Financial ratios give business owners a means to assess their company's performance and contrast it with that of other companies in the same sector. Ratios assess the connection between two or more financial statement elements. When data from many time periods are compared, they are most useful.
There are several standard ratios that are frequently used in accounting to assess the overall financial health of a firm or other entity.
Financial ratios has gained immense popularity across the globe resulting in huge demand for certified professionals.
Who should take the Financial Ratios Exam?
Finance managers, senior executives, executives
Anyone looking for finance jobs.
Student pursuing courses like CA, CFA,CPA, ACCA, CIMA, MBA Finance or Finance Graduate
Investment Professional /Banker
Small and medium business owner
Startup founder or retail investor
Skills Required
Basic Accounting Knowledge
Mathematical & Analytical Skills
Understanding of Financial Ratios
Financial Statement Analysis
Critical Thinking & Business Judgment
Financial Ratios Certification Course Outline
Module 1: Introduction to Financial Ratios
What are financial ratios and why are they important?
Overview of ratio categories
How ratios support business and investment decisions
Limitations and best practices in using ratios
Module 2: Reviewing Financial Statements
Structure and key components of the income statement
Understanding the balance sheet and cash flow statement
Extracting relevant data for ratio analysis
Common adjustments and normalization practices
Module 3: Liquidity Ratios
Current Ratio
Quick Ratio (Acid-Test)
Working Capital
What liquidity ratios reveal about short-term financial health
Sample scenarios and calculations
Module 4: Profitability Ratios
Gross Profit Margin
Operating Profit Margin (EBIT Margin)
Net Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)
Assessing operational performance using profitability ratios
Module 5: Solvency (Leverage) Ratios
Debt-to-Equity Ratio
Debt Ratio
Interest Coverage Ratio (Times Interest Earned)
Implications for long-term financial stability and risk
Case study: Assessing solvency in a debt-heavy company
Module 6: Efficiency (Activity) Ratios
Inventory Turnover
Accounts Receivable Turnover
Asset Turnover Ratio
Days Sales Outstanding (DSO)
Measuring how well a company uses its assets
Module 7: Market Valuation Ratios (For Public Companies)
Price-to-Earnings (P/E) Ratio
Price-to-Book (P/B) Ratio
Earnings Per Share (EPS)
Dividend Yield and Payout Ratios
Market-based evaluation of company value and performance
Module 8: Interpreting and Comparing Ratios
Benchmarking: industry standards and competitors
Trend analysis: comparing ratios over time
Identifying strengths, weaknesses, and warning signs
Ratio analysis for strategic decision-making
Module 9: Real-World Ratio Analysis Exercises
Analyzing real or mock company data
Applying multiple ratios to assess performance
Writing brief reports summarizing financial health
Hands-on Excel-based calculation practice
Module 10: Practice Exam & Final Assessment
Section A: Multiple choice questions on formulas and theory
Section B: Data interpretation based on financial statements
Section C: Ratio calculations with analysis questions
Section D: Case study with full company ratio assessment
Scoring feedback and review session
Exam Format and Information
Certification name – Certificate in Financial Ratios
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees - INR 1199
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