Understanding Financial Analysis

Companies require the capacity to interpret and evaluate financial data to make well-informed decisions and boost organisational performance in today's competitive business landscape. From numbers to insights, financial analysis can improve decision-making, unveil weak points in companies’ finances, determine a company's profitability and more. This finance course guides you through the fundamental aspects of financial analysis and equips you with the skills and confidence required to analyse financial data effectively. We explain how financial statement analysis draws on balance sheets, income statements and cash flow statements to evaluate a company’s performance and value.

The course first establishes the importance of financial analysis in business. We discuss the objectives of financial analysis, which include its role in guiding smart decision-making in terms of investment and business strategy. We then identify the three basic elements of financial analysis and the pieces of information that cannot be found in financial statements. The course examines the four standards for comparison in financial statement analysis and uses examples to show you how to perform financial statement analysis. We then explore important business topics like trend analysis, the four main categories of financial ratio analysis, gross margin ratio and more.

This business course delves into efficiency ratio analysis, return ratio, operational efficiency and DuPont analysis to help you make better investment decisions. This course has no prerequisites and is designed for anyone interested in the world of finance, particularly entrepreneurs and small business owners. We equip you with the skills required to analyse financial information effectively, evaluate the worth of a company and make sound investment decisions. Sign up to learn business science and unlock a world of financial insights and strategic advantages.