Financial Statements & Analysis is a structured track of 8 lessons that build a complete, interview-ready understanding of the topic. Work through them in order, then use the quiz and flashcards in each lesson to revise.
What this course covers
- How to Read an Income Statement (P&L) - The Income Statement (also called P&L - Profit & Loss Account) reports a company's financial performance over a period (quarter or year).
- How to Read a Balance Sheet - Accounting Equation: Total Assets = Total Liabilities + Shareholders' Equity The Balance Sheet is a snapshot of a company's financial position at a point in time.
- The Cash Flow Statement Explained - The Cash Flow Statement (CFS) reconciles accounting profit (accrual-based) with actual cash movements.
- Financial Ratio Analysis: Key Ratios Explained - Financial ratios compress financial statement data into meaningful metrics for comparison across companies, sectors, and time periods.
- DuPont Analysis: Breaking Down ROE - DuPont Analysis decomposes Return on Equity (ROE) into its drivers, revealing the source of a company's profitability: Is it high margins?
- Common-Size & Trend Analysis Explained - Analysis Type Method Purpose Example Vertical (Common Size) - P&L; Express each line as % of Revenue Compare margins across companies regardless of size TCS EBITDA margin
- Red Flags in Financial Statements to Watch For - Detecting accounting irregularities and financial stress signals is a critical skill for equity researchers, credit analysts, and risk managers.
- Three-Statement Modelling: How the Statements Link - The Most Asked IB Technical Question INTERVIEW STRESS TEST: This section covers the single most frequently asked technical question in IB, PE, and corporate finance inter