Introduction to Financial Statement Analysis

Learn how to analyse financial statements through comprehensive example of a company
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  • Lectures 25
  • Length 1.5 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 3/2016 English

Course Description

Financial Statement Analysis topic is in the curriculum of students studying accounting, finance or business related subjects at the top Universities in the world. This emphasizes the importance of this subject as a foundation of financial knowledge. While this topic is very broad and whole textbooks are dedicated to this subject, this course focuses only on the things that the students with beginner level knowledge need to know. This makes the course easy to follow, saves you time, and prevents you from being lost in the complicated data.

After completion of this course, you will have a solid understanding of financial statements, and be able to use the data contained in these statements to evaluate the performance of the firm. Who knows maybe you will become a successful investor, an entrepreneur, a finance analyst, an accountant or an auditor in the future? Then, there is no way to avoid this subject and you need to start by learning basics first.

The course is structured so that you will move up the ladder of necessary topics. First, the course builds your foundation on main financial statements: The Balance Sheet, The Income Statement, The Cash Flow Statement and The Statement of Stakeholder’s Equity. Then, in the second part, it shows how to extract more information from these financial statements using Ratio Analysis. It covers main ratios such as Profitability (Gross Margin, Operating Margin, EBIT Margin and Net Profit Margin), Liquidity (Current Ratio, Quick Ratio, and Cash Ratio), Working capital ratios (Accounts Receivable Days, Accounts Receivable Turnover, Accounts Payable Days and Accounts Payable Turnover, Inventory Days and Inventory Turnover ratios), Interest coverage, Leverage, Valuation ratios (Market-to-Book ratio, Price-Earning ratio and Enterprise Value), Operating returns ratios (Asset Turnover, Return on Equity, Return on Assets, Return on Invested Capital) and shows how to calculate them and how to use them to interpret financial results. We will also discuss main factors to consider before making any decisions about the performance. All these topics are explained through a comprehensive example of a fictitious company that I have created to make it easier for you to understand and remember. Also, you will get a full summary of the ratios and their interpretation which will make it easier for you to learn from a single source. Finally, you will get a total of 40 multiple choice questions designed by me to test your knowledge on covered material.

I guarantee that this course will always be up to date.

Finally, this course comes with Udemy’s 30-day unconditional full money back guarantee. If you are not satisfied with the course, you can claim your money back with a simple push of a button at no risk to you.

As always, I am here to help you with any questions that you have or concepts that are difficult to understand. Feel free to contact me via discussion forum or private message. I am more than happy to provide my support and you will receive an answer within 24 hours.

What are the requirements?

  • This is an introductory course and no prior knowledge of accounting or finance is required.
  • All the materials will be provided (including lectures, readings, exercises, and exams)
  • Students will need just a notebook, pen and calculator

What am I going to get from this course?

  • Understand the Balance Sheet and its components
  • Understand the Income Statement and its components
  • Understand the Cash Flow Statement and its components
  • Understand the Statement of Stakeholder’s Equity and other financial statement information
  • Calculate and interpret profitability ratios
  • Calculate and interpret liquidity ratios
  • Calculate and interpret working capital ratios
  • Calculate and interpret interest coverage and leverage ratios
  • Calculate and interpret valuation ratios
  • Calculate and interpret operating returns ratios

What is the target audience?

  • Accounting and Finance students
  • Students with non-finance or non-accounting degrees who are interested in the topic
  • Non-specialists interested in the subject
  • Anyone who wants to be familiar with the company’s financial reports and their interpretation
  • This course is for beginners and is NOT for those who already have deep accounting and financial statements analysis knowledge

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 The Course
03:38

Welcoming speech, a little about me and course overview.

Article

Please make yourself familiar with Udemy rating&review process through this file.

00:58

Financial Statements definition. Introduction to main financial statements.

02:20

Brief look at the requirements for the preparation of financial statements.

Section 2: Main Financial Statements and Other Financial Information
01:55

Section overview and learning outcomes.

02:41

This lecture looks at the definition and example of the Balance Sheet.

04:08

In this lecture we start to examine the Balance Sheet in more detail. We look at Assets section of the Balance Sheet.

03:23

In this lecture we examine liabilities section of the Balance Sheet and its components.

04:00

In this lecture you will see how asset and liabilities organize stakeholder's equity section.

05:48

This lecture examines another main financial statement- the Income Statement. We look at its components and learn how to construct it.

08:21

This lecture examines another main financial statement- the Cash Flow Statement. We look at its components and learn how to construct it.

03:20

Brief overview of the Statement of Stakeholder's Equity and other information contained in the annual reports of firms.

Article

This exercise will summarize what you learned in this section.

25 questions

In this exam you are provided with 25 multiple choice questions. These questions are designed to improve your knowledge and understanding of the topics covered in this section. Each question has one and only one correct answer. Please, write your answers and check them with the correct answers provided at the end. I encourage you to go back to the sections where you made a mistake and revise the relevant lecture.

Grading is as follows:

24-25 correct answers -“class 1” (excellent);

20-23 correct answers- “class 2” (very good)

17-19 correct answers- “class 3” (good)

15-16 correct answers- “class 4” (moderate)

0-14 correct answers- “class 5” (need to improve)

Please, take this exam and post your result in the discussion forum. Also post any questions that you have. Good Luck and Enjoy!

Section 3: Analysis of Financial Statements: Ratio Analysis
03:13

Introduction to the section and section overview.

04:37

Learn how to calculate and interpret 4 Profitability Ratios: Gross Margin, Operating Margin, EBIT Margin and Net Profit Margin Ratios.

03:44

Learn how to calculate and interpret 3 Liquidity Ratios: Current Ratio, Quick Ratio, and Cash Ratio.

06:48

Learn how to calculate and interpret 6 working capital ratios: Accounts Receivable Days, Accounts Receivable Turnover, Accounts Payable Days and Accounts Payable Turnover, Inventory Days and Inventory Turnover ratios .

02:14

Learn how to calculate and interpret EBIT to Interest and EBITDA to Interest ratios.

03:24

Learn how to calculate and interpret Debt-Equity and Debt-to-Capital ratios.

02:40

Learn how to calculate and interpret Market-to-Book ratio, Price-Earning ratio and Enterprise Value ratio.

04:42

Learn how to calculate and interpret Asset Turnover, Return on Equity, Return on Assets, Return on Invested Capital ratios.

04:45

In this lecture we look at the main limitations of ratio analysis and factors to consider before making any decisions.

Article

This is a table that summarizes all the ratios we have covered in this section and their interpretation.

15 questions

Analysis of Statements: Ratio Analysis

Instructions:

In this exam you are provided with 15 multiple choice questions. These questions are designed to improve your knowledge and understanding of the topics covered in this section. Each question has one and only one correct answer. I encourage you to go back to the sections where you made a mistake and revise the relevant lecture. Please, take this exam and post your result in the discussion forum. Also post any questions that you have. Good Luck and Enjoy!

Section 4: Summary
01:30

Concluding comments to the course and "Thank You" note.

Article

It is great that you finished all 100% of the course. Please, now download you certificate.

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Instructor Biography

Hi!

I am Nurlan Puchakhov - a highly motivated and entrepreneurial individual with the passion for learning and sharing my knowledge, strong teaching skills, and financial knowledge gained from varied work experience in the finance area and through best quality financial education at the University of Manchester, United Kingdom.

Do you want to easily read financial statements?

Do you want to understand the financial position of your favorite companies?

Do you want to interpret financial information?

If your answer is "Yes", then you are in the right place. Enroll in my courses. The skills that usually take 3-4 months to learn, you will learn in hours, with all the necessary information you need. Throughout my courses, I focus only on the information that you need to reach your learning target.

More about Nurlan:

My goals:

To bring useful financial, accounting, investment, business and management information to the general worldwide public.

To provide high-quality teaching, share my knowledge with all those interested in my topics at very low cost.

To enable others to learn the information, that takes months or even several years to learn, very quickly (in several hours)

My degree in Accounting and Finance at Manchester University equips me with the most useful skills and knowledge that I need to teach you. Through modules such as Financial Reporting and Accountability, Financial Statement Analysis, Management Accounting, Corporate Finance, Investment Analysis and many other, I gained very good knowledge of Finance, Accounting, Investments and Business Management areas.

Although I am very young, I had a chance to work in several companies and develop myself. I worked as a Finance summer analyst at BP and Ministry of Economy and Industry of the Republic of Azerbaijan, and as a Risk Management summer analyst at Kapital Bank in Azerbaijan.

I am originally from Azerbaijan. I live in Manchester, the United Kingdom for already 3 years now. Some of the things I love to do in my spare time include reading news, nerding out on entrepreneurship and startups, watching football ( big fan of Chelsea Football Club here!) and sharing meals and going out with friends and family.

I want to make it easier for you to learn and develop.


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