Interpreting Financial Performance and Position

Calculate key profitability ratios (e.g., return on equity, ROCE, profit margins) from financial statements.

Calculate and interpret liquidity ratios (e.g., current ratio, quick ratio).

Calculate and interpret gearing and coverage ratios (e.g., debt-to-equity, interest cover).

Calculate and interpret efficiency ratios (e.g., asset turnover, inventory days, receivable days).

Calculate and interpret key investor ratios (e.g., EPS, P/E ratio, dividend yield).

Perform trend analysis and common-size analysis on financial statements to assess performance over time.

Apply ratio analysis to a set of financial statements and critically evaluate the limitations of the analysis.