The University of Melbourne
The Language and Tools of Financial Analysis
The University of Melbourne

The Language and Tools of Financial Analysis

This course is part of Essentials of Corporate Finance Specialization

Taught in English

Some content may not be translated

Paul Kofman
Sean Pinder

Instructors: Paul Kofman

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Course

Gain insight into a topic and learn the fundamentals

4.7

(1,324 reviews)

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97%

11 hours (approximately)
Flexible schedule
Learn at your own pace

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Assessments

10 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.7

(1,324 reviews)

|

97%

11 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

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This course is part of the Essentials of Corporate Finance Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 4 modules in this course

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.

What's included

8 videos7 readings2 quizzes

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.

What's included

8 videos1 reading2 quizzes

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.

What's included

6 videos1 reading2 quizzes

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.

What's included

6 videos4 readings4 quizzes1 peer review

Instructors

Instructor ratings
4.6 (137 ratings)
Paul Kofman
The University of Melbourne
5 Courses87,664 learners

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