In this course, participants will learn the foundations of accounting principles and financial analysis, develop an understanding of the links between these, and the measurement of value creation at the firm level. This is the first course in a four-course Specialization on the Essentials of Corporate Financial Analysis and Decision-Making, created in partnership between the University of Melbourne and Bank of New York Mellon (BNY Mellon).
This course is part of the Essentials of Corporate Finance Specialization
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Essentials of Corporate Finance SpecializationThe University of MelbourneAbout this Course
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Course 1 of 5 in the
Approx. 11 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish
Skills you will gain
- Ratio Analysis
- Financial Analysis
- Financial Ratio
- Balance Sheet
Flexible deadlines
Reset deadlines in accordance to your schedule.
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Course 1 of 5 in the
Approx. 11 hours to complete
English
Subtitles: Arabic, French, Portuguese (European), Italian, Vietnamese, German, Russian, English, Spanish
Offered by
The University of Melbourne
The University of Melbourne is an internationally recognised research intensive University with a strong tradition of excellence in teaching, research, and community engagement. Established in 1853, it is Australia's second oldest University.
Syllabus - What you will learn from this course
3 hours to complete
An Introduction to Accounting Principles: The Language of Capital Markets
This week we will define and explain the key financial statements produced by a company and reported to its shareholders. We will discuss the different core elements within those statements following basic accounting principles with the discussion framed in reference to excerpts from the actual financial statements produced by the US-listed food company Kellogg's.
3 hours to complete
8 videos (Total 40 min), 7 readings, 2 quizzes
2 hours to complete
An Intuition-based Introduction to Financial Analysis
Understanding the importance and the accounting principles underpinning the key financial statements of a company, we now turn our attention to synthesizing and condensing the financial statement information for the purpose of financial analysis. Specifically, we demonstrate how financial analysts use ratio analysis to measure relative profitability, leverage, efficiency and the liquidity of a company. Again, we utilise information from the financial statements of Kellogg's and its competitor Kraft to demonstrate these financial analysis techniques.
2 hours to complete
8 videos (Total 49 min), 1 reading, 2 quizzes
2 hours to complete
The Links Between Accounting Principles and Financial Decision-making
Having established initial basic financial analyst's toolset in the first two weeks of this course, some caution is warranted as we turn our attention to some of the pitfalls associated with uncritical use of financial statements by analysts. Specifically, we highlight how the use of historical cost and accrual-based accounting might lead to sub-optimal corporate financial decision-making. We then discuss how the agency relationship between management and the owners of a company may also lead to poor corporate decision-making. We conclude with a cautionary tale of misleading accounting practices and the regulator's response to these cases.
2 hours to complete
6 videos (Total 37 min), 1 reading, 2 quizzes
5 hours to complete
Value Measurement via Discounted Cash Flow Analysis
Having identified the key elements of a company's financial statements, and the way in which information from these statements can be utilized in financial analysis, we shift our focus this week to discounted cash flow (DCF) analysis. Sound financial decision-making by CFOs and investors, requires an assessment of future (uncertain) financial outcomes. DCF analysis allows the financial analyst to extrapolate the financial statement information in a forward-looking manner. The DCF technique provides an objective way in which we can evaluate financial decisions while overcoming many of the shortcomings associated with standard ratio analysis.
5 hours to complete
6 videos (Total 51 min), 4 readings, 5 quizzes
Reviews
TOP REVIEWS FROM THE LANGUAGE AND TOOLS OF FINANCIAL ANALYSIS
by JRMay 18, 2020
Really insightful instruction on the basics of accounting and finance! I would highly recommend this course to anyone looking to begin learning about financial analysis. No prior experience is needed.
by GKJun 17, 2021
The insctructor performs excellent presentations. I am also very satisfied with the course resources. The topics gave me a good overview on the basics. Highly recommended for beginners.
by JCJul 17, 2016
WOW!!! By far the BEST Course in Coursera catalog! Incredible the tools that are taught. Thanks so much. Absolutely recommended for every person regardless of professional background.
by ADJan 7, 2021
The course is easy to be understood especially if the person has a finance/accounting background. The classes were engaging and gave much information about economic conditions.
About the Essentials of Corporate Finance Specialization
You will gain a firm understanding of corporate finance, including accounting principles and financial analysis, how value is created by global markets, the choices firms face when making financial decisions and defining attitudes towards risk. The Specialization concludes with a Capstone project that allows you to apply the skills you've learned throughout the courses.
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