Analyzing the Income Statement and Balance Sheet
Overview/Description
This course examines the Income Statement and the Balance Sheet, their respective structures and relationships as they correlate to business activities, and introduces common methods of analysis when using these financial statements to measure a business's financial performance.
Target
Audience
This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.
Expected
Duration
2.0 hours
Lesson
Objectives:
The Basis of the Income Statement and Balance Sheet
recognize the benefits in understanding the basis of the Income Statement and the Balance Sheet as a key in understanding how business decisions are made.
determine the connection between the Income Statement and the Balance Sheet as they reflect different business activities.
relate line items in the Income Statement to business decisions and strategies.
relate line items in the Balance Sheet to business decisions and strategies.
Common Size Analysis
recognize the benefit of using common size analysis of the Income Statement and Balance Sheet to understand the business strategies that a company is employing.
use common size analysis to determine management strategies and outcomes.
use "change over time" (or "trend") analysis to identify and interpret trends in business strategies.
use common size ratios for peer group analysis in comparing company activity and performance to industry averages.
Course Number: FIN0253