• The Open University

Corporate Finance: Ratio analysis

In this course you will learn how to analyse a business using its financial information.

Finance planning meeting
  • Duration

    2 weeks
  • Weekly study

    14 hours

Learn about ratio analysis, forecasting, raising finance and capital structure

You will continue the study of financial statements by asking what we should do with that information. Ratio analysis allows us to make judgements about various aspects of the business. The next area of study will examine the importance of forecasting. A key difference between accounting and finance is that finance is very much concerned with the future and decisions that need to be made to influence future events. Finally, you will examine ways for businesses to raise capital and discuss whether there is a preferred capital structure.

What topics will you cover?

  • Profitability ratios
  • Efficiency ratios
  • Liquidity and solvency ratios
  • Market-based ratios

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Analyse financial information to see how effectively and efficiently an organisation is managed
  • Compare an organisation’s effectiveness and efficiency in using resources to competitors and to sector norms
  • Identify the different ways in which an organisation can report on its performance
  • Explore how external stakeholders evaluate the performance of your organisation.

Who is the course for?

This course is aimed at everyone who works in areas such as investment banking, portfolio management, corporate finance, treasury, law and consultancy.

What software or tools do you need?

You will need to be able to install and run additional software on a desktop or laptop computer with an up-to-date version of either Windows or macOS. The screen of the device must have a resolution of at least 1024 pixels horizontally and 768 pixels vertically.

You will also need a microphone and speakers/headphones to participate in online discussions.

Who will you learn with?

I am a Senior Lecturer in Finance at the Open University and lead its MSc in Finance. My research is on the financing of innovative businesses, venture capital and frictions in financial markets.

I am a Chartered Accountant who, before moving into teaching, worked in the real estate investment and development sector. I have also been a director on a number of investment funds.

Who developed the course?

The Open University

As the UK’s largest university, The Open University (OU) supports thousands of students to achieve their goals and ambitions via supported distance learning, helping to fit learning around professional and personal life commitments.

  • Established

    1969
  • Location

    Milton Keynes, UK
  • World ranking

    Top 510Source: Times Higher Education World University Rankings 2020

Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps to help you keep track of your learning
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control

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