Introduction

This Financial Statement Analysis Fundamental training course is designed to explain how financial measures of corporate performance are calculated.
The Financial Statement Analysis Fundamental training course covers the basics of financial statement analysis and enables participants to confidently use financial ratios and financial terminology.
This is an introductory course designed for financial reports and accounts users with no prior or limited knowledge of corporate financial information.

Participants will also learn how to use:

• A company financial statement distills the relevant information

• How much cash the business generates.

• Analysis of Liquidity

• Analysis of Rentability

• Ratio Analysis of Capital

• Information about the basis of financial statements.

Objectives

• Develop a solid understanding of the basic principles of financial statement analysis.

• Enable participants to calculate and interpret key financial measures of corporate performance.

• Build confidence in using financial ratios and financial terminology effectively.

• Equip participants with the ability to analyze a company’s financial statements to assess performance and financial health.

• Understand how financial statements reflect cash generation, liquidity, and profitability.

• Strengthen skills in analyzing liquidity, profitability, and capital structure ratios.

• Provide practical knowledge of the four main financial statements and their interrelationships.

• Develop the ability to perform trend analysis and common-size financial statement analysis.

• Enhance understanding of IFRS and GAAP frameworks and their impact on financial reporting.

• Enable participants to analyze real company financial statements (e.g., Amazon and Disney).

• Build competency in evaluating cash flows, earnings, and shareholder equity.

• Introduce the full accounting cycle and its role in preparing accurate financial statements.

• Improve decision-making skills through interpretation of financial data and ratios.

Target Audience

This is an essential course for:

• Junior professionals in the financial sector

• Junior and Senior profiles in the non-financial sectors

• Investor Relations Managers

• Lawyers and Consultants interested in an in-depth session on Financial Statements

Training Outlines

Day 1

Introduction

• The Four Financial Statements 

• The Balance Sheet 

• The Income Statement 

• Statement of Stockholders’ Equity 

• Statement of Cash Flows 

• Generally Accepted Accounting Principles (GAAP) 

• International Financial Reporting Standards (IFRS)

• Ratio Analysis 

• Trend Analysis

• Common-Size Statements 

Day 2                                    

Balance Sheet 

• Understanding the Walt Disney Company’s Balance Sheet 

• International Financial Reporting Standards (IFRS) 

• Debt Versus Equity 

• Analyzing the Balance Sheet 

• Income Statement 

• Understanding Amazon.com’s Income Statement 

• Step One: Revenues – Cost of Sales = Gross Profit

• Step Two: Gross Profit – Operating Expenses = Operating Income 

• Step Three: Operating Income +/- Nonoperating Revenues and Expenses = Income Before Income Tax 

• Step Four: Income Before Income Tax – Provision for Income Tax = Income from Continuing Operations 

• Step Five: Income from Continuing Operations +/- Nonrecurring Items = Net Income  Analyzing the Income Statement 

Day 3 

Statement of Stockholders’ Equity 

• Stockholders’ Equity on the Balance Sheet 

• Statement of Stockholders’ Equity 

• Treasury Stock 

• Retained Earnings 

• Other Comprehensive Income 

• Stock Splits & Stock Dividends 

• Return on Equity 

• Financial Leverage Ratio 

• Times Interest Earned Ratio 

• Earnings Per Share 

• Dividend Rate 

• Price-Earnings Ratio 

Day 4 

Statement of Cash Flows

• Three Categories of Cash Flows 

• International Financial Reporting Standards (IFRS) 

• Analyzing the Statement of Cash Flows 

• Specific Accounts 

• Cash and Cash Equivalents 

• Investments 

• Accounts Receivable 

• Inventory 

• Property, Plant, and Equipment 

• Current and Long-Term Liabilities 

Day 5 

The Accounting Cycle 

• The 10-Step Accounting Cycle 

• Analyze Transactions Using the Accounting Equation 

• Prepare Journal Entries Using Debits and Credits 

• Step 1: Analyze and Prepare Transaction Journal Entries (TJEs) 

• Step 2: Post TJEs to the Ledger 

• Step 3: Prepare the Unadjusted Trial Balance 

• Step 5: Post AJEs to the Ledger 

• Step 6: Prepare the Adjusted Trial Balance 

• Step 7: Prepare the Financial Statements 

• Step 8: Prepare Closing Journal Entries (CJEs) 

• Step 9: Post CJEs to the Ledger 

• Step 10: Prepare the Post-Closing Trial Balance 

• Transaction Journal Entries of a Merchandise Retailer

• More Adjusting journal entries