
Learn a four-step framework to assess company health using income statement, balance sheet, cash flow statement, liquidity, profitability, solvency, and activity ratios, plus DuPont roe analysis with industry context.
Explore the income statement as a narrative of revenue, costs, and profit. Trace the waterfall from revenue to gross profit, operating profit (ebit), and net profit.
Read a balance sheet as a financial x-ray by applying the fundamental accounting equation: assets equal liabilities plus equity, and identify assets, liabilities, and equity to assess net worth.
Uncover how the cash flow statement bridges profit and cash, revealing a company's health through operating, investing, and financing activities and free cash flow.
Discover how the income statement, balance sheet, and cash flow statement form a connected financial ecosystem, with net income updating retained earnings and impacting cash flow.
Explore profitability ratios as a financial health check. Learn how gross, operating, and net margins, along with ROA, ROE, ROIC and WACC, reveal true value creation.
Discover how to assess a company's short-term liquidity by analyzing current, quick, and cash ratios and the cash conversion cycle, using ABC as a case.
Learn how solvency ratios reveal a company’s long-term viability through leverage, debt to equity, debt to EBITDA, and coverage metrics like interest and debt service coverage.
Analyze turnover ratios to reveal how efficiently a company runs its core operations by tracking inventory turnover, receivables turnover, and payables turnover, and by computing the cash conversion cycle.
Explore how the DuPont analysis decomposes return on equity into profitability, efficiency, and leverage, revealing the true drivers of performance behind headline ROE.
Analyze sectors and industries with a top-down macro view and a bottom-up company focus, using the telescope and microscope to assess life cycles, benchmarking, and risks for informed investing.
Apply Porter's five forces to reveal the competitive rivalry, threat of new entrants, bargaining power of buyers, bargaining power of suppliers, and threat of substitutes.
This course contains the use of artificial intelligence. Master the language of business through a complete and practical journey into financial analysis. This course takes you from understanding financial statements to performing professional level ratio analysis, DuPont decomposition, and sector and industry evaluation.
The content is designed for absolute beginners as well as learners who want a strong and structured foundation. Every concept is explained with clarity and real world relevance so you understand not only what the numbers show but also what they mean.
What this course covers
You begin by learning how businesses communicate their performance through the Income Statement, Balance Sheet, and Cash Flow Statement. You will understand what each line represents, why it matters, and how all three statements connect to form a complete financial picture.
You will then move into Ratio Analysis, which is the core of evaluating any company. You will learn all major ratio categories used by analysts. These include liquidity, profitability, solvency, and activity ratios. You will understand how each ratio reveals strengths, weaknesses, efficiency, and overall financial health.
Next, you will explore DuPont Analysis. This framework breaks down Return on Equity into its most important components such as profitability, operational efficiency, and the impact of leverage. You will learn how analysts identify the true drivers behind company performance.
Finally, you will expand your view by studying Sector and Industry Analysis. You will learn top down and bottom up approaches, understand how industries behave across economic cycles, identify long term trends, and evaluate the external forces that shape company performance.