An understanding of financial information and how to interpret it is
important, because management and other stakeholders use it to evaluate the
performance of projects, both in their own organization and other
This course introduces fundamental financial concepts, terms, and techniques
that will help you analyze a company's financial performance.
You will examine the components of the three key financial statements: the
balance sheet, income statement, and cash flow statement. These three
generally accepted accounting statements, used by most businesses for
financial reporting, are prepared from the same accounting data, but each
statement serves its own purpose.
You will also analyze the financial performance of a company through the
application of financial ratios that provide insight into a company’s
liquidity, debt, profitability, and efficiency.
The last tool you will be introduced to is comparative financial statements.
Comparative financial statements enable you to compare financial performance
After completing this course, you should be able to:
Explain the general format, content, and use of the balance sheet, income statement, and the cash flow statement.
Analyze financial performance using ratios of liquidity, leverage, profitability, and efficiency.
Analyze comparative financial statements to assess more than one organization or scenario.