In this series, Evaluating Financial Performance, two very important tools for evaluating financial statements, Ratio Analysis & Funds Flow Analysis, are explained.
Module 1 – Ratio Analysis
What are Ratios, their significance to interested parties and how to read them in conjunction with each other, form the basis of this video. Dr. Lamba explains at length the various ratios that need to be worked out in order to establish the profitability, stability, and efficiency of an organization.
Module 2 – Ratio Analysis – Cases
Cases illustrating how to re-arrange financial data in a form suitable for ratio analysis, and also how to create financial statements with the help of ratios are covered in this module.
Module 3 – Funds Flow Analysis How to Make Funds Flow Statements
A Funds Flow Statement provides insights into the functioning of an organization, which may not be apparent from a reading of the Balance Sheet alone. Using a case, Dr Lamba explains how to interpret each figure and how financial statements can be made to look attractive, till studied in depth and relevant questions asked.
Module 4 – Funds Flow Analysis How to Read Funds Flow Statements
Every organization must prepare a Funds Flow Statement, in addition to the P/L A/c and the B/S. In this session Dr. Lamba explains, using an example, the steps involved in the making of this statement. This module also covers the importance of footnotes to financial statements and how to use them in the preparation of a Funds Flow Statement.