Financial ratios
Free IMA CMA Part 2 (Strategic Financial Management) lesson in Financial Statement Analysis. 12 min read, ~1,818 words.
Liquidity is paying bills due within a year. Solvency is surviving the long-term debt load. Cash conversion cycle = DSI + DSO − DPO. Shorter frees working capital. Equity multiplier (Total Assets / Total Equity) is the leverage lever in DuPont ROE. TIE = EBIT / Interest. Fixed charge coverage...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2A2
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