Corporate Finance 101: Financial Statement Analysis & Ratios

Dive into Financial Statement Analysis with our fun and easy guide, designed to connect the dots from numbers to real business insights.

  • Overview
  • Curriculum
  • Instructor
  • Review

Brief Summary

This course takes you on a fun journey through financial statements, helping you see how every detail fits into the bigger picture—just like connecting the dots in a coloring book!

Key Points

  • Learn to connect financial statements to the bigger picture
  • Understand key ratios that indicate company health
  • Explore case studies of popular companies

Learning Outcomes

  • Interpret and analyze financial statements like a pro
  • Calculate and understand various financial ratios
  • Recognize common accounting tricks and how to avoid them

About This Course

A zoom-in, zoom-out, connect-the-dots guide to understanding financial statements, and analysing companies

This is a zoom-in, zoom-out, connect-the-dots tour of Financial Statement Analysis

Let's parse that

  • 'connect the dots': Financial Statement Analysis gets a bad rep because its hard to connect the nitty-gritty of the financial statements to the company as a whole. This course makes a serious effort to do exactly that.

  • 'zoom in': Getting the details is very important in corporate finance - a small typo, or a minor misunderstanding can cost a company big. This course gets the details right where they are important.

  • 'zoom out': Details are important, but not always. You probably don't care about the nitty gritty of accounting for contingent liabilities if you don't know what accounts payable are. This course knows when to switch to the big picture.

What's Covered:

  • Corporate Finance Introduced: partnerships, proprietorships and the corporation

  • The Agency Problem: How auditors, the board of directors and the capital markets regulator play a role

  • Financial Statements: Balance Sheet, Income Statement, Statement of Comprehensive Income and Cash Flow Statement at exactly the right level of detail

  • Ratios: Five important types of ratios: liquidity ratios, leverage ratios, turnover ratios, profitability ratios and valuation ratios

  • Dupont's Identity: Return-on-equity can be decomposed into 3 elements: profits, asset-leanness and leverage.

  • External Financing Needed (EFN) and the Sustainable Rate of Growth: How fast can a company grow if it chooses to forgo external funding? Every startup should know this, really.

  • Common Accounting Shenanigans: The playbook of financial statement cheats has been studied by auditors and regulators - learn from history so you are not condemned to repeat it.

Case Studies:

Understanding a company entirely from its investor filings

  • Facebook: Fast-growing and profitable, this is the dream stock right now.

  • LinkedIn: Versatile, but struggling to break through - the jury seems out on LinkedIn

  • Twitter: Bleeding red and slowing growth - Twitter seems to be in trouble.

  • Interpret financial statements - the Balance Sheet, Income Statement and Statement of Cash Flows

  • Parse SEC filings such as the 10K and 10Q to understand the business model of any company entirely from its investor filings

  • Calculate ratios in all major categories: liquidity, leverage, turnover, profitability and valuation

Instructor

Profile photo of Loony Corn
Loony Corn

Loonycorn is us, Janani Ravi and Vitthal Srinivasan. Between us, we have studied at Stanford, been admitted to IIM Ahmedabad and have spent years  working in tech, in the Bay Area, New York, Singapore and Bangalore. Janani: 7 years at Google (New York, Singapore); Studied at Stanford; also worked at Flipkart and Microsoft Vitthal: Also Google (Singapore) and studied at...

Review
4.9 course rating
4K ratings
ui-avatar of Rashi Dhawan
Rashi D.
4.0
3 years ago

This course is very useful for those who wants to learn financial analysis of any company … course is very well explained and very easy to learn

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ui-avatar of Mackwin Clinton Dsouza
Mackwin C. D.
4.5
3 years ago

good

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ui-avatar of Jignesh Dave
Jignesh D.
5.0
3 years ago

It is very specific and broken down into pieces for a common man to understand.

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ui-avatar of Paco Lendinez
Paco L.
2.0
4 years ago

Very unbalanced. Go very deep in accounting details, but do not explain the big concepts.
Technically there is lack of synchronisation between sound and image many times
The accent is very far from standard English making some time very difficult to understand if you are not used to Indian English.

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ui-avatar of P. Le
P. L.
4.0
4 years ago

Good introductory course so far, covering the foundations from the ground up

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ui-avatar of Rashmi Poddar
Rashmi P.
4.5
4 years ago

its a good course to get idea on financial statement analysis

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ui-avatar of Mohammed Obaidullah Dilkash
Mohammed O. D.
4.5
4 years ago

Excellent course for those students who want to develop their careers in corporate finance. All these concepts related to corporate finance are being taught well with real life examples.

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ui-avatar of Rafi Hanna
Rafi H.
1.0
5 years ago

Lecturer has a strong accent and lectures so far have been very monotonous and lack good examples and graphics.

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ui-avatar of Anil Pankaj
Anil P.
4.5
5 years ago

Lots to revise on F&A fundamentals

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ui-avatar of Anjali Sharma
Anjali S.
4.5
5 years ago

The explanation to the concepts in the course was easy and clear to understand.The teaching pedagogy involving the live examples really helped in comprehending the concepts well.

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