Understanding Financial Statements: Stocks & Shares Analysis
What you'll learn
- How to read, understand and Analyse Financial Statements?
- What to look for in Financial Statements and what to make out of it?
- How to identify value stocks for long term investment by analyzing the Financial Statements?
- How to evaluate the worth of a business or an investment in shares?
- The concept of Assets Liabilities and their balance
- Significance of Retained Earnings, Reserves and Surplus
- Significance of Debt Equity Ratio
- Working Capital and its Significance
- How to look at and what to look for in a Balance Sheet
- The Golden Rule of a Good Balance Sheet
- How to read and analyse a Balance Sheet
- How to read and analyse a Profit and Loss Statement
- Significance of Top Line and Bottom Line and the associated psychological aspect
- What is Cash Flow
- Significance of Cash Flow statement
- How to read and analyse a Cash Flow statement
- Significance of Ratio Analysis
- Understanding Face Value of a Share
- Understanding Book Value of a Share
- Understanding Market Price of a Share
- Understanding EPS
- Understanding PE Ratio
- Analysis of Debt Equity Ratio
- Understanding ROE
- Understanding PB ratio
- There are no prerequisites as we discuss from basics.
If you are looking at investing in Stock Market or Shares for a long term, then it is essential for you to conduct a Fundamental Analysis of the Stocks you intend to invest in. Fundamental analysis involves Industry Analysis, Company Analysis and Analysis of the Financial Statements. While Industry and Company Analysis are subjective and based on general reading material and business news, Analysis of Financial Statements is an Objective thing based on Facts and Figures ultimately culminating in Ratio Analysis based on which you make long term decisions.
In this course hosted by PRUDENCE Engineering and Financial Consultants, Col (Dr) Shabbar Shahid, an Army Veteran and a post graduate in Engineering and Finance with a Doctorate in management explains how an investor or any person can read, understand and analyze the financial statements and do ratio analysis of any business to determine the financial health of that business. This would help in financial analysis of a business and also identify good stocks for long term investment. The contents of the 3 financial statements viz. the Balance sheet, the PnL or income statement and the Cash flow statement and their relevance have been explained threadbare in detail for any non finance person to understand easily. Figures for the past 5 years have been analysed to explain how one can determine the growth of a company or otherwise.
Concepts like Assets, Liabilities, Retained earnings, Debt Equity, Current Assets, Current Liabilities, Working Capital, Top line-Bottom line, Revenue, Expenses, EBIT, Net profit, Cash flows from operating activities, Investment activities, Financing activities, Difference between Face value- Book value and market value and various ratios like EPS, PE, Debt Equity and Current ratio have been explained from the basics in a simple manner which one does not find in books. At the end of each financial statement, the key takeaways have been recapitulated.
The real life financial statements of a running company have been used to explain the contents, refraining from any hypothetical examples.
This course will be of immense benefit to those who intend to invest in Stock market as well as those who are already investing but with limited knowledge inputs. This course will help the students of finance, commerce and those pursuing or intending to pursue management courses in any subject to build their professional career on sound knowledge. Students of other disciplines like science, engineering and humanities who are interested in managing their personal investments will also find this course very useful.
If you own a business or are an employee responsible for growth of your company or if you are planning to invest in any company and if you are not familiar with reading the financial statements, then this course shall be of great help to you. You must at least have a look at the preview.
While this course is ideal for Value Investing, it may not be of much use to people who are interested only in day trading or trading in Futures, Call options and Put options or swing trading for which Technical analysis is essential
This course in Not specific to Indian stock market or US stock market or indices like Nifty, Sensex, NASDAQ or Dow Jones but a conceptual course applicable to all stock markets across the globe.
The speaker knows the subject well and speaks to the point without any glamour, frills or divergence thus, respecting the value of time.
This course is purely for educational purposes. Investment and trading in stock market involves financial risk. Students taking this course are advised to exercise due diligence before making any investment or trade in stock market. The instructor or any party related to this course or it's content will not be responsible for any kind of loss to anyone in anyway, due to this course.
Who this course is for:
- Students of Finance and Financial Management and those who are looking forward to a successful career in the field of finance and investment
- Those who invest or are interested in investing in stock market
- Students of commerce and business courses and who look forward to become CFA, CFO or Finance managers or Financial Analysts
- University and College students who would like to enhance their finance and investment knowledge
- Business owners and Entrepreneurs who would like to analyse the financial strength of their own business
- Students aspiring to become financial analyst, Financial consultants or Finance managers
- Anyone who is keen to learn Finance and Investment or Financial Analysis
- Stock market investors who would like to enhance their ability to evaluate stocks for long term investment
- Students undergoing professional courses in Finance like CFA, CA, MBA etc for better understanding of the subject
You being a keen learner in quest of knowledge, our courses are designed and structured specially for you.
About our courses:
Our courses are designed to give you an in-depth knowledge in a manner which is easy to understand and difficult to forget. Emphasis is given to the fundamentals rather than bookish literature so as to make your foundation strong.
About the Instructor:
Col (Dr) Shabbar Shahid is an Army veteran and a mechanical engineer with over 38 years of experience. Qualified as a post graduate engineer coupled with a masters degree in financial management, a PhD and a passion for teaching he continues to be a learner. He is also a fellow of the Institution of Engineers (India) and a Chartered Engineer. Apart from academic qualifications and several specialized Army courses, his versatile experience in understanding people across a wide spectrum will add to the value of his lectures. Retired from the Army in 2020, he now pursues his passion for teaching and manages a small consultancy firm called PRUDENCE Engineering and Financial Consultants of which he is the founder.
Knowledge is the only instrument of production which is not subject to diminishing returns.
An investment in knowledge gives consistent returns throughout life, and then to the next generation.