Modern Financial Statement Analysis

This courses teaches how to use basic analysis tools (called ratios) to conduct a fundamental analysis.

Ratings 4.33 / 5.00

What You Will Learn!

Explore the purpose of financial statement analysis.
Recognize how to use common-size financial statements to compare financial statements across years and between companies.
Explore the DuPont framework and how return on equity can be broken out into profitability, efficiency, and leverage components.
Explore how to use cash flow information to evaluate cash flow ratios.

Description

In this course, we will learn how to use basic analysis tools (called ratios) to conduct a fundamental analysis of a company's financial statements. This analysis will provide insights into a company's performance and will help identify areas of concern.

We will introduce you to some of the more common financial ratios and their uses. We will also introduce you to the DuPont framework, which is one useful way to structure the analysis of financial ratios. Finally, we will explain the use of common-size financial statements, which are easy to prepare, easy to use, and should be the first step in any comprehensive financial statement analysis.

Keep in mind that this is merely an introduction to financial statement analysis — there are entire textbooks devoted to this topic. Our objective is simply to expose you to some of the basic tools to help you start to understand what financial statements can tell us about the operations of a business.

If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Analyzing Financial Statements. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.