Topics Covered in Red Company

The Table of Contents below shows all of the topics covered by Red Company. The combined textbook and software approach allows the student to easily understand and master the 32 financial statement analysis tools.

Introduction to Red Company’s Simulation Model

The Elements of the Red Company Financial Model
Red Company’s 13 Input Variables
Homework

Chapter 1

Vertical Analysis and Horizontal Analysis
Vertical Analysis of the Income Statement
Vertical Analysis of the Balance Sheet
Horizontal Analysis of the Income Statement
Horizontal Analysis of the Balance Sheet
Homework

Chapter 2

DuPont Analysis

Assets-to-Equity Ratio
Total Assets Turnover Ratio
Net Profit Margin %
Return on Equity %
Return on Assets %
Homework

Chapter 3

Drilling-Down Into the DuPont Analysis

Gross Profit Margin %
Operating Profit Margin %
Accounts Receivable Turnover Ratio
Number of Days' Sales in Receivables
Inventory Turnover Ratio
Number of Days' Sales in Inventory
Accounts Payable Turnover Ratio
Number of Days' Purchases in Accounts Payable
Cash-to-Cash Cycle
Fixed Asset Turnover Ratio
Debt %
Debt-to-Equity Ratio
Interest Coverage
Homework

Chapter 4

Liquidity Indicators - Cash Flow Indicators - Equity Investor Indicators

Working Capital
Current Ratio
Quick Ratio
Cash Flow to Net Income Ratio
Cash Flow to Capital Expenditures Ratio
Free Cash Flow
Earnings per Share
Price-Earnings Ratio
Dividend Payout %
Dividend Yield %
Homework