Presentation file

1. Course Code: GED 307
Course Title: Financial and Managerial Accounting
Presented By
Name: Mirza Milan Farabi
ID: 191002150
Section: 191DD
Presented To
Ms. Hasinat Raquiba
Lecturer
Green University of Bangladesh
1

2. Financial Statement Analysis
2

3. 3
Content
 Inventory Turnover Ratio
 Net Profit Margin Ratio
 Return on Assets
 Return on Shareholders Equity
 Times Interest Earned
 Conclusion

4. Inventory Turnover Ratio 4
Definition: The inventory turnover ratio is the
number of times a company has sold and
replenished its inventory over a specific amount of
time.
Formula:
Example:

5. Net Profit Margin Ratio 5
Definition: It is the ratio of net profits to revenues
for a company or business segment.
Formula:
Example:

6. Return on Assets 6
Definition: The return on assets shows the
percentage of how profitable a company's assets are
in generating revenue.
Formula:
Example:

7. Return on Shareholders Equity 7
Definition: The return on shareholders' equity
ratio shows how much money is returned to the
owners as a percentage of the money they have
invested or retained in the company.
Formula:
Example:

8. Times Interest Earned 8
Definition: Times interest earned or interest
coverage ratio is a measure of a company's ability to
honor its debt payments.
Formula:
Example:

9. Conclusion 9
Financial statement analysis is the process of
reviewing and analyzing a company's financial
statements to make better economic decisions to
earn income in future.

10. 10
Thank You