SME Financing in South Africa: A Guide for Non-Financial Managers

How to interpret and present standard financial ratio analysis Module

About the module: Ratios compares line-item data from a businesss financial statements to reveal insights regarding profitability, liquidity, operational efficiency, and solvency. Ratio analysis can mark how a business is performing over time, while comparing a business to another within the same industry or sector.

Purpose of the module: Be able to prepare and interpret standard financial ratio analysis to evaluate the businesss liquidity, efficiency, profitability, and risk.

Rational of the module: Financial ratios are tools that are used to evaluate a businesss relative strength by performing simple calculations on items on income statements, balance sheets, and cash flow statements. Ratios assess a businesss operational efficiency, liquidity, stability, and profitability, providing more relevant information to investors than raw financial data. Using the widely popular, and arguably indispensable, technique of ratio analysis, investors and analysts can gain profitable advantages in the stock market.

The above mentioned module is one of seven modules in the skills programme titled: How to manage business finances . How to manage business finances - is one of ten skill programmes available in our Entrepreneurship Master Programme .

Skills programme - How to manage business finances

The purpose of the skills programme: The purpose of the programme is to assist delegates understand the four basic financial statements (balance sheet, income statement, cash flow statement, and statement of owners equity) and be able to evaluate the businesss liquidity, efficiency, profitability, and risk using standard financial ratio analysis. Throughout the programme, delegates will practice thorough bookkeeping, making accurate projections, creating financial statements, and financial ratio analysis. Upon successfully completing the programme, delegates should be able to demonstrate knowledge, application, and comprehension of working capital management, capital budgeting, and financial reporting and analysis.

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Super Deal Maker - is a productivity web based platform to assist entrepreneurs and business managers in building sustainable businesses quickly and successfully by providing them with access to tools, training, and a business management activity planner to make sure they are doing the right things in the right order.

Entrepreneurship Master Programme is a high-level programme that combines virtual and in-person sessions to provide theoretical and practical training to entrepreneurs and business managers in areas such as business planning, marketing, strategy, operation, and finance.