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In this course you will learn the primary purpose of financial statement analysis, including examinig financial statements through the lens of an analyst who does not prepare the statements. You will also learn the premise upon which analysis can occur.

You will be introduced to the basic tools of analysis from a conceptual standpoint, including how to identify anomalies that appear during analysis, how to calculate and interpret ratios related to financial statements accounts, and how to combine certain related ratios in order to better understand the financial issues facing any company. Then we will apply these tools in a practice, problem-solving case.

In addition, you will learn how to gain an understanding of the dynamics of a business prior to performing financial analysis as a means of improving your skills in problem identification. We cover learning how fraud might impact the financial statements which could be identified during analysis in order to solve a fraud case.

You will apply these concepts through two real-world cases to test your skills in analysis. During the process we cover how to calculate return on invested capital by using the ROIC tree concept, and how to apply the ROIC tree in making day-to-day decisions to improve the return on invested capital as well as understanding the financial condition and profitability of a company.

Finally, we analyze future possibilities for improvements based upon past realities and learn methods used by management to increase the value of the company in the market place.

Learning Objectives

  • You will learn the primary purpose of financial statement analysis.
  • You will examine financial statements through the lens of an analyst who does not prepare the statements.
  • You will learn the premise upon which analysis can occur.
  • You will be introduced to the basic tools of analysis from a conceptual standpoint.
  • You will learn how to identify anomalies that appear during analysis.
  • You will learn the how to calculate and interpret ratios related to financial statements accounts.
  • You will learn how to combine certain related ratios in order to better understand the financial issues facing any company.
  • You will learn how to apply these tools in a practice problem-solving case.
  • You will learn how to gain an understanding of the dynamics of a business prior to performing financial analysis as a means of improving your skills in problem identification.
  • You will learn how fraud might impact the financial statements which could be identified during analysis in order to solve a fraud case.
  • You will apply these concepts through two real-world cases to test your skills in analysis.
  • You will learn how to calculate return on invested capital by using the ROIC tree concept.
  • You will learn how to apply the ROIC tree in making day-to-day decisions to improve the return on invested capital.
  • Understand how to evaluate the financial condition and profitability of a company.
  • Analyze future possibilities for improvements based upon past realities.
  • Learn methods used by management to increase the value of the company in the market place.
Last updated/reviewed: June 28, 2019

1 Review (3 ratings)Reviews

5
Member's Profile
Fascinating course! I really enjoyed learning the relationships among accounts and seeing how different companies showed different relationships among accounts. This class presents useful tools for analyzing financials in real life. I look forward to using the concepts.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  27:27Introduction to Financial Statement Aerobics – Toning Your Fiscal Physique Part 1 2 3 and 4
  29:10Lesson 2 - Tools and Techniques for Financial Statement Analysis
  19:36Lesson 3 - Utilizing and Interpreting Ratios
  5:31Lesson 4 - Introduction to Part 2 - Calculating and Understanding Ratios Ratio Analysis
  24:06Lesson 5 - List of Key Financial Statement Analysis Measurements - Part 1 - Liquidity
  22:33Lesson 6 - List of Key Financial Statement Analysis Measurements - Part 2
  17:16Lesson 7 - Ratio Evaluation Questions
  8:44Lesson 8 - Introduction to Part 3 - Utilizing Analytical Procedures to Detect Red Flags and Potential Fraud
  18:58Lesson 9 - Backlog Manufacturing Company Business Understanding and Impact Factors - Part 1
  18:28Lesson 10 - Backlog Manufacturing Company Business Understanding and Impact Factors - Part 2
  10:35Lesson 11 - Fraud Detection through Analytical Procedures
  8:09Lesson 12 - Fraud Case for U.S. Surgical Corporation
  17:36Lesson 13 - Introduction to Improving the Operations of the Company - Part 1
  25:01Lesson 14 - Improving the Operations of the Company - Part 2
  27:06Lesson 15 - Improving the Operations of the Company - Part 3 and Conclusion
CONTINUOUS PLAY
SUPPORTING MATERIALS
  PDFStudy Guide: Financial Statement Aerobics - Toning Your Fiscal Physique Parts 1 2 3 and 4
  PDFFinancial Statement Aerobics - Toning Your Fiscal Physique Parts 1 2 3 and 4 Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM