The Art of Reading Financial Statements – Practitioner Level

Learn from a real value investor & independent board director, MBA, INSEAD IDP with PE & VC experience

Created by: Candi Carrera
Value Investor, Board Director, MBA, IDP-C, VingeGPT.com

What Will I Learn?

• Establish information source & download the latest financial report & identify accounting standard used IFRS, US GAAP or Local GAAP
• Understand & identify main corporate governance elements : Determine corporate governance 1- or 2-tier model and external regulation
• Understand role of statutory auditor, if audited identify statutory auditor, tenure of statutory auditor and audit opinion
• Understand the scope of consolidation (& unconsolidation) of the company
• Be able to do a vertical analysis of the balance sheet and understanding material assets & liabilities in balance sheet
• Identify sources of capital including long-term debt, related schedule, cost to service long-term debt including interest coverage ratio, equity capital source
• Deepen understanding of value creation for shareholders by understanding ROIC & WACC
• Understand profitability of company by analysing revenue segments & cash generating assets, understand operating cash flow & working capital vs other cash flows
• Be able to read earnings information including EPS, NOPAT, EBITDA, EBIT & net income

Requirements

• Being interested in companies
• Have a minimal knowledge how companies & business in general works
• Wanting to learn how to read financial statements

Target audience

• Students in accounting & corporate finance
• Value investors
• People interested in corporate finance & financial statements
• Financial analysts
• Business appraisers
• Accountants
• Corporate Officers
• Anybody interested in analysing and investing into companies