts well and can explain how the theories and models function and the tools are used. You have a general view of the subject matter.
- Skills: You complete given tasks and assignments independently. You apply knowledge in hands-on business related situations. You can critique your own practice and identify ways to improve.
- Competence: You demonstrate sufficient ability to perform skills and have basic to good knowledge. You can perform independently, but you have some challenges in passing on your skills and knowledge to others. You have an interest in professional development.
Assessment criteria - grade 5
- Knowledge: You have a strong command of the key and related concepts. You can critically evaluate theories, models and tools. You can demonstrate explicit knowledge of the subject matter, and how it relates to other disciplines.
- Skills: You apply knowledge in demanding business related situations. You can prioritize and critically select tools and methods for solving complex problems in the subject matter.
- Competence: You execute skills with natural proficiency and you have detailed and explicit knowledge. You can perform independently and you are also able and actively willing to help others develop and pass on your skills. You have an attitude of continuous professional development.