Instructor for this course
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How to read an annual report? It sounds like a daunting task for many, especially if you have little or no experience with financial vocabulary and financial analysis. This course encourages you to pick up an annual report, of the company you work for, a company you have invested in, or any other company that you would like to learn more about. We go through an approach to reading the annual report, how to balance your focus between the numbers and the narrative, what each of the financial statements (income statement, balance sheet, and cash flow statement) is telling you, what the key financial acronyms mean and why they are important, how to analyze the information in the annual report, and how to dig in deeper and deeper to uncover what you are looking for in the annual report.

 

This course provides you with the concepts and context to get started on your journey of reading and understanding an annual report, and shows you in detail (through an insightful case study of the financial statements of Alphabet Inc (Google's parent company)) what the key financial terms mean and how to analyze them.

 

Upon finishing this foundational course on how to read an annual report, you can expand your financial analysis skills by taking the related comprehensive courses by the same instructor: “Preparing and Understanding a Cash Flow Statement” and “Balance Sheet Tour”.

 

Learning Objectives

  • Explore the content of the annual report
  • Identify the purpose of the income statement, the cash flow statement, and the balance sheet, the key terms used in these financial statements, and the main equations in each
  • Discover how reading the Management’s Discussion and Analysis (MD&A) can help you understand the key operational drivers of a company’s performance
  • Discover how the sections that most people skip when reading an annual report can actually provide you with a better understanding of how the company operates
  • Recognize how reading and understanding an annual report is a mix between the numbers and the narrative
Last updated/reviewed: May 22, 2018

Prerequisites

Course Complexity: Foundational

No advance preparation or prerequisites are required for this course. Expand your financial analysis skills by taking the related comprehensive courses “Preparing and Understanding a Cash Flow Statement” and “Balance Sheet Tour”.

 

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
  8:26Introduction - How to Read an Annual Report
  2:07Relationship Between Financial Statements
  7:35Gross Margin and Operating Margin Explained
  12:06Income Statement Analysis Walmart
  12:33Income Statement Analysis Alphabet Inc
  10:37Cash Flow Statement Analysis Alphabet Inc
  11:05Balance Sheet Analysis Alphabet Inc
  8:0510-K Table of Contents
  6:57Annual Report MD&A
  6:03Auditor Report in the Annual Report
  2:05Conclusion
CONTINUOUS PLAY
  1:27:40How to Read an Annual Report – For Beginners (Case Study)
SUPPORTING MATERIALS
  PDFSlides: How to Read an Annual Report
  PDFHow to Read an Annual Report Glossary/Index
  PDF3M 10-K 2017
  PDFAlphabet Inc 10-K 2017
  PDFWalmart Annual Report
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM