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Financial Statement Analysis: How to Do It Like a CFO

Gain insights on activity, liquidity, solvency, profitability & valuation ratios, along with spreadsheet tools & case studies for practical application.

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Last updated 6/2024
English

Overview

This course provides comprehensive instruction on computing and interpreting various fundamental ratios utilized in financial statement analysis, including:

What are Activity Ratios

  • Accounts Receivable Turnover
  • Days Sales in Accounts Receivable
  • Inventory Turnover
  • Days of Inventory on Hand
  • Accounts Payable Turnover
  • Number of Days of Payables
  • Cash Conversion Cycle

What are Liquidity Ratios

  • Current Ratio
  • Quick Ratio
  • Cash ratio
  • Defensive Interval and others

What are Solvency Ratios

  • Debt-to-Equity
  • Debt-to-Capital
  • Interest Coverage
  • Fixed Charge Coverage and others

What are Profitability Ratios

  • Gross Margin
  • Profit margin
  • Return on Assets
  • Return on Equity and others

What are Valuation Ratios

  • Earnings per Share
  • Earnings Yield
  • Price-Earnings Ratio
  • Dividend Yield
  • Dividend Payout and others

Course Overview

The course equips students with the skills to utilize spreadsheets for comprehensive company analysis using Sherwin-Williams, Facebook, and Kroger as case studies. This includes conducting Dupont analysis, accounting analysis, financial analysis, equity analysis, segment analysis, and credit analysis. Moreover, students will learn to interpret the results and recommend corrective measures to enhance company performance, while being mindful of potential distortions arising from specific accounting methods.

Additionally, students will be proficient in utilizing stock screening software to identify investment opportunities based on the ratios covered in the course.

The course provides the following resources:

  • PowerPoint slide handouts for the nineteen modules
  • Spreadsheet financial ratio packs for computing all ratios for Sherwin-Williams, Facebook, and Kroger
  • Blank spreadsheet for individual use with a company of choice
  • Ratio handouts offering a summary of all ratios and their computation

This comprehensive course aims to prepare students for successful careers in accounting and finance, providing insights into various areas such as:

  • Corporate finance
  • Investment banking
  • Private equity
  • Mergers and acquisitions
  • Hedge fund analysis
  • Retail and corporate banking
  • Business development
  • Financial consulting
  • Management consulting
  • Internal and external auditing
  • Risk management
  • Asset management

Who this course is for

Anyone working, or seeking employment, in the fields of finance and accounting, or anyone who desires to analyze companies to make stock investment decisions

Testimonials

  1. The starter course i was looking for with respect to reading & analyzing financial statements ~ Louis Y
  2. For a beginner like me, this course was very insightful, easy to follow and clear explanations & definitions. I am so happy for taking this course! ~ Kisha W
  3. Gave me a new look, understanding, and appreciation to reading revenue, cash, and expenses ~ M DeJesus
  4. I have definitely learned alot in this course! I have gained a decent understanding of what financial statements mean. This course has delivered what it promised ~ T Givans
  5. It was an eye opener, having things broken down in simpler terms ~ Cedric S
  6. Perfect for someone being newly introduced to understanding a companies finances ~ De'Jon F
  7. Would say for anyone looking to start or even increase their basic knowledge on financial statements this course is great ~ Tom C

What you'll learn

  1. Compute a complete set of activity, liquidity, solvency, profitability, and valuation ratios ratios to analyze a company
  2. Perform a Dupont analysis, equity analysis, segment analysis and credit analysis for a company
  3. Interpret the results of a complete ratios analysis
  4. Compare a company's performance to another company
  5. Interpret how several different accounting methods can skew the results of a ratio analysis
  6. Suggest remedial actions to improve a company's performance as revealed by a ratio analysis
  7. Find stock investments using stock screening software and the ratios we will learn in the course

Requirements

Have a basic knowledge of balance sheets and income statements.

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Course Content

4 Sections 23 Lectures 3h 18m total length

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