Interpreting financial statements

Achieve proficiency in interpreting the financial statements of a company. Learn how to prepare financial ratios.
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1,384 students enrolled
Instructed by Gabriel Dragne Business / Finance
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  • Lectures 54
  • Length 2 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 10/2015 English

Course Description

This new course starts from the grounds of financial statements and show how they are obtained in the first place. Then it expands on the three main financial statements: balance sheet, income statement and cash flows, by showing their advantages and disadvantages, what they tell and what they hide from the viewer, how they differ from each other and how they are linked. We will focus a lot on the cash implications of financial statements, and by the end of this course we will be able to use cash flows to evaluate the health of a company and we will be able to understand, prepare and analyze “most wanted” financial ratios. Moreover, we will grasp what you need to know on adjacent subjects like weighted average cost of capital, valuation methods, mergers and acquisitions, currency translation and others. Every topic is presented from an industry best practice perspective and is accompanied by a final quiz to test your progress. Besides using small study cases that illustrate particular areas, we will be accompanied throughout the course by a four year period financial data of a study company, for which we will recreate and interpret together the cash flow statements and ratios for three years. It shall be optional, however advisable, that you will continue our endeavor and derive the cash flows statement and ratios, together with their interpretation, for the last year of the analysis. No worries, I will provide permanent assistance should you need additional help to finalize the homework.

If you’re a finance student, an entrepreneur or a finance professional willing to expand on financial statements knowledge, this course if for you, as you will find a lot of new or untold information, perfectly structured and covering all hot topics. If you’re rather new to finance matters, this course if perfect to build a solid knowledge, however you should be at least familiarized with the finance jargon. However, even if you did not experienced financial statements before, the course content does not leave you with missing pieces for the financial statements puzzle. Basic mathematical skills are a prerequisite and you will also need access to a computer with installed Microsoft Excel and basic Excel skills to finalize the analysis.

This course consists of videos lectures and shall require more than three hours of your time, with estimations for the homework analysis to account for another three hours.

I am assured that after taking this course, you will be confident in analyzing financial statements and be able anytime to prepare and interpret the cash flow statement and the financial status for any given company.

Let’s get started!

What are the requirements?

  • Basic finance jargon is expected
  • Basic mathematical skills
  • Already familiar with Microsoft Excel

What am I going to get from this course?

  • Interpret financial statements - balance sheet, income statement, cash flows statement
  • Prepare cash flows statement for any given company
  • Prepare and interpret 25 world-wide known financial ratios
  • Evaluate the financial health of a company
  • Get acquainted with "must know" finance matters - valuation, mergers and acquisitions, etc

What is the target audience?

  • Best suited for beginners and experienced individuals with an interest and minimal knowledge in finance

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: About the course
Course outline and goals
01:13
Section 2: Introduction to accounting
Debit=Credit formula
01:26
Balance sheet formula (Assets = Liabilities + Equity)
00:44
Accounts and trial balance
03:03
Case study: Preparation of financial statements
04:52
More on preparation of financial statements
02:12
Introduction to accounting
16 questions
Section 3: Balance sheet
Introduction to balance sheet
03:12
Assets
06:48
Liabilities
03:41
Equity
03:56
Weighted average cost of capital
02:44
Book value versus market value
01:32
Balance sheet
25 questions
Section 4: Income statement
Overview of income statement
05:20
Segment reporting
01:18
A word on tax on profits
01:31
Adjusted EBITDA
00:37
Common-size and horizontal analysis
01:02
Income statement
12 questions
Section 5: Cash flows statement
Introduction to cash flows
01:17
Cash flows compared to income statement
02:31
Direct versus indirect method for preparing operating cash flows
01:58
Direct versus indirect method - case study
02:40
Cash flows from operating activities
02:27
Importance of operating cash flows
01:50
Cash flows from investing activities
01:01
Cash flows from financing activities
01:10
Reconciliation with cash and cash equivalents in the balance sheet
01:13
The benefits of the cash flows statement
01:35
Cash flows and the financial health of a company
01:27
Relationship between the three lines of cash flows
01:56
Introduction to free cash flows
01:16
Computation of free cash flows
01:46
The drawbacks of the cash flows statement
02:24
Cash flows statement
21 questions
Section 6: Financial ratios
Introduction to financial ratios analysis
02:09
Types of financial ratios
02:41
Relative comparison of ratios
02:41
Quality of income ratios
02:31
Liquidity ratios
03:06
Working capital ratios
05:29
Operating cycle
02:33
Turnover ratios
01:49
Profitability ratios
03:07
Return ratios
01:22
Leverage (debt) ratios
05:03
Cash flows ratios
02:46
Financial ratios
17 questions
Section 7: Other financial matters
Currency translation of financial statements
01:41
Mergers and acquisitions
01:26
Summary of valuation techniques
02:25
Other financial matters
3 questions
Section 8: Case study - Preparing cash flows
Preparing operating cash flows
04:45
Preparing investing cash flows
03:34
Preparing financing cash flows
01:21
Complete cash flows picture
01:40
Cash flows bridge chart
01:03
Homework
00:38
Case Study - Preparation of cash flows
6 questions
Thank you note
00:05

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Instructor Biography

Gabriel Dragne, Associate Chartered Banker & Management Consultant

Hi! My name is Gabriel Dragne. I’m 32 years old and I’m from Bucharest, Romania.

I'm a Finance graduate and since 2015, I am an Associate Chartered Banker with the Chartered Institute of Bankers in Scotland and a member of Mensa International. I'm also holding Advanced Diplomas in Financial Management and International Financial Reporting with the Association of Chartered Certified Accountants (ACCA).

Since 2006, I have been working for two international management consulting firms, BDO and PricewaterhouseCoopers. It’s only recently that I shifted my career to financial reporting area. By now, I’ve taken part in more than 100 projects involving mergers and acquisitions, business planning, valuation and management consulting.

I helped many of my friends to successfully pass their ACCA exams by providing them a simple approach to understand examined subjects. They encouraged me to expand my teaching to the world, so here I am :) With a great passion for corporate finance and helping people in their studies, and given my accumulated work knowledge, I will focus on delivering clear, concise and innovative experienced-driven financial studies that will offer students a fast-track but thorough path to expanding their skills.

Above and beyond finance matters, I will happily share thoughts on running, board games, innovative design or any spiritual ideas.

Let's get started!



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