Analyzing Performance and Efficiency Ratios

Efficiency And Performance Ratios And Their Uses CPE = 1.0

Managers use ratio analysis to pinpoint strengths and weaknesses from which strategies and initiatives can be formed. Shareholders may use ratio analysis to measure your company's results against other organizations or make judgments concerning management effectiveness and mission impact.

Important ratio 'groups' that assist in analyzing a business and its viability are efficiency and performance ratios. Performance ratios measure the function of core operations for a company. These ratios reveal information about how efficiently resources are used to generate sales and cash, among other things.

Efficiency ratios are used to analyze how well a company uses its assets and liabilities internally. Ratio analysis is a useful tool that will improve understanding of financial results over time. It provides key indicators of organizational performance.

This course focuses on specific efficiency and performance ratios and their use.

Learning Objectives

Explore the types and purpose of efficiency ratios including:

  • Sales and Inventory
  • Accounts Receivable (AR) turnover
  • Asset turnover
  • Inventory turnover
  • Explore the purpose of performance ratios.
  • Identify various performance ratios and how to analyze the results including:
  • Days sales outstanding
  • Cash Conversion Cycle
  • Days payable outstanding
  • Days inventory outstanding
  • Days payables outstanding

Field: Accounting
CPE: 1.0
Delivery Method: Self Study
Format: Video

Your Instructor

Lynn Fountain
Lynn Fountain

Consultant, CPA, CGMA, CRMA, MBA, Past Chief Audit Executive
Business Consultant, Trainer, Author

Ms. Fountain has over 40 years of experience in the business profession, which includes public and industry accounting and over 20 years within internal and external auditing combined. She is a nationally recognized trainer and speaker and also a published author. She is a subject matter expert and specializes in Internal Audit, Sarbanes-Oxley, Enterprise Risk Management, Fraud, Governance and Compliance. Ms. Fountain has held two Chief Audit Executive positions for international companies. She currently performs consulting for companies on internal audit, risk management, internal controls, SSAE 18, financial reporting and accounting along with performing training. She has also been instrumental in the establishment of ERM, Sarbanes-Oxley and Governance frameworks.

Ms. Fountain has authored a publication for the Institute of Internal Auditors Research Foundation (IIARF) titled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. The publication will be released April 20, 2015. In addition, she is authoring a publication for Auerbach on “The Realities of performing the Chief Audit Executive Role”. The publication will be released in the Fall 2015. In addition, she has performed as an adjunct instructor for the School of Business for Grantham University and the School of Business at the University of Kansas.

Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has active, current CPA, CGMA, and CRMA credentials.

Course Curriculum

  Abstract Analyzing Performance and Efficiency Ratios
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