Ratio analysis provides a way of summarising a large volume of accounting information into simple financial measurements. These ratios can be used to monitor a firm's financial performance compared to previous accounting periods or may be used to check how well the firm is doing compared to its competitors.

The course will define the purpose and pitfalls of financial ratios, as well as the calculations for key ratios. A demonstration of how financial statements and ratios are used to assess a company’s performance will be given.