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: August 18, 2023

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
10 Reviews (74 ratings)

Reviews

5
Anonymous Author
Great course that provided real life examples. Very thorough at explaining how to understand the financial statements and how different transactions affect the statements and certain metrics.

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
it was a really good course as instructor had everything laid out in detailed slides and was very well explanated with examples.

5
Member's Profile
very good clear objectives, good tips and advice, I enjoyed the course very much and will use it in a practical way

5
Anonymous Author
Great overview and in depth review of the financial statements. Really enjoyed the course.

5
Anonymous Author
Very thorough review of the 4 financial statements. Great materials for future reference.

5
Anonymous Author
Thorough analysis of financial statements and how they are interrelated.

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 .
Course Questions and Answers1 Question
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

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Reading and Analyzing Financial Statements-Balance Sheet13:20
  Income Statement9:36
  Statement of Cash Flows17:02
  Statement of Shareholders' Equity3:51
  Read and Analyze Home Depot's Financial Statements15:06
  Key Areas of Business Performance Revisited9:05
  Financial Ratios - Home Depot21:25
  Financial ratios - Home Depot vs Lowe's23:16
  ROE Analysis Model10:20
  Using the ROE Model to Analyze Home Depot vs Lowe'14:04
CONTINUOUS PLAY
  Reading and Analyzing Financial Statements2:17:06
SUPPORTING MATERIAL
  Slides: Reading and Analyzing Financial StatementsPDF
  Reading and Analyzing Financial Statements Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam