Course Description

Financial ratios can be extremely valuable tools for CPAs to analyze an organization’s financial and operational position. “Financial Ratio Analysis for CPAs” will discuss the key stakeholders who rely on financial ratios and walk through the four general categories: Liquidity ratios, profitability ratios, leverage ratios, and activity ratios. The course will show how to calculate highly relevant ratios under each category, discuss how to use various benchmarks, and explain how CPAs can use these calculations to aid in identifying opportunities and risks. 

Learning Objectives

• Recognize the key stakeholders who benefit from specific types of financial ratio calculations.
• Identify financial ratio benchmarks utilized when analyzing financial ratio calculations.
• Identify the four financial ratio categories and their purpose.
• Identify how to calculate specific ratios within the financial ratio categories.

Prerequisites

• A basic understanding of financial statement accounts.