Financial Accounting Reading: Analyzing Financial Statements

Name: Financial Accounting Reading: Analyzing Financial Statements (English version)
SKU: 5056

V.G. Narayanan; Suraj Srinivasan

Product #:5056

Supplier:Harvard Business School

Discipline:Accounting

Details:Article (PDF) • 37 pages • 2017-04-11

Subjects:

Accounting Financial analysis Finance and investing Finance and investing Accounting

Industries:

Goods, trade, and consumer services

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$22.04

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Core Curriculum Readings in Financial Accounting cover the fundamental concepts in financial accounting. Many Readings include videos and Interactive Illustrations to help students master complex concepts.This reading helps students understand that financial ratios-one financial statement item divided by another-are used to create useful metrics. In other words, the inputs or financial items are derived from the financial statements. The reading also shows how ROE is calculated using three ratios: profit margin, operation efficiency, and financial leverage.This Reading includes six Interactive Illustrations: DuPont Framework, Efficiency Ratios, Inventory Turnover and Days in Inventory, Cash Conversion Cycle, Leverage Ratios, and Profitability Ratios.

Learning Objectives

1. Use ratios to express a deeper understanding of the business. 2. Use the DuPont framework to drill down into the components that impact ROE. 3. Know the limitations of using ratios as tools of financial analysis.