Ratio analysis and financial reporting quality

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Calculate and interpret ratios used in profitability, liquidity, solvency, efficiency, and valuation analysis using information from the financial statements.
Use the DuPont framework to decompose return on equity and explain how operating performance, efficiency, leverage, and tax effects drive changes in shareholder returns.

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Evaluate the impact of accounting methods, estimates, and alternative classifications on ratio comparability and financial statement analysis.

Assess financial reporting quality by identifying warning signs related to aggressive revenue recognition, expense capitalization, off-balance-sheet effects, non-recurring items, and cash flow inconsistencies.

Integrate ratio analysis with broader company and industry context to form a reasoned conclusion about financial condition and performance.

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