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This course provides a thorough coverage of how to read and analyze financial statements as well as how the analysis can be organized to identify and assess a company's value drivers.

Learning Objectives

  • Explain what a balance sheet measures and describe the basic balance sheet classifications and accounts.
  • Explain what an income statement measures and describe the basic classifications and line items.
  • Explain what the statement of cash flows measures and describe the three basic classifications, especially the operating section prepared under the indirect method.
  • Explain what the statement of shareholders’ equity measures and describe the different accounts that appear on it.
  • Assess Home Depot’s financial condition and performance by reviewing its financial statements.
  • Describe the key areas of business performance and link them to the measures provided by the financial statements.
  • List, compute and interpret a set of ratios that link to the key areas of business performance.
  • Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s using a set of financial ratios.
  • Explain how return on equity can be broken down into its determinants and link this model to the measures of the key areas of business performance.
  • Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s using the ROE model.
Last updated/reviewed: May 10, 2022

Included In Certifications

This course is included in the following Certification Programs:

9 CoursesFinancial Reporting and Analysis Certification

  1. Introduction to the Financial Statements and the Environment of Financial Reporting
  2. Preparing Financial Statements
  3. Reading and Analyzing Financial Statements
  4. Time Value of Money - Concepts and Applications
  5. Classification, Debt and Equity
  6. Current Assets and Asset Valuation
  7. Equity Investments and Long-lived Assets
  8. Earnings Management
  9. Ethics and Earnings Management

4 Reviews (14 ratings)Reviews

4
Anonymous Author
Great class!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
5
Anonymous Author
Good refresher on financial statement analysis. I enjoyed the comparatives between two industry leaders - Lowe's and Home Depot.
5
Anonymous Author
Well presented, easy to follow, not dull. Informative and relevant.
4
Anonymous Author
Very detailed slides to review with real life examples.

Prerequisites

Course Complexity: Foundational

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 .

1 QuestionCourse Questions and Answers

User picture

Hello, I do appreciate the depth of coverage of this course given that it's a 3 CPE credit course. However, the 900+ slides provided are way too long and honestly lack any substance or methodical relevance that can be used later as a guidance. Would like to see better slides/handouts and more final questions when your handouts can be used as a reference point as many other presenters do. The course should be easy to follow. Idea of being part of the CPE program is not to go through 900+ list of slides (unless its a 20+ course credit), but rather to refresh knowledge or learn something new while maintaining the CPE license. Thank you

Course Syllabus
INTRODUCTION AND OVERVIEW
  13:20Reading and Analyzing Financial Statements-Balance Sheet
  9:36Income Statement
  17:02Statement of Cash Flows
  3:51Statement of Shareholders' Equity
  15:06Read and Analyze Home Depot's Financial Statements
  9:05Key Areas of Business Performance Revisited
  21:25Financial Ratios - Home Depot
  23:16Financial ratios - Home Depot vs Lowe's
  10:20ROE Analysis Model
  14:04Using the ROE Model to Analyze Home Depot vs Lowe'
CONTINUOUS PLAY
  2:17:06Reading and Analyzing Financial Statements
SUPPORTING MATERIAL
  PDFSlides: Reading and Analyzing Financial Statements
  PDFReading and Analyzing Financial Statements Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM