This introductory lesson covers financial ratios at a high level, explaining their significance and utility in analyzing a company's performance. You will also explore five key types of ratios and the importance of contextual analysis when using them.

Building on the introduction, this lesson focuses on profitability ratios, particularly margin ratios. You'll learn to calculate and apply gross profit margin, operating margin, and net profit margin to measure a business's ability to generate profits.

In this lesson, you will explore return ratios, which assess profitability relative to investment. You'll calculate and apply return on assets, return on equity, and return on capital employed to understand how well a company is using its resources to generate returns.

Liquidity ratios assess a company's ability to meet its short-term financial obligations. In this lesson, you'll learn how to calculate and apply the current ratio, quick ratio, and cash ratio, and analyze a case study to evaluate a company's liquidity position.

This lesson covers efficiency ratios, which measure how effectively a business uses its assets and resources. You'll learn to calculate inventory turnover, accounts receivable turnover, accounts payable turnover, and asset turnover, applying these insights to business operations.