{"id":795,"date":"2018-09-03T08:30:20","date_gmt":"2018-09-03T08:30:20","guid":{"rendered":"https:\/\/mbabullshit.com\/bull\/?p=795"},"modified":"2019-04-25T09:50:03","modified_gmt":"2019-04-25T02:50:03","slug":"8-financial-ratio-analysis-tutorials-free","status":"publish","type":"post","link":"https:\/\/mbabull.com\/bull\/2018\/09\/03\/8-financial-ratio-analysis-tutorials-free\/","title":{"rendered":"8 Financial Ratio Analysis Tutorials (Playlist below)"},"content":{"rendered":"\r\n<h3>3-Minute Overview: Financial Ratio Analysis Explained<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/TZZFBkbC2lA\" width=\"560\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<h2>Download FREE cheat-sheet PDF at the bottom of all videos below<\/h2>\r\n<h2>*For ALL this website&#8217;s FREE and Premium tutorials on other topics, <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/mbabull.com\/bull\/video-tutorials\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a><\/span><\/h2>\r\n<h3 id=\"watch-headline-title\">Current Ratio<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/OfnCKILxAG0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>Current Ratio: (Current Assets)\/(Current Liabilities)<\/p>\r\n<ul>\r\n<li>Tells us how much of\u00a0 your company\u2019s stuff can be easily changed into cash within the next 12 months so that it can pay debts which need to be paid also within 12 months.<\/li>\r\n<li>A higher ratio (significantly above 1) indicates that the company is \u201cless risky\u201d for creditors, but could also indicate that the company is not efficient at using current assets for more profit.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<h3>Quick Ratio or Acid Test Ratio<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/pYXfNuQre54?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>Quick or Acid Test Ratio: (Quick Assets)\/( Current Liabilities)<\/p>\r\n<ul>\r\n<li>Tells us how much assets can be <span style=\"text-decoration: underline;\">easily and quickly<\/span> converted to cash to pay for liabilities within the next 12 months.<\/li>\r\n<li>Similar to current ratio, a higher number indicates that the company is \u201cless risky\u201d for creditors, but could also indicate that the company is not efficient at using <span style=\"text-decoration: underline;\">short term<\/span> assets for profit.<\/li>\r\n<\/ul>\r\n<h3>Cash Ratio<\/h3>\r\n<p><br \/><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/M6mKUuacFs8?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>Cash Ratio: (Cash\/Current Liabilities)<\/p>\r\n<ul>\r\n<li>Similar to the current ratio and even more stringent than the Quick Ratio, as we only compare cash with current liabilities instead of all current assets to current liabilities. Why? Because you cannot easily use all of your current assets to pay your debts.<span style=\"font-size: 13px; line-height: 19px;\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3>ROA Ratio Return on Assets<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/S-_JPvrufXU?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>ROA or Return on Assets: (Net Income)\/(Total Assets)<\/p>\r\n<ul>\r\n<li><span style=\"font-size: 13px; line-height: 19px;\">Higher ROA indicates that the company is more efficient in using assets to generate profit; a lower ROA indicates that the company is less efficient in using assets to generate profit.<\/span><\/li>\r\n<\/ul>\r\n<h3>ROE Ratio Return on Equity<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/Th3IVHu3eVI?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>ROE or Return on Equity: (Net Income)\/(Total Equity)<\/p>\r\n<ul>\r\n<li>A higher ROE indicates that the company is more efficient in giving more profit to the company\u2019s owners compared to these owners\u2019 personal investment in the company.<span style=\"font-size: 13px; line-height: 19px;\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3>Profit Margin Ratio<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/auLmI7bzY0o?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>Profit Margin Ratio: (Net Income)\/(Sales)<\/p>\r\n<ul>\r\n<li>Tells us how much profit your company earns compared to your company\u2019s sales.\u00a0 Normally, a higher number is better; because you want to earn more profit for every $1 of sales that you get.<span style=\"font-size: 13px; line-height: 19px;\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h3>EPS Earnings Per Share<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/2bbsAsnX1nM?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>EPS or Earnings Per Share:\u00a0 (Net Income)\/(# Shares Outstanding)<\/p>\r\n<ul>\r\n<li><span style=\"font-size: 13px; line-height: 19px;\">Tells us how much proportion of income the holder of one share of stock is entitled to.\u00a0 VERY UNRELIABLE ratio because even companies of same size or profitability may have different number of outstanding shares.<\/span><\/li>\r\n<\/ul>\r\n<h3>P\/E Ratio or Price Earnings Ratio<\/h3>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/Zu-D8oWJ5uU?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<p>P\/E or Price Earnings Ratio: (Share\u2019s Market Price)\/(Earnings Per Share)<\/p>\r\n<ul>\r\n<li>A low Price Earnings Ratio can be good because it means the market price is low compared to how much profit the company is making; but can also be bad because \u201cwhy is it selling cheap?\u201d Maybe they&#8217;re expecting bad news in the future.<b><\/b><\/li>\r\n<\/ul>\r\n<h2>7 Turnover Ratios &#8211; Premium Video (Free Preview)<\/h2>\r\n<h2>*To watch this Premium video in FULL, <a href=\"https:\/\/mbabull.com\/bull\/2018\/09\/07\/7-turnover-ratios-financial-ratios-in-19-minutes\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a><\/h2>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/F_Fn51eZWCo?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<h2>5 Financial Leverage Ratios &#8211; Premium Video (Free Preview)<\/h2>\r\n<h2>*To watch this Premium video in FULL, <a href=\"https:\/\/mbabull.com\/bull\/2018\/09\/07\/5-financial-leverage-ratios-in-24-minutes\/\" target=\"_blank\" rel=\"noopener noreferrer\">click here<\/a><\/h2>\r\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/wVVgRLgyF-w?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\r\n<h2>Download FREE cheat-sheet PDF on <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" title=\"Financial Ratio Analysis Cheat Sheet\" href=\"https:\/\/mbabull.com\/blog\/wp-content\/uploads\/2013\/03\/FinancialRatiosCheatSheet.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Financial Ratio Analysis click here<\/a><\/span><\/h2>\r\n<p><strong>Overview:<\/strong><\/p>\r\n<ul>\r\n<li>It\u2019s not enough to simply say a company is in \u201cgood or bad\u201d health\u2026<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>We put numbers on this \u201chealth,\u201d so that we can compare these \u201chealth numbers\u201d with the numbers of other companies\u2026<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>One form of \u201chealth numbers\u201d are \u201cratios\u201d which is basically different numbers combined into just one number to make it \u201csimpler.\u201d<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>For example, if a company has current assets of $1,000 (one number) and current liabilities of $800 (another number), these two numbers can be combined $1,000\/$800 into just one number of 1.25 (1000\/800=1.25) which in this example is the \u201ccurrent ratio.\u201d<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>Of course, because of this \u201c1-number simplicity,\u201d it doesn\u2019t tell the \u2018whole story\u2019 and they are not completely reliable.\u00a0 There are many <span style=\"text-decoration: underline;\">flaws<\/span> \u00a0and <span style=\"text-decoration: underline;\">many different ways of understanding<\/span> individual financial ratios, which I cover deeply in the FREE videos above. (I suggest you watch them.)<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li><span style=\"color: #ff0000;\">Liquidity Ratios<\/span> can tell us how easily a company can pay its debts\u2026 so that the company doesn\u2019t get eaten up by banks or other creditors. An example is the Current Ratio (as above).<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li><span style=\"color: #ff0000;\">Profitability Ratios<\/span> can tell us how good a company is at making money. An example of this is the Profit Margin Ratio.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li><span style=\"color: #ff0000;\">Leverage ratios<\/span> tell us how much debt the company is using to make the company run and stay alive. An example of this is the simple Debt Ratio.<\/li>\r\n<\/ul>\r\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>3-Minute Overview: Financial Ratio Analysis Explained Download FREE cheat-sheet PDF at the bottom of all videos below *For ALL this website&#8217;s FREE and Premium tutorials on other topics, click here Current Ratio Current Ratio: (Current Assets)\/(Current Liabilities) Tells us how much of\u00a0 your company\u2019s stuff can be easily changed into cash within the next 12 [&#8230;]\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-795","post","type-post","status-publish","format-standard","hentry","category-free-videos"],"_links":{"self":[{"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/posts\/795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/comments?post=795"}],"version-history":[{"count":9,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/posts\/795\/revisions"}],"predecessor-version":[{"id":4553,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/posts\/795\/revisions\/4553"}],"wp:attachment":[{"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/media?parent=795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/categories?post=795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mbabull.com\/bull\/wp-json\/wp\/v2\/tags?post=795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}