The Financial Statements & Financial Analysis course provides learners with a practical introduction to understanding and interpreting financial reports used to manage and evaluate organizations. The course covers the purpose and structure of the income statement, balance sheet, statement of changes in shareholders’ equity, and statement of cash flows. Learners also explore financial ratio analysis to assess performance, liquidity, and financial health, building essential skills for informed business and managerial decision‑making.
Module 1: Understanding Financial Reports
Introduces the purpose and structure of organizational financial reports. Learners explore the key financial documents included in a financial report and how these statements support business decision‑making.
Module 2: The Income Statement
Focuses on the income statement, including revenue, expenses, and profitability. Learners analyze how business activities affect income and interpret operating performance.
Module 3: The Balance Sheet & Shareholders’ Equity
Explores the balance sheet and statement of changes in shareholders’ equity. Learners examine assets, liabilities, equity components, and how financial position is represented at a specific point in time.
Module 4: The Statement of Cash Flows
Covers cash flow reporting and analysis. Learners identify operating, investing, and financing activities and explain how specific business transactions impact cash flow.
Module 5: Financial Ratio Analysis
Introduces financial ratio analysis, including its purpose, objectives, and limitations. Learners identify types of ratios (liquidity, profitability, efficiency, leverage) and perform calculations to evaluate financial performance
Upon successful completion of this course, the learner will be able to:
Identify and describe the key documents included in an organization’s financial report
Interpret the income statement, balance sheet, statement of changes in shareholders’ equity, and statement of cash flows
Explain how specific business activities affect cash flow
Define financial (ratio) analysis and explain its objectives and limitations
Identify major categories of financial ratios
Calculate and interpret financial ratios to evaluate organizational performance
Certificate of completion
This class is an independent-study course. Students will have all the resources needed to successfully complete the course within the online material. A student helpdesk is available for technical support during the course enrollment.