How to Prepare, Read and Analyse a Company Balance Sheet

Name: How to Prepare, Read and Analyse a Company Balance Sheet
Rating: 3.9 (1661 reviews)

A practical first step in company analysis

Created byThe Duomo Initiative

Last updated 8/2018

English

What you'll learn

Understand the individual components of a company balance sheet.
Understand the practical use of a balance sheet.
Diagnose the health status of a company.
Use financial ratios to analyse the context of a company's operations.
Build a balance sheet from scratch using any company's financial information.

Course content

5 sections • 35 lectures • 1h 56m total length

Introduction to the course5:48
Interview with your course subject expert3:30
Introduction to the course (text module)1:05
Main components of financial statements2:57
Main components of financial statements (text module)2:15
Supporting Financial Statements (Excel spreadsheets)0:22

Introduction to the balance sheet equation1:42
Introduction to the balance sheet equation (text module)0:07
The Balance Sheet follows an equation. In this section we are going to share with you this equation and we will be building this up together, one step at a time.
Introduction to assets4:32
Introduction to assets (text module)2:15
This module introduces the basic definition of assets and breaks down the assets in the various types.
Introduction to liabilities5:08
Introduction to liabilities (text module)0:09
This module introduces a common definition of liabilities.
Introduction to owner's equity3:31
Introduction to owner's equity (text module)1:21
This module introduces a common definition of what constitutes owner's equity, or as it is also known, shareholder's equity.
Balance sheet equation quiz

Introduction to building a balance sheet5:33
Introduction to building a balance sheet (text module)1:44
The Balance Sheet is an important tool to gain insight into a company and its operations. The Balance Sheet is like a photo at a single point in time of a company's assets, liabilities and owner's equity.
Building the net assets section4:12
Building the net assets section (text module)2:59
In this module you will practice what you have learned in Section 2 on how to build the net assets side of the Balance Sheet.
Building the liability section3:45
Building the liability section (text module)0:55
In this module you will practice what you have learned in Section 2 on how to build the liabilities side of the Balance Sheet.
Building the owner's equity section4:11
Building the owner's equity section (text module)0:48
In this module you will practice what you have learned in Section 2 on how to build the owner's (shareholder's) equity side of the Balance Sheet.
How to build a balance sheet quiz

Introduction to financial ratios1:24
Introduction to financial ratios (text module)0:41
In this section we will learn how the Balance Sheet can enable us to find out how much a company is worth, how healthy it is and in case of a public listed company whether the price of the shares reflect these factors.
Solvency ratios9:56
Solvency ratios (text module)4:03
We calculate solvency ratios to see whether a company has enough cash, assets and low debt to continue operations without running into financial trouble.
Activity ratios12:26
Activity ratios (text module)6:19
We use activity ratios to measure how well the management team are able to convert the business assets into cash or sales. By doing so we will see how efficient and well run a company really is.
Capital structure ratios7:53
Capital structure ratios (text module)4:41
We use capital structure ratios to analyse a company’s capital structure, mainly its debt and equity. The following ratios will show you how much a company is using debt to run the business.
Valuation ratios2:54
Valuation ratios (text module)1:07
We use valuation structure ratios to assess the overall value of a company, including the net asset value per shares in circulation.
Ratios quiz

Requirements

Must be able to use Excel at a basic level

Description

The Duomo Initiative presents: "How to Prepare, Read and Analyse a Company Balance Sheet".

A practical, step-by-step course that will accelerate your understanding of how to perform this critical aspect of company analysis.

The course is presented in the distinctive Duomo style; engaging and interactive, as seen on the popular YouTube Channel.

If you're an investor looking to improve the depth of your equity analysis...

Or an entrepreneur wanting to calculate your company's solvency...

Or simply someone that wants to expand their horizons by learning more about the financial world around them...

Then this is the course for you!

Featured in this package are nearly 2 hours of practical and theoretical lessons, detailed text modules and a quiz at the end of every section to test your understanding.

You will also receive a supporting spreadsheet, to aid you in completing all the practical activities.

The content of the course has been put together following proven principles for accelerated learning. This means it will challenge you to stay focused and work hard, but is still suitable for complete beginners with no previous accounting or financial experience.

This course will be presented by Nicholas Puri and has been written by Dr. Alexander Cassar, a director at PuriCassar AG and a qualified accountant since 1990.

Who this course is for:

Anyone who wants to understand a balance sheet.
Investors and traders who are investing in listed companies.
Business owners who want to understand how solvent their company is.
Business students who want a view of the balance sheet principles from a practical angle.

How to Prepare, Read and Analyse a Company Balance Sheet

What you'll learn

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Course content

Introduction6 lectures • 16min

The Balance Sheet Equation8 lectures • 19min

How to Build a Balance Sheet8 lectures • 24min

Diagnosing the company health with ratios10 lectures • 51min

The rest of the financial statement3 lectures • 6min

Requirements

Description

Who this course is for: