Understanding Financial Statements: Stocks & Shares Analysis

Financial Statements as Most Important Aspect of Fundamental Analysis. Conceptual course for people across the Globe.

If you are looking at investing in Stocks or Shares for a long term, then it is essential for you to conduct a Fundamental Analysis of the Stocks you intend to invest in. Fundamental analysis involves Industry Analysis, Company Analysis and Analysis of the Financial Statements. While Industry and Company Analysis are subjective and based on general reading material and business news, Analysis of Financial Statements is an Objective thing based on Facts and Figures ultimately culminating in Ratio Analysis based on which you make long term decisions.

What you’ll learn

  • How to read, understand and Analyse Financial Statements?.
  • What to look for in Financial Statements and what to make out of it?.
  • How to identify value stocks for long term investment by analyzing the Financial Statements?.
  • How to evaluate the worth of a business or an investment in shares?.
  • The concept of Assets Liabilities and their balance.
  • Significance of Retained Earnings, Reserves and Surplus.
  • Significance of Debt Equity Ratio.
  • Working Capital and its Significance.
  • How to look at and what to look for in a Balance Sheet.
  • The Golden Rule of a Good Balance Sheet.
  • How to read and analyse a Balance Sheet.
  • How to read and analyse a Profit and Loss Statement.
  • Significance of Top Line and Bottom Line and the associated psychological aspect.
  • What is Cash Flow.
  • Significance of Cash Flow statement.
  • How to read and analyse a Cash Flow statement.
  • Significance of Ratio Analysis.
  • Understanding Face Value of a Share.
  • Understanding Book Value of a Share.
  • Understanding Market Price of a Share.
  • Understanding EPS.
  • Understanding PE Ratio.
  • Analysis of Debt Equity Ratio.
  • Understanding ROE.
  • Understanding PB ratio.

Course Content

  • Understanding the Balance Sheet –> 17 lectures • 2hr 17min.
  • Understanding the Profit and Loss Statement –> 5 lectures • 32min.
  • Understanding the Cash Flow Statement –> 8 lectures • 50min.
  • Ratio Analysis –> 12 lectures • 1hr 25min.

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Requirements

  • There are no prerequisites as we discuss from basics..

If you are looking at investing in Stocks or Shares for a long term, then it is essential for you to conduct a Fundamental Analysis of the Stocks you intend to invest in. Fundamental analysis involves Industry Analysis, Company Analysis and Analysis of the Financial Statements. While Industry and Company Analysis are subjective and based on general reading material and business news, Analysis of Financial Statements is an Objective thing based on Facts and Figures ultimately culminating in Ratio Analysis based on which you make long term decisions.

In this course hosted by PRUDENCE Engineering and Financial Consultants, Col (Dr) Shabbar Shahid, an Army Veteran and a post graduate in Engineering and Finance with a Doctorate in management explains how an investor or any person can read, understand and analyze the financial statements and do ratio analysis of any business to determine the financial health of that business. This  would help in financial analysis of a business and also identify good stocks for long term investment.  The contents of the  3 financial statements viz. the Balance sheet, the PnL or income statement and the Cash flow statement and their relevance have been explained threadbare in detail for any non finance person to understand easily. Figures for the past 5 years have been analysed to explain how  one can determine the growth of a company or otherwise.

 

Concepts like Assets, Liabilities, Retained earnings, Debt Equity, Current Assets, Current Liabilities, Working Capital, Top line-Bottom line, Revenue, Expenses, EBIT, Net profit, Cash flows from operating activities, Investment activities, Financing activities, Difference between Face value- Book value and market value and various ratios like EPS, PE, Debt Equity and  Current ratio have been explained from the basics in a simple manner which one does not find in books. At the end of each financial statement, the key takeaways have been recapitulated.

The real life financial statements of a running company have been used to explain the contents, refraining from any hypothetical examples.

This course will be of immense benefit to those who intend to invest in Stock market as well as those who are already investing but with limited knowledge inputs.  This course will help the students of finance, commerce and those pursuing or intending to pursue management courses in any subject to build their professional career on sound knowledge.  Students of other disciplines like science, engineering and humanities who are interested in managing their personal investments will also find this course very useful. 

If you own a business or are an employee responsible for growth of your company or if you are planning to invest in any company and if you are not familiar with reading the financial statements, then this course shall be of great help to you. You must at least have a look at the preview.

The speaker knows the subject well and speaks to the point without any glamour, frills or divergence thus, respecting the value of time.

Legal Disclaimer:

This course is purely for educational purposes. Investment and trading in stock market involves financial risk. Students taking this course are advised to exercise due diligence before making any investment or trade in stock market. The instructor or any party related to this course or it’s content will not be responsible for any kind of loss to anyone in anyway, due to this course.

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