Financial Statement & Decision Analysis

Course details

Financial Statement & Decision Analysis

Fundamentals of Financial Statement and Decision Analysis, Vertical and Horizontal Analysis, Understanding Annual Report.

This course will teach you the fundamentals of financial statement and decision analysis, with a focus on the balance sheet. One of the most basic qualities in the corporate world is the ability to assess a company's results. And, let's be honest, it's not easy. It necessitates an in-depth knowledge of shareholder preferences, performance, liquidity, risk control, and operational quality. This course is designed to teach this dynamic analysis in the most straightforward manner possible. To get started, you don't need any accounting or finance experience.

The course explains the basic material of financial statements in a clear and important context by visiting a real enterprise and interviewing real business people. The course's aim is to leave students with a lasting understanding of what a balance sheet is and what it shows. This training is aimed at non-financial mid-to senior-level executives from all sectors and functional areas. This course would benefit executives in communications, distribution, human resources, manufacturing, or engineering, as well as general managers who have been advanced along these paths, through their knowledge of financial analysis. After completing the program, you will be better able to communicate the financial goals and performances of your department within your organization as well as to outside sources. So, at the end of this course, you won't just know how to read financial statements in general; you'll also know how to relate them to your own company's financial statements, giving you a much greater view of your own company's financial success and what you can/need to do to either sustain or enhance it.

What you'll learn : 

• Vertical and horizontal analysis - In this section, we will see vertical and horizontal analysis of an income statement results in every income statement amount being restated as a percent of net sales.
• Cash flows and asset efficiency - In this section, we will learn Cash flow on total assets is an efficiency ratio that rates actually cash flows to the company assets without being affected by income recognition or income measurements.
• Understanding annual report - In this topic, we will see how every company is required by law to prepare a report for shareholders, which provides the details of the performance of the company over the year.
• Balance sheet horizontal - In this section, we will learn that the horizontal balance sheet uses extra columns to present more detail about the assets, liabilities, and equity of a business.
• Income statement analysis - In this topic, we will see how income statement analysis is used to determine how individual line items relate to each other.
• Cash flow - In this topic, we will see how cash flow is calculated by making certain adjustments to net income by adding or subtracting differences in revenue, expenses, and credit transactions.
• DuPont analysis - In this section, we will see the multi-step financial equation that provides insight into a business's fundamental performance.

Updated on 11 November, 2021