Financial statements provide information to its stakeholders on the underlying economic activity in the form of accounting numbers. We use the financial statements analysis to understand the business, assess its performance and financial future and make investment decisions. Financial statement analysis skills are required for equity and credit analysts, executives, bankers, auditors, consultants and other users of financial information.

The main objective of this course is to equip you with the basic knowledge to:

  • a)    read, interpret and analyze financial statements to make informed business decisions regarding investment, credit, or resource allocation;
  • b)    compare financial statements;
  • c)     analyze the quality of financial statements;
  • d)    understand and present to stakeholders the firm’s financial results.

The course addresses questions such as (1) The role of financial statements in determining firms’ values (2) How to pull apart the financial statements to get at the relevant information (3) How ratio analysis aids in valuation (4) The relevance of cash flow and accrual accounting information (5) How operating and financial decisions contribute to a firm’s return (6) how can we spot distorted accounting numbers (7) how can we use accounting numbers to forecast financial future of a firm