Ep 29. Common Size, Trend, and Ratio Analysis

Critical Business Skills for Success is an informative and insightful series that seeks to arm professionals with the knowledge and tools necessary for success in the competitive world of business. In season 1 episode 29, viewers will learn about Common Size, Trend, and Ratio Analysis, a critical tool for analyzing financial data and making informed business decisions.

The episode is hosted by Dr. Tim Pollock, a seasoned professor of business and management, who guides viewers through the process of conducting a Common Size, Trend, and Ratio Analysis. The analysis is an essential process for entrepreneurs, investors, and managers as it helps them to identify financial trends and patterns that are essential for ensuring business success.

During the episode, viewers will learn about the different components of the analysis, including common size analysis, trend analysis, and ratio analysis. Common size analysis involves comparing different items on a financial statement such as revenues and expenses by expressing them as a percentage of sales. This helps to determine how a company's expenses and revenues change over time.

Trend analysis, on the other hand, involves examining financial data over a period of time to identify any patterns or trends. This can include looking at the growth or decline of a company's revenues or identifying patterns in their expenses.

Ratio analysis, the final component of the Common Size, Trend, and Ratio Analysis, involves comparing different financial metrics to identify relationships and dependencies between them. This can include comparing a company's current assets to their current liabilities to determine their liquidity or comparing their debt to equity ratio to industry standards.

Dr. Pollock walks viewers through each of these components and explains how they can be used to gain valuable insights into a company's financial health. He also provides practical examples and real-world case studies to illustrate the usefulness of the analysis.

Overall, the episode is an essential watch for anyone looking to gain a better understanding of financial analysis and the role it plays in making informed business decisions. Dr. Pollock's clear and concise explanations, coupled with the practical examples and case studies, make for an engaging and informative experience that is sure to leave viewers with a newfound appreciation for the power of financial analysis.