This course presents an introduction to financial statement analysis and its usage when assessing business performance. The first part of the course will focus on understanding the most important financial statements, namely, the balance sheet, the income statement, and the statement of cash flows. We will then focus on how we can understand the financial health and performance of the company by examining a number of important financial ratios that are derived from the financial statements of the company. Finally, we will be able to understand business performance across years comparing main results and indicators extracted from financial statements. Lectures on concepts will be supplemented with numerical examples and suggested readings.
Financial Accounting
Financial Accounting
This course is part of Data & Finance for the future Specialization
Instructor: Felipe Garrán
Included with 
Gain insight into a topic and learn the fundamentals.
Beginner level
Recommended experience
17 hours to complete
3 weeks at 5 hours a week
Flexible schedule
Learn at your own pace
What you'll learn
Interpret the main financial statements and reports
Understand business performance across time
Evaluate company results and peer comparison
Use financial ratios to diagnose the company's economic status
Skills you'll gain
Details to know
Shareable certificate
Add to your LinkedIn profile
Assessments
17 assignments
Taught in English
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This course is part of the Data & Finance for the future Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 5 modules in this course
In week1, we will cover an introduction to the balance sheet as business’ picture, focusing on accounting and its users and how a balance sheet is built. Next, we go on to understand the income and cash flow statements as business movies focusing on their principal accounts. Finally, we integrate the 4 statements using a restaurant as example.
What's included
8 videos5 readings5 assignments1 plugin
In week 2, we will cover: company’s financial condition and performance across time (horizontal analysis) and to a base amount (vertical analysis); margin – a profitability measure; EBIT and EBITDA (the income provided by the company’s business, the operating result); net income (the results for the company's shareholders); tax shield.
What's included
8 videos4 assignments
In week 3 we will better understand the balance sheet and important analyses we can perform with its data: liquidity ratios; receivables and inventories ratios; operational and financial liabilities; working capital; and cash cycle.
What's included
7 videos4 assignments
In week 4 we will discuss cash flow analysis, covering: cash flow from operations; cash flow from investing; cash flow from financing.
What's included
6 videos4 assignments1 plugin
In week 5 we will put everything together and perform a step-by-step analysis.
What's included
9 videos2 readings
Instructor
Offered by
Recommended if you're interested in Finance
IE Business School
Corporate Finance Institute
University of Illinois Urbana-Champaign
University of Pennsylvania
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