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LinkedIn Learning

Corporate Financial Statement Analysis

via LinkedIn Learning

Overview

Learn the ins and outs of financial statement analysis—the examination of relationships among financial statement numbers—to gain insights into your company's past and future.

Syllabus

Introduction
  • What is financial statement analysis?
  • Common methods of analysis
1. A Review of the Financial Statements
  • The accounting equation
  • Reading the balance sheet
  • Reading the income statement
  • Evaluating the statement of cash flows
2. The DuPont Framework
  • Determining return on equity
  • Applying the DuPont framework
  • Example: Ford vs. General Motors
3. Common-Size Financial Statements
  • Common-size overview
  • Common-size income statement
  • Common-size balance sheet
  • Example: Walmart vs. Target
4. Profitability Ratios
  • The many ways to define income and profit
  • Example: Nordstrom vs. Microsoft
5. Efficiency Ratios
  • The operating cycle
  • Days' sales of inventory (DSI)
  • Average collection period
  • Examples: Harley and McDonald's
6. Leverage Ratios
  • Current ratio in theory and practice
  • The many debt ratios
  • Example: Comparing tech company debt ratios
7. Limitations of Financial Statement Analysis
  • Limits to using past performance
  • Pitfalls of financial statement analysis
  • Avoid the temptation of a single reason
Conclusion
  • What's next?

Taught by

Jim Stice and Kay Stice

Reviews

4.8 rating at LinkedIn Learning based on 8309 ratings

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