8. Financial ratio analysis
To recap, in the previous videos, we discussed the three important financial statements: balance sheet, cash flow statement, and P&L statement. In this video, we discuss financial ratios and what they convey. Simply put, financial ratios will help you understand the financial health of a company. There are three broad categories of financial ratios: Profitability ratios, leverage ratios, and valuation ratios.
We break down each category and ratio and understand how you can use them to get a sense of the fundamentals of a company.
0:00 Financial ratios
0:27 Categories of financial ratios
1:40 Profitability ratios
4:50 Leverage ratios
6:36 Valuation ratios
9:16 What is book value?
Learn more about financial ratios here: https://zerodha.com/varsity/chapter/f...
https://zerodha.com/varsity/chapter/f...
https://zerodha.com/varsity/chapter/f...
If you have any questions about financial ratios, do post them at the end of the chapter.