How to Analyse Financial Statements

Reading and interpreting financial information – developing your financial fluency
How to Analyse Financial Statements
File Size :
15.47 GB
Total length :
9h 27m



Ted Wainman MBA ACA


Last update




How to Analyse Financial Statements

What you’ll learn

How to analyse a set of financial statements
Profitability Ratios – Gross, Operating & Net Profit Margin analysis
Profitability Measures – EBIT, EBITDA & Operational Gearing
Return on Investment – ROI, ROCE, ROA, WACC, EVA
Efficiency Measures – Asset Turnover & Du Pont Analysis
Solvency – Debt:Equity; Leverage; Interest Cover; Net Debt to EBITDA; Du Pont Analysis revisited; ROE
Liquidity – Current Ratio; Acid Test; Working Capital Requirement
Cash Flow – OCF, NCF, FCF
Asset Valuation – relative & absolute valuation techniques; Dividend Cover & Yield; PE Ratio; Goodwill

How to Analyse Financial Statements


Basic understanding of finance
How a company is financially structured
How a company trades
How a company is financed


The ability to read and interpret financial information is a key skill for any aspiring business professional.  The workshop will take delegates through the key ratios that will help to read and interpret financial information.  From examining the profitability in the income statement, to assessing the strength of a balance sheet and on to the ability of a company to generate cash – this workshop will provide delegates with a the tools and the confidence to be able to assess the financial strength of a company in a short period of time.  Packed with helpful tips and using well-known companies, this workshop is a practical hands-on course, which clearly shows how to apply the theory to a wide variety of financial statements.We start with the basics of the key financial statements – what they are (income statement / balance sheet / cash flow statement) and how they interact.  We then look at reading and interpreting this financial information including: – Profitability analysis: Gross, Operation & Net Profit Margins; EBIT and EBITDA; Operational Gearing – Return on Investment: Return on Capital Employed (ROCE); Return on Assets (ROA); the Weighted Average Cost of Capital (WACC); the ability to generate value measured though the Economic Value Added (EVA) – Efficiency:  Asset Turnover; Du Pont Analysis (examining how the ratios interact) – Solvency: Debt to equity; Leverage; Interest Cover; Net Debt to EBITDA; Du Pont Analysis revisited; Return on Equity (ROE) – Working Capital: Current Ratio; Acid Test / Quick Ratio; Working Capital Requirement – Cash Flow: Operating Cash Flow (OCF); Net Cash Flow (NCF); Free Cash Flow (FCF) – Asset Valuation: fundamental v relative valuation; Dividend Cover & Yield; PE Ratios; Goodwill


Section 1: Introduction

Lecture 1 Introduction

Section 2: Where to find the Financial Statements

Lecture 2 Where to look

Section 3: The Key Financial Statements

Lecture 3 Introduction

Lecture 4 The Income Statement

Lecture 5 The Statement of Comprehensive Income

Lecture 6 The Balance Sheet

Lecture 7 Capital

Lecture 8 The Movement in Equity

Lecture 9 The Cash Flow Statement

Section 4: Profitability

Lecture 10 Introduction

Lecture 11 Gross, Operating & Net Margin

Lecture 12 EBITDA

Lecture 13 Operational Gearing

Section 5: Return on Investment

Lecture 14 Introduction

Lecture 15 Return on Investment

Lecture 16 Return on Capital Employed

Lecture 17 Return on Assets

Lecture 18 Weighted Average Cost of Capital

Lecture 19 Economic Value Added

Section 6: Efficiency

Lecture 20 Introduction

Lecture 21 Asset Turnover

Lecture 22 Du Pont Analysis (1)

Section 7: Solvency

Lecture 23 Introduction

Lecture 24 Debt & Equity

Lecture 25 Leverage

Lecture 26 Interest Cover

Lecture 27 Net Debt to EBITDA

Lecture 28 Du Pont Analysis (2)

Section 8: Working Capital

Lecture 29 Introduction

Lecture 30 Current Ratio

Lecture 31 Acid Test

Lecture 32 Working Capital Requirement

Section 9: Cash Flow

Lecture 33 Operating Cash Flow

Lecture 34 Net Cash Flow

Lecture 35 Free Cash Flow

Section 10: Asset Valuation

Lecture 36 Introduction

Lecture 37 Asset Valuation

Lecture 38 Dividend Cover

Lecture 39 Dividend Yield

Lecture 40 PE Ratio

Lecture 41 Goodwill: Market Cap to NAV

Section 11: Other information

Lecture 42 Introduction

Lecture 43 Audit Report

Lecture 44 Commitments & Contingent Liabilities

Lecture 45 Earnings Per Share

Lecture 46 The Notes to the Accounts

Lecture 47 The Business Model

Lecture 48 Economic Moat

Section 12: Review

Lecture 49 Review

Anyone interested in learning how to read and analyse a set of financial statements,Middle and Senior Managers,Aspiring business professionals

Course Information:

Udemy | English | 9h 27m | 15.47 GB
Created by: Ted Wainman MBA ACA

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