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Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet

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Make Better Business Investment Decisions


To understand the fundamentals of ratio analysis and thus improve your business or investment profits, our concise, clear friendly book is a great place to start. Written in a conversational manner with explained examples, it's never a better time to take more control of your financial statements.


Ratio Analysis
How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet


There is so much we can do with financial data beyond the mere compliance-required record keeping. Ratio Analysis Fundamentals teaches you the fundamentals of one of these extra ratio analysis. This application allows you to take data from the financial statements internal business records and evaluate performance, risk efficiency and allows benchmarking and viewing trends over time.


Ratio Analysis Fundamentals will give the financial statement novice power to add value to business and investments.


The book covers 17 Financial Ratios that can be used for the financial analysis of a business.


Each Financial Ratio Section
The formula
A worked example
Guidance on where to locate the data in the financial statements
Guidance on how to interpret the result of the ratio analysis calculation


Use Ratio Analysis
Profitability comparison, to help improve performance of businesses and investments
Liquidity testing, to assess how comfortably a business can maintain operations
Leverage measurement, which can be used to check risk
Efficiency benchmarking, to improve internal operations
Valuation analysis, to decide between alternative investments


What's New in the 2nd
Revised and improved content in many sections as a result of the author's further research
Updated formatting to assist reading experience on mobile devices
Removal of spelling and grammatical errors to reduce confusion and improve professionalism

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First published December 7, 2012

72 people are currently reading
220 people want to read

About the author

Axel Tracy

12 books4 followers
"My mission is to put academic accounting & finance knowledge, through technology, in the hands of businesspeople & investors."

Axel Tracy has been educated in accounting and finance at two of Australia's leading universities: The University of Technology, Sydney (UTS) and The Australian National University.

He is one of the top students at his current university (UTS) and is a member of the invitation-only Golden Key International Honours Society. Axel's GPA for accounting and finance subjects is 3.64 out of 4.

From 2011 till recently he was employed by UTS to run PASS Sessions for the 2nd-year accounting subject Accounting Standards and Regulations. This involved teaching undergraduate accounting students in a subject that has a high failure rate (Axel scored a High Distinction in this particular subject). Accounting Standards and Regulations is a financial accounting subject that involves Australia's current implementation of the International Financial Reporting Standards.

Axel has also been employed by UTS to be a one-on-one tutor in the subject of Accounting for Business Combinations. This is another 2nd-year financial accounting subject involving the accounting treatment of corporate groups, joint-ventures and associates.

His passion for financial markets has led his self-directed study about the 'value investing' philosophy, an investment approach originating from the Columbia Business School in the 1920s. He has also studied trading tactics and systems, however his greatest investment success has come from the former value investing approach.

Axel is happy being a small business operator (and hopes to make this business big) and his first business was launched when he was 25 years old.

Axel currently lives in Sydney, Australia, but hopes to live in many cities in the years to come.

"A little later than many, I found the reason for coming into this world. It was to become an entrepreneur and spread the accounting and finance knowledge that I had learned since 2003.

I greatly enjoy teaching and helping others see the beauty of accounting and finance.

I love accounting and finance...and I want you to feel the same way too!

And if I can't get you to love them, then my eBooks want to help you take those initial steps in your knowledge journey, so you can be armed with techniques and tools that will set you above the pack."

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5 stars
22 (31%)
4 stars
18 (26%)
3 stars
19 (27%)
2 stars
7 (10%)
1 star
3 (4%)
Displaying 1 - 5 of 5 reviews
Profile Image for Siddharth Chaturvedi.
20 reviews2 followers
July 18, 2021
NO HARM IN READING THIS.

This book is neither for beginner nor for expert. As for understanding terms & Ratios mentioned in the book you must have knowledge of reading balance sheet of a company.

I would say if you can just read & understand what that term mentioned in the balance sheet means then you will understand this book better.

And if your are expert then this book is just a basic & won't give you anything great for advance level.

It is very simple & short read as you will get some idea of calculation of ratios.

Do not expect much out of this book, but according to me more & deeper the knowledge of fundamentals analysis of company more you will become sharp in choosing your right stock.
Profile Image for Karen.
432 reviews16 followers
July 27, 2015
Easy to understand

Simple document structure. Well explained and examples given to explain the ratios. It will help me with my Company Directors course. Nice work.
Profile Image for Vu Phuong.
70 reviews
June 24, 2023
This book works like a summary of financial analysis course. Its written by an MBA graduate which reminds me of school time 😂 easy to read, focus & practical if you would like to have a quick review of the key ratios. However, if you look for an in-depth guide to evaluation or analysis. This is definitely not the one! The books does not include Cash Flow ratio which I think its a minus point given the importance of it in my opinion. Its more of a 3.5 stars 🙃🙂
1 review
Currently reading
February 28, 2021
good book
This entire review has been hidden because of spoilers.
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