Financial Statement Fundamentals

Read and Interpret: Income Statement, Balance sheet, and Cash Flow Statement

What you'll learn

Describe the key financial statements and why all three are needed to get a true understanding of the financial health of a company

Perform ‘horizontal analysis' of a company by looking at trends across accounting periods

Calculate ratios used by equity analysts to assess the operational efficiency of a company

Assess if a company has been able to provide stakeholders with sufficient returns on their investments

Requirements

The course is for anyone looking to enter the world of finance and into the global markets division of an investment bank.

Description

Understanding and interpreting the income statement, balance sheet, and cash flow statement are essential skills for any finance industry role. This financial analysis course will teach you to read and interpret all three financial statements using real-life companies, enhancing your ability to assess companies from both operational and financial perspectives. Designed to provide financial analysts with a fundamental understanding necessary for career advancement, this course is ideal for those working in investment banking, asset management, or insurance.This course offers a comprehensive curriculum that delves into the intricacies of financial statements, equipping you with the skills to conduct thorough and insightful financial analyses. By examining real-life companies, you will gain practical experience in evaluating financial health and performance, enabling you to make informed decisions and recommendations.Moreover, the course is tailored for individuals aiming to enter the finance sector, particularly within the global markets division of an investment bank. It caters to both students and professionals who aspire to enhance their analytical capabilities and perform meaningful financial analysis. The knowledge gained from this course will be invaluable for anyone looking to build a successful career in finance, providing a strong foundation in financial analysis that is crucial for navigating the complexities of the financial world. Whether you are a student, recent graduate, or a professional seeking to upskill, this course will empower you with the expertise to excel in your finance career.

Overview

Section 1: Primary Financial Statements

Lecture 1 The Income Statement

Lecture 2 The Balance Sheet

Lecture 3 The Cashflow Statement

Lecture 4 Type of Cash Flows

Section 2: Trend and Ratio Analysis

Lecture 5 Trends

Lecture 6 Gross Margin

Lecture 7 EBIT and EBITDA margin

Lecture 8 Net Margin

Lecture 9 Depreciation

Section 3: Asset Utilisation and Working Capital Analysis

Lecture 10 Asset Turnover

Lecture 11 Inventory Days

Lecture 12 Receivables Days

Lecture 13 Payables Days

Lecture 14 Working Capital

Section 4: Performance Analysis

Lecture 15 Return on equity ROE

Lecture 16 Return on capital employed – ROCE

Section 5: Credit Ratios

Lecture 17 Gearing

Lecture 18 Leverage

Lecture 19 Interest cover

It is for all students and professionals who wish to perform meaningful and practical company’s financial analysis