How to Read Financial Statements
Learn how to read financial statements. In this 2-part free course, we use a company’s financial statements and annual report to understand the financial strength of a company and help us make informed decisions.
Learn how to Read Financial Statements with free online course from the Corporate Finance Institute (CFI). Earn a free verified certificate.
Course description – How to Read Financial Statements
In the first module, you will learn how to read the balance sheet and its related notes using a company case study, Espresso Software. This will help us understand the financial strength of the company and help us make informed decisions. By the end of this module, you will have a solid understanding of the specific accounts in a typical balance sheet and the related notes to the financial statements.
- Navigate successfully through the notes to the financial statements.
- Read and interpret the various items in a published balance sheet.
- Understand complex balance sheet concepts (e.g. deferred taxes, goodwill, investments, etc.)
In the second module of the free course, we continue reading Espresso Software’s financial statements. We look at the company’s income statement and statement of cash flows and conclude by covering the key contents of an annual report. By the end of this module, you will have a solid understanding of a typical income statement, statement of cash flows and annual report.
- Understand the different ways to present an income statement and cash flow statement.
- Read and interpret the various items in a published income statement.
- Identify the operating, financing, and investing activities of a company.
- Determine what is contained in an annual report and where to find it.
- Understanding the Balance Sheet
- Understanding the Income Statement and Cash Flow Statement
- Qualified Assessment