Accounting & Financial Statement Analysis: Complete Training

Course Content

Module 1: Introduction to Accounting Principles

• Lesson 1.1: Basics of Accounting
  • Overview of accounting principles and concepts.
  • Understanding double-entry accounting and the accounting equation.
• Lesson 1.2: Financial Reporting Standards
  • Introduction to GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).
  • Importance of regulatory compliance and financial transparency.

Module 2: Financial Statements Overview

• Lesson 2.1: Income Statement Analysis
  • Understanding the components of the income statement.
  • I am analyzing revenue, expenses, and profitability ratios.
• Lesson 2.2: Balance Sheet Analysis
  • Interpretation of balance sheet items (assets, liabilities, equity).
  • Analyzing liquidity, solvency, and leverage ratios.

Module 3: Cash Flow Statement Analysis

• Lesson 3.1: Cash Flow Statement Overview
  • Purpose and structure of the cash flow statement.
  • Operating, investing, and financing activities.
• Lesson 3.2: Cash Flow Analysis Techniques
  • Analyzing cash flow patterns and trends.
  • Free cash flow calculation and interpretation.

Module 4: Financial Ratios and Indicators

• Lesson 4.1: Liquidity Ratios
  • Current ratio, quick ratio, and cash ratio.
  • Interpretation of liquidity ratios and implications for financial health.
• Lesson 4.2: Profitability Ratios
  • Gross margin, operating margin, and net profit margin.
  • Return on assets (ROA) and return on equity (ROE) analysis.

Module 5: Financial Statement Analysis Techniques

• Lesson 5.1: Trend Analysis
  • Analyzing financial statement trends over time.
  • Identifying growth patterns and performance trends.
• Lesson 5.2: Ratio Analysis
  • Calculating and interpreting key financial ratios.
  • Benchmarking ratios against industry standards and peers.

Module 6: Evaluating Business Performance

• Lesson 6.1: DuPont Analysis
  • Decomposing return on equity (ROE) using the DuPont formula.
  • Identifying drivers of ROE and assessing business performance.
• Lesson 6.2: Economic Value Added (EVA)
  • Understanding the concept of economic profit.
  • Calculating and interpreting economic value added.

Module 7: Advanced Financial Statement Analysis

• Lesson 7.1: Financial Statement Forecasting
  • Forecasting revenue, expenses, and cash flows.
  • Sensitivity analysis and scenario planning.
• Lesson 7.2: Credit Analysis
  • Evaluating credit risk using financial statement analysis.
  • Assessing the creditworthiness of borrowers and counterparties.