Practical Financial Statement Analysis
4.4 (5 ratings)
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Practical Financial Statement Analysis

Learn to analyze financial statement analysis using real examples from company filings
4.4 (5 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
25 students enrolled
Created by Jason Williams
Last updated 4/2017
English
Current price: $10 Original price: $75 Discount: 87% off
5 hours left at this price!
30-Day Money-Back Guarantee
Includes:
  • 4.5 hours on-demand video
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Analyze financial statements using practical tools and examples from company filings
  • Perform earnings, balance sheet and cash flow quality analyses by answering questions, detecting red flags, using common size analysis and ratio analysis
  • Understand how financial statements can be tweaked to meet operating targets
  • Read and interpret the 10-K
View Curriculum
Requirements
  • No additional materials are needed for the course
  • Have a basic understanding of the income statement, balance sheet and cash flow statement. No need to be an accounting expert.
Description

This course covers financial statement analysis using real examples from financial statements. I developed the course from my experience doing financial statement analysis for clients in various accounting and financial consulting roles over the years.  

The course is geared towards anyone interested in improving their financial statement analysis skills. Seasoned investors on Wall Street, individual investors, students, bankers and others looking for a practical way to analyze financial statements can benefit from this course.

The course teaches how to assess earnings, cash flow and balance sheet quality using practical examples. It explains how the types of questions to answer when analyzing financial statements, how to detect red flags, how to use common size size and ratio analysis to uncover hidden risks, and how to read and interpret the 10-K. 

Learn what to look for when analyzing financial statement items such as revenue, inventories, income taxes, pensions, stock-based compensation, stock buybacks, reserves, among others. The course includes a list of red flags you can use in your financial statement analysis.

The course is a video format utilizing PowerPoint slides. No material is needed for the course, except writing materials if the student wishes to take notes. 

This course is designed to be different from other financial statement analysis courses. While there will be some overlap, the areas I focus on in this course are based on information gleaned from actually working with investors and and other clients, and getting to understand the areas they are most concerned about. The real world experience applied to this course is what differentiates it.



Who is the target audience?
  • This course can help both students who want to get started in financial statement analysis and experienced analysts and investors either seeking to brush up on their accounting analytical skills or learn something new. Students should have at least a basic understanding of the three main financial statements.
  • Investment professionals
  • Accounting and financial analysts
  • Individual investors
  • Accounting, investment, finance and business students
  • This course is not intended for those who want to learn the basics of accounting such as debits and credits
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Curriculum For This Course
45 Lectures
04:33:11
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Course Introduction and Financial Statement Analysis Overview
4 Lectures 18:34

Course introduction, instructor background and intended audience

Preview 03:54

Learn the definition of financial statement analysis, why it is important and who can benefit from it

Preview 05:46

The four-step financial statement analysis process I recommend.

Preview 04:23

An example of how to separate core earnings from non-core earnings

Earnings Quality Analysis Example
04:31
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Earnings Quality Analysis
10 Lectures 58:48

Introduction to and the usefulness of earnings quality analysis

Preview 02:26

In this lecture I will demonstrate how to answer the first question from Step 1 of Earnings Quality Analysis: Are Earnings from the Core Business?

Earnings Quality Analysis Step 1: Are Earnings from the Core Business?
08:53

In this lecture I will demonstrate how to answer the second question from Step 1 of Earnings Quality Analysis: Are Earnings Recurring or Non-recurring? The lecture includes an example on how changes in Ford Motor Company's accounting for pension expenses impacted the company's earnings.

Earnings Quality Analysis Step 1: Are Earnings Recurring or Non-Recurring?
05:59

In this lecture I will demonstrate how to answer the third question from Step 1 of Earnings Quality Analysis: Are Earnings Subject to Management Judgment?

Earnings Quality Analysis Step 1: Are Earnings Subject to Management Judgment?
10:38

This is the first of a two-part lecture on the fourth question from Step 1 of Earnings Quality Analysis: Is the Company Converting Earnings to Cash?

Earnings Quality Analysis Step 1: Is the Company Converting Earnings to Cash?
03:51

This lecture presents an example using Twenty-First Century Fox to answer the question of whether the company is converting its earnings to cash?

Earnings Quality Example: Is the Company Converting Earnings to Cash?
05:16

Learn how to do a common size analysis of the income statement.

Earnings Quality Analysis Step 2: Common Size Income Statement
05:48

A common size analysis of Vertex Pharmaceutical's 2015 income statement.

Preview 05:56

An example of a common size analysis using Vertex Pharmaceuticals

Earnings Quality Analysis Step 3: Ratio Analysis
06:27

Earnings quality analysis conclusion: combining steps one through four.

Earnings Quality Analysis Step 4: Putting It All Together
03:34
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Balance Sheet Quality Analysis
7 Lectures 34:37

Introduction to balance sheet quality analysis and and how to distinguish between a high-quality and a low quality balance sheet.

Preview 03:24

Introduction to Balance Sheet Quality Analysis Step 1
02:29

Answer questions one and two of Step one of balance sheet quality analysis: Are the assets and liabilities fairly stated and are there hard-to-value assets and liabilities? 

Preview 05:17

Answer questions three and four of Step one of balance sheet quality analysis: Do asset maturities match liability maturities and how liquid/leveraged is the balance sheet? 

Balance Sheet Quality Analysis Step 1 - Questions 3 and 4
05:28

Balance sheet common size analysis using an example from Vertex Pharmaceuticals.

Balance Sheet Quality Analysis Step 2: Common Size Balance Sheet
09:55

Balance Sheet Quality Analysis Step 3: Ratio Analysis
04:41

Balance sheet quality analysis conclusion: combining steps one through four.

Balance Sheet Quality Analysis Step 4: Putting It All Together
03:23
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Cash Flow Quality Analysis
3 Lectures 17:25

Introduction to cash flow analysis and understanding the different types of cash flows

Introduction to Cash Flow Quality Analysis
03:31

Answer questions related to cash flows: are cash flows from the core business, are cash flows recurring or non-recurring, and are there adjustments to make to free cash flows.

Cash Flow Quality Analysis Step 1
09:02

Ratio analysis for operating cash flows and wrap up of cash flow quality analysis.

Cash Flow Quality Steps 2 and 3: Ratio Analysis and Putting It All Together
04:52
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Section 5 - Financial Statement Analysis Conclusion
1 Lecture 07:22

Combining earnings quality, balance sheet quality and cash flow quality analyses to form an overall opinion on the quality of the financial statements.

Financial Statement Analysis Conclusion
07:22
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Section 6: Reading and Interpreting the 10-K
20 Lectures 02:16:25

Overview of the four parts and main items in the 10-K.

Preview 05:53

Learn how to identify significant risks and analyze financial data. Includes examples from Level 3 Communications and HP Inc. 

10-K Items 1A Risk Factors and Item 6 Selected Financial Data
07:32

The first of two lectures on MD&A. This lecture covers the results of operations and liquidity resources sections of the MD&A, and includes examples from Opko Health's 2015 10-K.

Item 7: Management's Discussion & Analysis - Part 1
08:09

The second of two lectures on MD&A. This lecture covers the critical accounting estimates and contractual obligations and commitments sections of the MD&A, and includes examples from Popular Inc.'s and Opko Health's 2015 10-Ks.

Item 7: Management's Discussion & Analysis - Part 2
07:53

This lecture is an overview of Item 8 - Financial Statements and Supplementary Data.

Item 8: Financial Statements and Supplementary Data
03:49

Learn what to look for when analyzing revenue, including an example from Boeing's 2015 10-K.

Item 8: Financial Statements - Revenue
09:55

Understanding and analyzing stock-based compensation, including an example from Oracle's 2015 10-K.

Item 8: Financial Statements - Stock-based Compensation
09:11

What to look for when analyzing pensions.

Item 8: Financial Statements - Pensions
07:43

This is the first of two lectures on how to analyze income taxes, and includes an example from IBM's 2015 10-K.

Item 8: Financial Statements - Income Taxes
10:12

This is the second of two lectures on how to analyze income taxes.

Item 8: Financial Statements - Income Taxes Part 2
05:26

Learn what to look for when analyzing mergers and acquisitions.

Preview 06:28

How to analyze intangible assets.

Item 8: Financial Statements - Intangible Assets
04:39

What to look for when analyzing financial instruments.

Item 8: Financial Statements - Financial Instruments
07:40

What to look for when analyzing receivables.

Item 8: Financial Statements - Receivables
03:55

What to look for when analyzing inventories.

Item 8: Financial Statements - Inventories
05:47

What to look for when analyzing property, Plant and Equipment.

Item 8: Financial Statements - Property, Plant & Equipment
05:59

Understanding the different types of reserves and how to analyze reserves.

Item 8: Financial Statements - Reserves
06:33

How to estimate the impact of share repurchases on earnings per share. Includes an example showing the impact of IBM's 2015 share repurchases on the company's earnings per share.

Item 8: Financial Statements - Earnings per Share
10:00

Discussion of other important 10-K items.

Other 10-K Items
05:47

Course recap and conclusion.

Conclusion
03:54
About the Instructor
Jason Williams
4.4 Average rating
5 Reviews
25 Students
1 Course
Accounting, Finance and Investing Professional

Jason Williams is an entrepreneur, accountant and investment professional, with two decades of experience in the public and private sector. Jason has worked in Credit Suisse's Accounting and Tax Research Group, the Public Company Accounting Oversight Board and Glass Lewis and Company, a corporate governance and forensic research firm. He has a Bachelors degree in Management Studies from the University of the West Indies, Jamaica and an MBA from the University of Connecticut. Jason is also a CPA and a Chartered Accountant, and holds Series 7, 63, 86 and 87 securities licenses.