An Operating Return Approach to Creating Value I: Financial Statement Analysis
  • Type Validation
  • Level Foundational
  • Time Months
  • Cost Paid
Additional Details

An Operating Return Approach to Creating Value I: Financial Statement Analysis

Issued by Kansas State University

Earners demonstrated competence in utilizing one of the most common analysis metric used in business today - return on equity (ROE). While ROE is a powerful metric, it includes income and losses from both operating and nonoperating activities when, in fact, companies create value mainly through the core operations of the business. The earner is now able to apply a variety of topics and concepts aimed at evaluating the profitability of a business from an operating perspective.

  • Type Validation
  • Level Foundational
  • Time Months
  • Cost Paid
Additional Details

Skills

Earning Criteria

  • Understand how to disaggregate ROE into operating and non-operating activities. Understand how companies create value through core operations.
  • Achieve 75% or higher composite score on quizzes.
  • Apply Dupont disaggregation of ROE into ROA and financial leverage. Disaggregate ROA into profitability and productivity and analyze both. Compute and interpret return on net operating assets (RNOA). Disaggregate RNOA into net operating profitability and net operating asset turnover.
  • Understand the underlying factors that drive business value.
  • Content requires approximately 20 to 25 hours to complete.