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Income Statement Reading, Interpretation & Analysis

Name: Income Statement Reading, Interpretation & Analysis
Rating: 4.0 (59 reviews)

Basics of How to Interpret and Analyze Year End Income Statements For Companies. Profit and Loss Statement Analysis.

Created byChris Benjamin, MBA & CFO

Last updated 6/2023

English

English [Auto],

What you'll learn

Learn From A Top Rated Instructor Who Has Been Teaching On Udemy Since 2013 and Taught Over 100,000 Students!
Discuss Income Statement Terminology
Key Indicators
Metrics For Analysis
Multi Company Financials
Ratio Analysis
Accounting Fundamentals
Profitability Ratios
Future Projections
And Much More!

Course content

5 sections • 24 lectures • 1h 24m total length

Course Introduction1:19
Explore income statement components such as revenues, cost of goods sold, and expenses, and learn indicators for analysis, planning, budgeting, and forecasting to grow your business.
Instructor Introduction2:30
Meet the instructor, a seasoned CFO with an MBA and 20+ years guiding startups to IPOs, teaching how to read financial statements and build accounting systems for growth.
Review and Feedback System2:09
A discussion about the Udemy review system.
Excel Basics - Formatting, Reports and Charts18:17
Master Excel basics for formatting, building tables, and creating charts. Apply shortcuts, formulas, AutoSum, and Paste Special to streamline day-to-day analysis.

Overview and Introduction to What To Know2:01
Learn to read an income statement by interpreting revenue, cost of goods sold and services, general administrative and selling expenses, and other income and expense to assess company performance.
Revenue2:39
Explain revenue on the income statement as the earnings quality indicator. Explain accrual accounting: revenue is recognized when earned, not when cash is received, with accounts receivable reflecting unpaid amounts.
Cost of Goods Sold3:43
Identify and interpret the costs of goods sold, including direct labor, materials, and shipping, and understand how these production costs connect to revenue on the income statement.
G&A Expenses2:21
Explore how general and administrative (G&A) expenses, such as salaries, rent, and other nonproduction costs, differ from cost of goods and are classified under accounting rules with department level analysis.
Selling Expenses2:27
Examine selling expenses as a distinct operating cost, with detailed breakdowns of salaries, marketing, advertising, and promotional materials to aid analysis and their allocation to cost of goods sold.
Other Income and Expenses2:23
Explore how the other income and expenses section includes items not tied to core operations, such as depreciation and amortization, one-time gains or losses, and interest income or expense.

Introduction To Tips and Strategies1:15
Explore tips for income statement analysis by comparing performance across periods, slicing by divisions, geography, and products, relating to other statements, and using ratio analysis for benchmarking.
Income Statement Comparisons3:33
Compare income statements across periods to uncover trends, assess how revenues and costs, including cost of goods sold and payroll, move together, and interpret marketing effects on profitability.
Income Statement Slicing2:35
Relating Income Statement To Other Financials2:36
Relate the income statement to other financial statements, noting how revenue and expenses affect cash, accounts receivable, and retained earnings on the balance sheet and the statement of cash flows.
Revenues and Expenses Relationship To Cash Flow1:26
Explore how revenues and expenses relate to cash flow, noting accrued salaries and non-cash items like depreciation and amortization, and use the income statement to assess performance.
Ratio Analysis3:06
Apply ratio analysis to income statements to compare margins and profitability. Track gross profit, gross profit percentage, net income percentage, and earnings before income tax, depreciation, and amortization across revenues.

Do's and Don'ts4:34
Compare current periods to prior ones and apply industry-specific ratios to reveal trends. Read notes and md&a for deeper insight, verify numbers with business events, and ask questions.
Case Study 1 - Growing Private Company1:30
Case study reveals a growing private company using departmental income statements, including marketing, to locate revenue and expense sources and drive cost reductions for a stronger bottom line.
Case Study 2 - Private Health Company1:44
Case Study 3 - Publicly Traded Company1:15
Analyze how a publicly traded technology company uses departmental income statements to allocate spending and plan growth. Note slower growth, consistent growth, R&D focus, and geographic sales insights.
10 Point Checklist4:04

Course Conclusion2:21
Explore how financial statements reveal performance by divisions and geography, drill into marketing expenses, and use MD&A footnotes to understand drivers behind changes.
2023 Entrepreneur Trends To Watch13:59
Explore 2023 entrepreneur trends driving startups, including digital transformation and AI. Assess inflation, supply chains, immersive experiences, remote work, and global talent opportunities.
Recommended Next Steps0:16
Income Statement Analysis Quiz
Income Statement Review

Requirements

General knowledge of an income statement
No other experience needed!
Commitment to learning

Description

Are You A Executive, CFO, CEO or Board Member?

Are You An Entrepreneur or Business Owner?

Have You Ever Wanted To Truly Understand And Interpret An Income Statement Beyond The Basics?

Do You Want To Take Your Knowledge of the Income Statement Beyond The Basics?

If You Answered "Yes" To Any Of The Above, Look No Further. This Is The Course For You!

*** Updated with new content! ***

Enroll today and join the 100,000+ successful students I have taught as a Top Rated Udemy instructor!

Three reasons to TAKE THIS COURSE right now:

You get lifetime access to lectures, including all new lectures, assignments, quizzes and downloads
You can ask me questions and see me respond to every single one of them thoroughly!
You will are being taught by a professional with a proven track record of success!
Bonus Reason: Udemy has a 100% refund policy - no questions asked and no risk for you!

Recent Review:

Alfred A says "Great course, exactly what I needed. Sure it's easy enough to look at an income statement and see if a company made a profit or loss at the bottom, but how to actually use all the information contained in the report was beyond me. Now I know how to line by line read, understand and actually interpret how the business performed. I feel like my knowledge increased 10 times."

Unlock The Secrets Of Actually Understanding The Income Statement and Understanding A Business

As a business owner, investor, accountant or potential investor, it is important to understand how to read and interpret an income statement. Often people just look at the bottom line to see if a company is profitable, but ignore the details and wealth of information included in an income statement.

Become a income statement analysis pro with this course!

In this course we first cover all of the sections of an income statement and describe what information is included and WHY. Secondly, we go through and learn the best practices for now analyzing and interpreting that information. Learn about ratio analysis, comparative analysis to other years, divisions, geographies and companies. We go through several do's and don'ts related to income statement and financial statement analysis, as well as my top tips and strategies.

What We Do In The Course:

Learn income statement terminology
Understand each section of the income statement and what is included and why
Learn key financial ratio analysis metrics that you should be applying to income statements
Learn the importance of comparing to other periods, other divisions, geographies and more
Review 3 case studies and how financial analysis related to them
And Much More!!!

At any point if you have a question, please feel free to ask through the course forum, I'd be happy to answer any and all questions.

***CLICK "BUY NOW" AND LEARN EVERYTHING ABOUT INCOME STATEMENTS IMMEDIATELY! ***

About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 25 years experience in accounting, finance, income statement preparation and analysis. Having spent the first 10 years of my career in corporate settings with both large and small companies, I learned a lot about the accounting process, managing accounting departments, financial reporting, external reporting to board of directors and the Securities and Exchange Commission, and working with external auditors.

The following 10+ years I decided to go into CFO Consulting, working with growing companies and bringing CFO level experience to companies. I help implement proper best business practices in accounting and finance, consult on implementation of accounting systems, implementing accounting procedures, while also still fulfilling the CFO roll for many of my clients which includes financial reporting, auditing, working with investors, financial analysis and much more.

Thank you for signing up for this course on Udemy. I look forward to being your instructor for this course and many more!

Chris Benjamin, Instructor, CFO & MBA

Who this course is for:

Entrepreneurs
Business Owners
CEOs
Anyone interested in learning about financial statement analysis

Income Statement Reading, Interpretation & Analysis

What you'll learn

Explore related topics

Course content

Introduction4 lectures • 24min

What To Know6 lectures • 16min

Tips and Strategies6 lectures • 15min

Other Information5 lectures • 13min

Course Conclusions3 lectures • 17min

Requirements

Description

Who this course is for: