Analyzing Financial Efficiency and Performance Ratios (Completed)
Date: Tuesday, January 13, 2026
Instructor: Lynn Fountain
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs |
|
Managers use ratio analysis to identify strengths and weaknesses, forming the basis for strategic decisions and operational initiatives. Shareholders often apply ratio analysis to compare a company’s results with those of other organizations or to assess management effectiveness and mission impact.
Two important ratio categories for evaluating a company’s viability are efficiency ratios and performance ratios.
Performance ratios measure the effectiveness of core operations, revealing how well resources are used to generate sales, cash flow, and other key outcomes.
Efficiency ratios assess how effectively a company manages and utilizes its assets and liabilities internally.
When tracked over time, ratio analysis becomes a powerful tool for understanding financial performance. It provides essential indicators that help both internal and external stakeholders evaluate an organization’s operational health and strategic direction.
This course focuses on specific efficiency and performance ratios and their use.
Who Should Attend
Financial and accounting analysts, internal auditors, compliance analysts, investor analysts and anyone interested in having a better comprehension of a company’s performance.
Topics Covered
- Performance Ratio (Profit % Returns):
- Gross Profit Margin
- Operating Margin
- Net Profit Margin
- Return on Assets
- Return on Equity
- Return on Capital Employed
- Efficiency ratios (Operational Effectiveness):
- Inventory Turnover
- Receivables turnover
- Asset Turnover
- Payables Turnover
- Working Capital Turnover
- Fixed Asset Turnover
Learning Objectives
- Identify the types and purpose of efficiency ratios including
- Identify the purpose of performance ratios
- Identify various performance ratios and how to analyze the results including
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
