2 CPE In this course, we will learn how to use basic analysis tools (called ratios) to conduct a fundamental analysis of a company's financial statements. This analysis will provide insights into a company's performance and will help identify areas of concern.
We will introduce you to some of the more common financial ratios and their uses. We will also introduce you to the DuPont framework, which is one useful way to structure the analysis of financial ratios. Finally, we will explain the use of common-size financial statements, which are easy to prepare, easy to use, and should be the first step in any comprehensive financial statement analysis.
Keep in mind that this is merely an introduction to financial statement analysis — there are entire textbooks devoted to this topic. Our objective is simply to expose you to some of the basic tools to help you start to understand what financial statements can tell us about the operations of a business.
Learning Objectives
- Explore the purpose of financial statement analysis.
- Recognize how to use common-size financial statements to compare financial statements across years and between companies.
- Explore the DuPont framework and how return on equity can be broken out into profitability, efficiency, and leverage components.
- Explore how to use cash flow information to evaluate cash flow ratios.
Last updated/reviewed: March 18, 2024
141 Reviews (569 ratings)
Reviews
Daniel DiLeone
( at FlexGen)
Love the amount of the detail that the instructor went into as that was really helpful to my understanding!
Wendy Sanyk
( at USACE Seattle District)
I really enjoy Professor Stice's engaging and enthusiastic teaching style - he's extremely well-versed in financial statement ratios and the meaning behind the numbers, with great examples and subtle humor that made me laugh out loud. I felt thoroughly engaged - the slides are also well-designed and a great supplement and takeaway from the course. The DuPont example was especially effective throughout. Thank you Dr. Stice - top notch course.
Anonymous
()
This is the best lecture I have ever listened related to the financial statement analysis! The professor offers extremely detailed explanations to illustrate every commonly used ratio to help understand the financial statements in a comprehensive way! Thanks so much for this awesome lecture!
Kylie Coker
(Senior Technical Accountant at Novelis, Inc.)
This course is a DEEP dive into all the commonly used financial ratios as well as the DuPont framework and common-size financial statement comparison. The instructor is very knowledgeable and uses great real-life company examples to demonstrate the power and drawbacks of ratios.
Anonymous
(Bookkeeper)
This is one of the best courses I have taken on Ilumneo. Mr. Stice is engaging, funny and uses real-world examples. He keeps the material interesting and has great slides to enhance the material. I would recommend this course to anyone who wants to refresh on ratio analysis.
Jennifer Wergland Lyon
( at N/A)
This course was such a good overall look at interpreting financials using ratio analysis. I liked that the instructor also told you what typical ratios are for a company as well as how to further investigate the results. His delivery was very engaging also.
Anonymous
(Consultant)
It is a great course on analyzing financials and the ratios that are commonly used to evaluate liquidity, efficiency, leverage etc. The examination of relationships between the numbers on the financials statements is a must course for all accountants.
Ashlee Krupa
(Senior Accounting Business Partner Coord.. at RJ Corman)
Very helpful summary of many different metrics to evaluate the financial status of a company. As an analyst, this will be very helpful in practical application, and the background and reasoning behind each ratio was clear and insightful.
Anonymous
(Finance & Accounting Manager)
This was a very good course and covered in such a way that is useful for both people somewhat new to financial statement analysis yet still valuable to people with more experience. The professor was very enjoyable and informative!
Anonymous
(Inventory Accounting Manager)
The concept of analyzing financial statements has been daunting. Trying to remember what ratios to use and why this course makes it easy to understand what to use and why. It was both practical and informative.
Anonymous
(Risk manager)
Mr. Kay gave me a full picture of doing financial ratio analysis. He explained all kinds of financial ratios in different perspective,which helped me to enhance my comprehensive ability in work! Thanks for his great work!
Anonymous
(Associate Director)
The instructor does a great job of providing an overview of the different ratios that can be used to analyze financial statements. Definitely recommend if you are looking for a good overview of the different ratios.
Anonymous
()
Great refresher curse on financial ratios and analysis, or great course to begin learning these concepts. Very thorough materials and great instruction. Was not boring and I was easily able to remain engaged.
Anonymous
(Snr Accounting Consultant, CPA)
Professor Stice - I enjoyed this course. We know that financial statements tell a story of a company's business/operations. But is the analysis of those statements that further explain the story via ratios.
Anonymous
(Controller)
Excellent course. Professor Stice elicits passion and understanding of financial statement analysis. The course is very well organized, paced, and presented. I'm excited to participate in his other courses.
Anonymous
(Sr. Accountant)
This course was very intuitive and provided great insight into financial ratios. The instructor was thorough, energetic and presented the materials in an easy to comprehend fashion with numerous examples.
Anonymous
()
This is a very interesting course on financial statement analysis. It contains many useful information on financial performance measurement/management presented in a very clear and concise manner.
Anonymous
()
This course was very thorough in explaining a wide variety of financial analysis techniques with real-world examples. The instructor moves very quickly, but it is packed with useful information.
Anonymous
(Treasury Director)
Superb course! Easy to understand and very useful for any accountant wanting to understand more than just the numbers they are producing in financial statements. Kay is an excellent teacher!
Anonymous
(Director of FInance)
This course was a good overview of Financial Ratios and what to use to analyze financial statements. Some of this was a review but also had good information. The instructor was good overall.
Anonymous
(accountant)
Very well done. Explains things efficiently and thoroughly to make understanding very simple. I always try to seek out his videos because he explains everything and explains them clearly.
Rosie Herren
(Controller at Book and Street)
Instructor explained things in a way that was easy to understand and totally relateable to what I do in my job. Lots of good info without lots of unnecessary extraneous chit chat.
Anonymous
(Owner & CEO)
Kay focused on only the most common ratios and analyses that are relevant to companies in all industries. The course was very informative and the instructor was very knowledgeable.
Anonymous
(Accountant)
Very informative course on the Financial ratios. Which are widely used in the accounting job which i currently hold and very easy to follow with the professor teaching the course.
Devery Adair
(CFO at PLI Industries LLC)
Excellent coverage of this topic. The examples and illustrations complemented the lecture well. Easy to follow and understand. Would like to see more courses from this lecturer.
Anonymous
(Senior Accountant)
Great course, overview, and reinforcement of Financial Analysis ratio and approaches for interpreting financial statements relevant to Accounting or other Users of statements
Tai Whaley
( at Infrastructure Engineers)
The presenter was well spoken, he presented the information quickly but with the right type of comparisons and examples. One of the best presentations I've viewed recently.
Carol Chen
(Consultant at cchenqbooks)
Enjoyed the presentation. While I’ve used these ratios, this class will help me organize my thoughts so I can clearly communicate issues with other managers. Thank you.
Anonymous
(Controller)
Kay does a great job and presenting the financial ratios. I use some similar calculations for my balance sheet budget to assist in determining if the budget makes sense.
Kelsey Kozachuk
(Sr. Controller at Browne Consulting Group)
The instructor is easy to follow and very knowledgeable. I have enrolled in her courses before. The content was informational and applicable. Very useful in the industry.
Katherine Woodruff
( at Woodruff Consulting)
instructor was clearly very knowledgeable, spoke quickly and used examples of how you would apply to real life situations-- a lot of material but all very useful.
ERICA CARPER
(Controller at MWP)
Great use of time and his notes helped alot. Just being immersed in it for that time helped to solidify concepts not used that much and reinforce those we do.
Anonymous
()
Solid course with solid straight forward information. Appreciate the instructor getting down to the brass tax and not getting too caught up in the weeds.
Shelby Raye
( at Nutrislice, Inc)
This course is very helpful as on overview to the important analysis that needs to be done each month once the numbers are finalized from month-end close.
Neal Stiles
(Accounting & Finance Guy at Contractor)
A solid presentation with real examples which enhances the learning experience. Kay also speaks with enthusiasm which adds more flavor to the content.
Anonymous
()
Great summary of the common ratios used to measure financial performance, I appreciated the refresher and theeasy-to-follow definitions and explanations.
Derek Ettinger
( at GP Fund Solutions, LLC)
Very good course on the basics of financial analysis. Appropriate for individuals who are new to this practice area or those looking for a refresher.
Anthony Baca
(Manager at RSM)
The instructor made a dry subject interesting and informative.
Suggest adding sample review questions after each major topic to reinforce learning.
Anonymous
(Controller)
Great course. THe instructor very clearly lays out learning objectives and delivers on teaching those. Great for any accountant to refresh on this
Anonymous
()
Financial statement analysis is an incredibly useful technique that I use in my day to day. This was helpful for refreshing on some of the basics.
Brian McClain
( at 7038995309)
This was a very insightful course. Showing the common sized financial analysis and touching on the dupont method were both items I did not know.
Anonymous
(Accountant)
Energetic presenter that clearly explained how to use financial ratios in different scenarios. Loved this course! I will use some of his tips.
Christopher Hole
(Director of Internal Audit at Roseburg Forest Products)
Agree with many of the other reviews. The presenters enthusiasm and real world examples make it far easier to really engage with the material.
Tim Marsden
(International Finance Manager at The Church of Jesus Christ of Latter-day..)
Great presentation and presenter. He is very knowledgeable and presents the concepts with clarity. Examples are meaningful and interesting.
Anonymous
()
I thought the course was a good, quick overview of financial statement analysis. Potential Pitfalls section at the end was a good conclusion.
Lawrence Hirsch
(Controller at Builders design)
Mr.Stice has an energized and passionate presentation style that held my attention. Learned new material beyond the usual ratios. Thanks.
Anonymous
(Mgr, Accounting/Reporting, Internal Repo..)
Ratios were well defined & thoroughly explained. Might have been nice to have some exercises in calculating them included in the training.
Bob Phipps
( at R.W. Phipps, PA)
Great job reminding us that the financials are only the first step...i don't use ratios as i should. printed out the slides to remind me.
Eric Ostertag
( at La Tortilleria)
Excellent course on analyzing financial statements, especially for someone relatively unfamiliar with it. It was a great introduction!
Andrew Fischer
(Accountant at Noble)
This is a clear and concise course giving an introduction to the uses and calculations of financial statements using ratio analysis.
Inna Shmukler
(Controller at Fornetix LLC)
I really like the dynamics of this presentation. Even though it is a long course, it was very engaging. Lots of useful information.
Anonymous
()
Great course and presentation! Instructor does an excellent job at explaining ratios and analysis so that it is easily followed.
Anonymous
(Accounting Manager)
This was a great high level overview of types of ratios to use when trying to determine leverage, efficiency, etc. Great course!
Anonymous
(Director)
This is a good review of ratio analysis and how to analyze financial statements to determine the areas of concern or difference.
Andrew Vriesman
( at Self-employed)
Great instructor! Very knowledgeable and did more than just talk about how to calculate the ratios. He also focused on the "why"
Michael Zomber
( at MOCFS)
This is a great course. The professor used real world examples to bring clarity to the concepts. I highly recommend the course.
Anonymous
(Reinsurance Accounting Manager)
Great course which provides useful information about basic metrics that help in the process of analyzing financial statements.
Anonymous
(Sr. Accountant)
The instructor looks at the same information from different perspectives. He is engaging and has fun presenting the material.
Maxwell Hassenstein
( at NeoGenomics)
The course provides great case examples of principle financial statements analysis and the purpose for the various ratios.
Timothy Goodrich
(Vice President at BentallGreenOak)
This was an informative and concise course that gave good background on how to analyze and compare financial statements.
Anonymous
(Corporate Controller)
This was a good review of financial Ratios needed to review Financials statements. Good course to take as a refresher.
Maddison Lopez
(Finance Manager at KB Home)
I enjoyed this refresher of financial ratios. He does a very good job of explaining the ratios and their application.
Maxwell Mattord
( at Grapeman Farms)
Useful and straightforward. I appreciate the use of time and that the course sticks to the essential information.
Matt Parker
( at WCF Insurance)
This is a really helpful review of ratios and analysis. Highly recommended if you haven't reviewed ratios recently.
Anonymous
(CPA / Owner)
Very knowledgeable instructor with presentation that covers a significant amount of material in the time allowed.
Anonymous
(Owner)
Refreshing and practical review of key ratios and analytic tools for better understanding a company's performance
Anonymous
()
Very informative and engaging discussion! I will be taking this back and applying to future analysis. Thank you!
Anonymous
(Senior Accountant)
This was an excellent refresher, with easy to follow examples for all the basic ratios used and then some
Russell Forrest
(Controller at Premium Minnesota Pork)
I loved how the instructor used a device to draw on the screen and gave full explanations of everything.
Anonymous
(DIRECTOR)
the course is designed in such a way that it would give a better conceptual clarity about the topics.
Anonymous
(Senior Accountant)
The instructor is passionate about the subject and effectively communicated the concepts presented.
Anonymous
(-)
This is a helpful course with good content. Thanks for the compiling so much on ratio analysis.
Anonymous
(Accountant II)
Very helpful look into reviewing and analyzing financial statements and not just preparing them.
Anonymous
(CPA)
Excellent presentation of financial ratios and how to analyze a company's financial statements.
Anonymous
(AR specialist)
very thorough. well presented. The material was presented in a way that way easy to understand
Anonymous
(Corporate Accountant)
Analyzing Financial Statements is a great course. I learn a lot from this course. Well done!
Mahira Sheikh
(Accounting Manager at DLC Group)
A quick recap on the main ratio's and what they tell about the company. A refreshing course
Anonymous
(SVP Corp Compliance & Accounting)
THis is a great overview/refresher providing useful tools to analyze and compare financials
Anonymous
(VP of Finance and Accounting)
Really good course on financial ratios and how to use them to analyze financial statements.
Anonymous
(Financial Reporting)
Kay did a great job with this presentation and laid out very useful information. Thank you!
Eric Bade
( at Star Group)
I do some review of our peer's financial statements and it's nice to have a concise review.
Jack Brown
(Consultant at JB Consulting LLC)
Good course. Material connected to test. Informative, well presented. Meets stated goals.
Chris Fameree
( at Diligence Solutions Group, LLC)
Really common sense analysis. I really enjoyed the course and the instructor is great.
Anonymous
()
good review of financial statement ratio topics and methods. my thanks to the presenter.
Anonymous
(Director)
Useful topic and good coverage of information on financial statement analysis and ratios.
Michael Fairchild
(Retired at Retired)
insightful as to when , why and how the analysis tools are used - excellent presenter !
Anonymous
()
Thank you Kay for your patience and your great sense of humor … i enjoyed the course
Anonymous
()
I really like the one the instructor presents the information. Very useful information
Anonymous
(Director - A/P)
I think this course if beneficial for anyone who is in the finance area of a company
Anonymous
(CFO)
I enjoyed Analyzing Financial Statements
(263)
4.6654
486 Enrolled2 Hours (On-Dem
Anonymous
(Finance Assistant)
Good learning. Great opportunity. Recommending others.
Deeply educated to students
Julia Kramer
(Financial Behavior and Leadership Consul.. at Signature Financial Planning)
Professor Stice is engaging, energetic and made these two hours fun and informative
Bilechi Sumaili
(Corporate Accountant at GTUIT, LLC)
This is one of the best courses I have taken. Thanks Mr. Stice, I appreicate you.
Syed Kazmi
(Controller at Encompass Capital Advisors LLC)
Ratios are important indication of a business performance which is explained well.
Lauren Reid
(Senior Accounting Manager at People.ai)
best instructor - enjoyed energy and clarity. apprecite examples and explanations
Parker Forge
(Financial Analyst at Stryker)
This course was a great refresher on common ways to analyze financial statements.
Anonymous
(Finance Manager)
On of the best course in Financial Statement Analysis. Learnt many new things.
Anonymous
(Associate)
Nice course. Presentation was clear and source materials were laid out well.
Anonymous
(Director Finance)
Instructor was easy to listen to and effective. Slides were easy to follow.
Sean Flynn
(Accounting Manager at Rosemawr Management)
good course on financial statement analysis and will help most practitioners
Anonymous
(Financial Reporting Manager)
Very informative overview of various financial ratios. Effective instructor.
Seth Kaye
( at CGA Holdings, Inc.)
Instructor is effective at delivering the concepts and is also entertaining
Anonymous
(Senior Accountant)
Really good refresher of several of the more common ratios and their usage.
Anonymous
(Accountant)
Clear concise and made accounting interesting. Really enjoyed this lecture.
Anonymous
(Director of strategy)
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Steven Stanforth
( at Waibel Energy Systems, Inc.)
Good course but an awful lot of emphasis on DuPont ratios and computations
Baris Arslan
(Internal Audit Director at Freelance)
Excellent Presentation! Thank you very much.
This will help me a lot.
Kirit Kapadia
( at Kirit KapadiaCPA)
Very informative course explaining role of ratios and financial analysis
Anonymous
(Controller)
A easy to follow explanation of ratios and analysis! Excellent speaker!
Roxane Wells
(Senior Manager at Stevenson Smith CPA's LLC)
Good instructor. Good review of ratio analysis and financial statements.
Anonymous
()
Well presented and well explained. And he made it interesting as well!
Anonymous
()
Great course, learned a lot. Nice presentation, useful content. Thanks
Anonymous
(Senior Accountant)
I would recommend this course to any CPA working on their CPE credits.
Christopher DiVincenzo
( at Seattle Fish Company, LLC)
Good information covered in the course around financial statements.
Anonymous
(CPA/Investment Advisor)
Great course, good review of the basics, good powerpoint materials
Kimberly Smith
(A/R Lead, Automotive at Novelis)
Loved the Professor... he is clearly passionate about the subject!
Chantell Haines
( at Accountants with Purpose)
Excellent reminder of all the ratios and how they should be used.
David Lopez-Monroy
(Self at Self)
Excellent presenter. Demonstrates the power of ratio analysis.
Russell Burr
(FA at AAA of Western and Central NY)
I think this course was great and would recommend it to anyone.
Arleen Kearns
( at Charles Schwab)
Easy to follow, materials are basic and easy to understand.
Anonymous
(Tax Analyst)
Great lecture by the professor, very insightful and engaging.
Prashant Shah
(Manager-FP&A at jda)
This course is very good for understanding Financial Ratios.
David Ord
(VP of Finance at JMI Property Services)
Very helpful presentation of financial statement analysis.
Anonymous
()
great class. I have enjoyed all of your accounting classes.
Zarksis Italia
(Director Finance at Ensco)
Excellent course for ratio analysis, very well presented
Anonymous
()
very nice course nice nice nice nice nice nice nice nice
Anonymous
(accountant)
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Anonymous
(Client Service Executive)
The speaker gave an informative review about the course.
Brittani Hetyei
(Controller at Browne Consulting Group)
a great introduction to analyzing financial statements
Eileen Perrin
(Financial Advisor at First Command)
Love the professors presentation style Good content.
Anonymous
()
Course was well developed, structured, and presented.
Azzedine Finley
( at Bellco Capital)
The course was great. Would definitely recommend it!
Anonymous
(Finance and IT Consultant)
GREAT COURSE, PACKED WITH INFORMATION AND EXAMPLES
Sharon McCauley
(President at Barons', Inc.)
excellent presentation of an otherwise dry course
Anonymous
(CFO)
Excellent course and very effective presentation
Bennett Harris, CPA
(Sr. Decision Support analyst at Dignity Health)
Very good explanations. He kept it interesting.
Kevin Murray
(Business Partner - Strategic Projects at The Wesson Group)
Good basic course on financial statements.
Craig Scanlon
(Owner at BST)
Good overview of common financial ratios
Anonymous
(None)
Nicely done, concise but thorough.
Anonymous
()
nice review course.
Melvin Balberan
(Senior GL Accountant at Netsuite Philippines Inc.)
Very good course
Prerequisites
Course Complexity: Foundational
No Advanced Preparation or Prerequisites are needed 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
.
Kay SticeProfessor of Accounting
About Illumeo
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Contact Us
- Email: info@illumeo.com
- Phone: 408-400-3993
- Adress: 1608 W Campbell
- Av #221, Campbell, CA 95008
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