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Corporate Finance 101: Financial Statement Analysis & Ratios (Udemy.com)

A zoom-in, zoom-out, connect-the-dots guide to understanding financial statements, and analysing companies

Created by: Loony Corn

Last updated August 2016

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What you will learn

  • Interpret financial statements - the Balance Sheet, Income Statement and Statement of Cash Flows
  • Parse SEC filings such as the 10K and 10Q to understand the business model of any company entirely from its investor filings
  • Calculate ratios in all major categories: liquidity, leverage, turnover, profitability and valuation
  • Apply Dupont's Identity to see whether a company's stock returns are driven by operational efficiency, asset efficiency or leverage
  • Calculate the sustainable rate of growth at which a company can grow without external financing

How it compares

Against the other 376 rated Udemy courses in Finance & Accounting on CourseDuck:

  • Rating4.4 out of 5higher than 28% of them
  • Reviews176#280 of 377 by number of reviews
  • Length8 hourslonger than 66% of them
  • Last updatedAugust 2016earlier than 97% of them

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Course Description

This is a zoom-in, zoom-out, connect-the-dots tour of Financial Statement Analysis

Let's parse that

  • 'connect the dots': Financial Statement Analysis gets a bad rep because its hard to connect the nitty-gritty of the financial statements to the company as a whole. This course makes a serious effort to do exactly that.
  • 'zoom in': Getting the details is very important in corporate finance - a small typo, or a minor misunderstanding can cost a company big. This course gets the details right where they are important.
  • 'zoom out': Details are important, but not always. You probably don't care about the nitty gritty of accounting for contingent liabilities if you don't know what accounts payable are. This course knows when to switch to the big picture.

What's Covered:

  • Corporate Finance Introduced: partnerships, proprietorships and the corporation
  • The Agency Problem: How auditors, the board of directors and the capital markets regulator play a role
  • Financial Statements: Balance Sheet, Income Statement, Statement of Comprehensive Income and Cash Flow Statement at exactly the right level of detail
  • Ratios: Five important types of ratios: liquidity ratios, leverage ratios, turnover ratios, profitability ratios and valuation ratios
  • Dupont's Identity: Return-on-equity can be decomposed into 3 elements: profits, asset-leanness and leverage.
  • External Financing Needed (EFN) and the Sustainable Rate of Growth: How fast can a company grow if it chooses to forgo external funding? Every startup should know this, really.
  • Common Accounting Shenanigans: The playbook of financial statement cheats has been studied by auditors and regulators - learn from history so you are not condemned to repeat it.

Case Studies:

Understanding a company entirely from its investor filings

  • Facebook: Fast-growing and profitable, this is the dream stock right now.
  • LinkedIn: Versatile, but struggling to break through - the jury seems out on LinkedIn
  • Twitter: Bleeding red and slowing growth - Twitter seems to be in trouble.

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Instructor Details

Loony Corn

Loonycorn is us, Janani Ravi and Vitthal Srinivasan. Between us, we have studied at Stanford, been admitted to IIM Ahmedabad and have spent years  working in tech, in the Bay Area, New York, Singapore and Bangalore.

Janani: 7 years at Google (New York, Singapore); Studied at Stanford; also worked at Flipkart and Microsoft

Vitthal: Also Google (Singapore) and studied at Stanford; Flipkart, Credit Suisse and INSEAD too

We think we might have hit upon a neat way of teaching complicated tech courses in a funny, practical, engaging way, which is why we are so excited to be here on Udemy!

We hope you will try our offerings, and think you'll like them :-)

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Reviews

4.4

176 ratings on Udemy

Select a bar to show only those reviews.Select the bar again to show every rating.

By Rashi Dhawan on 3/2/2022

This course is very useful for those who wants to learn financial analysis of any company … course is very well explained and very easy to learn

By Jignesh Dave on 7/8/2021

It is very specific and broken down into pieces for a common man to understand.

By Mohammed Obaidullah Dilkash on 9/8/2020

Excellent course for those students who want to develop their careers in corporate finance. All these concepts related to corporate finance are being taught well with real life examples.

By Anjali Sharma on 5/6/2020

The explanation to the concepts in the course was easy and clear to understand.The teaching pedagogy involving the live examples really helped in comprehending the concepts well.

By Akinola David Oluwaseun on 4/26/2020

Going through this course has been wonderful. there are a whole lots of new things learnt which could be applicable to my work thanks.

By Suchinder Lakshmanasamy on 4/12/2020

Very detailed and relevant. At the same time concepts are explained in a simple and easy to understand manner.

By george AD on 2/3/2019

There are some useful tips that can help someone who has a basic understanding of accounting.

By Brandon on 1/14/2019

It is difficult to understand with his accent. And the captioning didn’t function on this video. The information was solid though just hard to understand.

By Travis Greene on 8/25/2017

Good, quick overview of the main ideas and concepts. I think these courses are a solid introduction to a completely new topic. Because there is no practice material you likely won't retain much or develop an understanding beyond surface level. However, if you just want to brush up on theory before taking a real university course, I think these are great. PS: Take notes! The design of these Loony Corn courses make it really easy to take notes.

By Marilyn Spiegel on 6/6/2017

The concepts are explained simply so that the essence of the concept is conveyed. The male is easier to understand than the female.

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Overall Score : 88 / 100