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You're reading from  Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

Product typeBook
Published inJun 2022
PublisherPackt
ISBN-139781803231143
Edition2nd Edition
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Author (1)
Shmuel Oluwa
Shmuel Oluwa
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Shmuel Oluwa

Shmuel Oluwa is a financial executive and seasoned instructor, of over 25 years, in a number of finance related fields, with a passion for imparting knowledge. He has developed considerable skill in the use of Microsoft Excel and has organised training courses in Business Excel, Financial Modeling with Excel, Forensics and Fraud Detection with Excel, Excel as an Investigative Tool, Accounting for Non-Accountants, Credit Analysis with Excel amongst others. He has given classes in Nigeria, Angola, Kenya and Tanzania but his online community of students covers several continents. Shmuel divides his time between London and Lagos with his pharmacist wife. He is fluent in 3 languages. English, Yoruba and Hebrew.
Read more about Shmuel Oluwa

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Preparing ratio analysis

With the preparation of a cash flow statement, we now have the core content of a set of financial statements. These financial statements, now referred to as a statement of financial position, statement of comprehensive income, and cash flow statement, along with explanatory notes and schedules, are distributed to shareholders of the company and government. It is also these financial statements that are available to other interest groups, such as investors and holders of the debt capital of the company.

The financial statements provide a significant amount of information about the company and its results for the period under review; however, on their own, they are not adequate for decision-making. Ratio analysis provides an in-depth look at the details behind the figures. The following screenshot is an example of a set of ratio analyses:

Figure 2.11 – Ratio analysis

By looking at the relationship between strategic pairs of...

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Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition
Published in: Jun 2022Publisher: PacktISBN-13: 9781803231143

Author (1)

author image
Shmuel Oluwa

Shmuel Oluwa is a financial executive and seasoned instructor, of over 25 years, in a number of finance related fields, with a passion for imparting knowledge. He has developed considerable skill in the use of Microsoft Excel and has organised training courses in Business Excel, Financial Modeling with Excel, Forensics and Fraud Detection with Excel, Excel as an Investigative Tool, Accounting for Non-Accountants, Credit Analysis with Excel amongst others. He has given classes in Nigeria, Angola, Kenya and Tanzania but his online community of students covers several continents. Shmuel divides his time between London and Lagos with his pharmacist wife. He is fluent in 3 languages. English, Yoruba and Hebrew.
Read more about Shmuel Oluwa