In this tutorial, we will learn what is Ratio Analysis along with step by step instructions to calculate financial ratios.
This is the 1st Part of our most comprehensive Ratio Analysis video series comprising of 33 videos. We have attempted to go beyond the conventional jargons in this extensive guide and instead focused on practical financial statement analysis used by Investment Bankers and Equity Research Analysts. In addition, using the Colgate Case Study, we have calculated Ratios in Excel from scratch (financials from 2016 to 2020).
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What is Ratio Analysis?
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Ratio analysis is a type of financial statement analysis that involves quantitative interpretation of a company’s financial performance in different areas. It gives insightful information on the company’s profitability, solvency, operational efficiency, and liquidity positions, as reflected by financial statements.
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What you need to do?
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Step 1: Download the Colgate Excel Model Ratio Analysis Template. This template will be used for the analysis. You can download the ratio analysis template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/
Step 2: Please note that we are providing you with downloadable and preformatted Excel spreadsheets to assist you in understanding and applying the concepts. You will receive two templates: 1) Unsolved Colgate Model 2) Completed Colgate Model
Step 3: Start by using the “Unsolved Colgate Model Template” for analysis by following the instructions step by step.
Step 4: Good Luck! 🙂
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To know more about Ratio Analysis in Finance, you can go to this link:
https://www.wallstreetmojo.com/ratio-analysis/
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