Contenu du cours
Module 1 — Understanding financial statements
What financial analysis is for, the balance sheet and the income statement.
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Module 2 — Reading the key figures
Revenue and margins, intermediate performance measures, profit.
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Module 3 — The essential ratios
Measuring profitability, liquidity and debt.
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Module 4 — Analysing and deciding
Interpreting ratios, managing cash and working capital, keeping common sense.
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Introduction to Financial Analysis

Debt measures the share of borrowing in how the company is financed. Debt is not bad in itself: it funds growth. But too much debt weakens a business.

The key indicators

  • Debt-to-equity ratio: debt ÷ shareholders’ equity. Above 1, the company owes more than it owns outright.
  • Repayment capacity: financial debt ÷ EBITDA. How many years to repay everything? Beyond three or four years, caution is required.
  • Financial independence: shareholders’ equity ÷ total funding. The higher it is, the less the company depends on banks.

An over-indebted company is vulnerable: the slightest drop in activity prevents repayment, and interest charges eat into the bottom line.

Key takeaway: a little debt is healthy, too much is dangerous. Check whether the company can repay out of what it earns.

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