Title: Module 3 Introduction: (CU1 M3)
Course: SkillsCom BA 222 16.0 > Section: Credit Unit 1 Module 3

Now that you are familiar with the Balance Sheet and the Income Statement, you can use the information they contain to calculate various Business Ratios. Ratio analysis is a widely use analysis tool which uses the ratios as general indicators of a company’s performance.

Module 3 introduces the calculation of ratios for analyzing business activity.

Module Outcomes:

• Calculate and interpret standard business ratios including: current, inventory turnover, gross margin (profit), ROA, ROE, EPS, and A/R Days.