Fundamental Analysis. Understanding Financial Statements

What you'll learn
Importance of Fundamental Analysis in Capital Markets
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
Requirements
There are no prerequisites as we discuss from basics.
Description
The Genesis
Fundamental Analysis and Technical Analysis are two divergent aspects of Capital Markets. If you are looking at investing in
Stock Market
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.
The Void
While investors appreciate the necessity of reading, understanding and analysing the financial statements, most small time investors are not able to do so because they do not find a suitable instructor or a course which gives a logical and structured explanation in a simple understandable format. Financial statements at the face of it appear something complicated, which actually they are not. Explaining such financial jargons to non-finance people itself is an art and there is a clear void in this area.
Intent of this Course.
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 analyse the financial statements and do ratio analysis of any business to determine the financial health of that business. This would help not only in
financial analysis
of a business but also helps to identify good stocks for long term investment. The intent is to impart conceptual knowledge combined with practical applications.
Layout and Content
The course is spread over five sections containing over 45 lessons over a period of almost six and a half hours.
Section 1
explains the Balance Sheet in detail.
Section 2
explains the Income Statement also known as PnL statement.
Section 3
explains the Cash Flow statement.
Section 4
explains some Ratio Analysis and
Section 5
is a space for add on lessons where the instructor tries to answer the questions from students through add on video lessons.
Prospective learners
This course is ideal for people who are already in the Capital markets or intend making a career in the Capital markets. People who indulge in
Value Investing
and those who intend to
invest in Stock market
or are already investing but with limited knowledge inputs will find this course of immense value.
This course will help finance professionals, accountants and also 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.
This course in Not specific to Indian Capital Markets or US stock market or indices like Nifty, Sensex, NASDAQ or Dow Jones but a conceptual course applicable to all Capital Markets / Stock Markets across the globe.
End Result and Key Takeaways
On completion of this course, the students will be able to read, understand and analyse the financial statements and do ratio analysis of any business from investment point of view.
Students will have a clear understanding of 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 and 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.
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.
The real-life financial statements of a company have been used to explain the contents, refraining from any hypothetical examples.
It is an educational course to enhance your knowledge.
The instructor 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.
Who this course is for
Finance Professionals and Accountants at the beginning of their career
Students of Finance and Financial Management and those who are looking forward to a successful career in the field of finance and investment
Those who invest or are interested in investing in stock market
Students of commerce and business courses and who look forward to become CFA, CFO or Finance managers or Financial Analysts
University and College students who would like to enhance their finance and investment knowledge
Business owners and Entrepreneurs who would like to analyse the financial strength of their own business
Students aspiring to become financial analyst, Financial consultants or Finance managers
Anyone who is keen to learn Finance and Investment or Financial Analysis
Stock market investors who would like to enhance their ability to evaluate stocks for long term investment
Students undergoing professional courses in Finance like CFA, CA, MBA etc for better understanding of the subject
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