How to Read a Balance Sheet

Learn Balance Sheet Reading Skill of a Lender and Investor.
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  • Lectures 64
  • Length 3.5 hours
  • Skill Level Beginner Level
  • 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 7/2014 English

Course Description

Financial Statements of Business Unit basically comprises Profit & Loss Statement (Income Statement) and Balance Sheet. Income Statement will convey where as Balance Sheet will convey the financial position of the unit.

Financial Statements will be used by various stake holders for various purposes.

Investors will analyse the financial statements before taking decision to invest in Business Unit.

Investors will analyse the financial Statements before lending money to the Business Unit.

Tax and Statutory Authorities will review financial statements for levying various Taxes.

Hence the financial statements will be used by various stake holders. Therefore every key personnel and every one working in an Organization's balance Sheet before stake holders raises unanswerable Questions.

Developing the skill to read Balance Sheet will help the Business units to understand their standing and analyse strength and weakness and plan for future.

One should develop the skill to read the Balance Sheet from various perspectives. This course will you provide all those perspectives.4

This course has been designed in self paced learning style. Hence, Learners will able to understand the concepts at their own place, timing and Convenience.

Numerous and illustrations has been used to make the understanding process simple and clear .

What are the requirements?

  • This course does not require any basic knowledge in Accounting or Finance

What am I going to get from this course?

  • By the end of the course, You will understand importance of Financial Statement
  • By the end of the course, You will learn how to read Balance Sheet
  • By the end of the course, You will understand, aspects looked into by the Investors/Lenders in the Balance Sheet.

What is the target audience?

  • Non-Finance Executives
  • CEO's / M.D's
  • Department Heads
  • MBA Student
  • Aspiring Entrepreneurs
  • Bankers
  • Banking Aspirants

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: Introduction to Balance Sheet
1 Introduction to Balance Sheet
Preview
06:07
2 Why reading balance sheet is important
02:34
3 What is important in Reading Balance Sheet
01:15
4 Structure of Balance Sheet
02:28
Section 2: Three Important Balance Sheet Reading Skills
5 First Balance Sheet Reading Skill Understanding Long Term Stability
Preview
06:21
6 Second Balance Sheet Reading Skill Understanding Liquidity Position
10:57
7 Third Balance Sheet Reading Skill
08:36
Section 3: Balance Sheet Reading through Financial Ratios
Financial Ratio Analysis
Preview
09:09
Current Ratio
10:07
Quick Ratio
04:01
Absolute Liquid Ratio
02:49
Defense Interval Ratio
01:47
Capital Structure Ratio (Equity Ratio)
02:36
Capital Structure Ratios (Debt Ratio)
02:00
Capital Structure Ratios (Debt to Equity Ratio)
02:53
Coverage Ratios (DSCR)
04:30
Interest Coverage Ratio
03:04
Preference Dividend Coverage Ratio
00:57
Capital Gearning Ratio
03:40
Activity Ratios
00:44
Capital Turnover Ratio
02:44
Fixed Assets Turnover Ratio
02:00
Total Assets Turnover Ratio
03:02
Working Capital Turnover Ratio
00:41
Inventory Turnover Ratio
04:59
Inventory Holding Level
02:20
Debtors Turnover Ratio
05:33
Creditors Turnover Ratio
05:11
Average Payment Period
02:29
General Profitability Ratios
02:40
Gross Profit
01:40
Operating Ratio
04:15
Operating Profit Ratio
01:10
Average Collection Period
03:11
Expense Ratios
02:27
Net Profit Ratio
00:53
Overall Profitability Ratios
01:04
Return on Assets
07:38
Return on Capital Employed
02:23
Return on Share Holders Funds
01:13
Return on Equity Share Holders Funds
01:48
Earnings Per Share
00:41
Cash Flow Earnings
01:46
Dividend Per Share
00:47
Dividend Pay Out Ratio
01:53
Dividend Yield Ratio
01:05
Illustration on Return on Equity Share holders Funds
04:12
Market Value Ratio
00:47
Earnings Yield Ratio
00:38
Price Earnings Ratio
04:25
Price to Cash Flow Ratio
00:55
Market Value to Book Value Ratio
02:14
Section 4: Balance Sheet Reading through Fund Flow Statement
Fund Flow Analsyis Introduction
Preview
06:56
Fund Flow Analysis Example
07:32
Uses of Fund Flow Statement
01:55
Section 5: Balance Sheet Reading through Cash Flow Statement
Cash Flow Introduction
Preview
04:13
Cash Flow Activities
01:38
Cash Flow Operating Activities
04:46
Cash Flow Investing Activity
01:14
Cash Flow Financing Activity
01:15
Section 6: Others
Business Financing Decisions
Preview
02:02
Debt Vs Equity Financing
06:25
Good Time and Bad Time for Debt Equity Financing
08:56
Bonus Lecture - Discount Coupon Links for other Courses
8 pages

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Instructor Biography

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.

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