Corporate Finance 101: Financial Statement Analysis & Ratios

A zoom-in, zoom-out, connect-the-dots guide to understanding financial statements, and analysing companies

Created by: Loony Corn
An ex-Google, Stanford and Flipkart team

What Will I Learn?

• Interpret financial statements - the Balance Sheet, Income Statement and Statement of Cash Flows
• Parse SEC filings such as the 10K and 10Q to understand the business model of any company entirely from its investor filings
• Calculate ratios in all major categories: liquidity, leverage, turnover, profitability and valuation
• Apply Dupont's Identity to see whether a company's stock returns are driven by operational efficiency, asset efficiency or leverage
• Calculate the sustainable rate of growth at which a company can grow without external financing

Requirements

• This course assumes no prior knowledge of accounting or finance
• The investor relations sections of Facebook, Twitter and LinkedIn will be used, but the course will discuss how to access and use these public sites

Target audience

• Yep! Business majors and aspiring MBAs
• Yep! CFA Level I candidates
• Yep! Entrepreneurs looking to understand basic corporate finance
• Nope! Accountants - you'll find this course too basic