Analyzing Financial Statements for Non-financial Professionals

Overview/Description
Financial statements of an organization often conceal more than they reveal. Being able to analyze them and extract meaningful information is an essential skill that financial as well as non-financial professionals should have. Ratio analysis can be used to determine relationships between two elements of the same financial statement or between one element of one financial statement and another element of a different financial statement. This type of analysis can also be used to compare your company’s performance to a number or key indicators, including your competitors, industry averages and benchmarks. This course presents and discusses many methods for analyzing financial statements from a non-financial professional's perspective. It determines and interprets the key profitability, efficiency, liquidity, and solvency ratios using scenarios. It also explains horizontal and vertical analysis of the financial statements using real life examples.

Target Audience
Individuals who want to gain understanding or refresh their knowledge of financial statements analysis techniques

Expected Duration (hours)
1.0

Lesson Objectives

Analyzing Financial Statements for Non-financial Professionals

determine the value of a company's key profitability and efficiency ratios in a scenario

calculate liquidity and solvency ratios

classify examples as reflecting the use of horizontal or vertical analysis