Financial Statements: Analyze and Apply Key Ratios is an intermediate course designed for professionals seeking to build foundational skills in financial analysis. This course will empower you to decode the financial health of a business by interpreting its three core financial statements. You will learn to confidently distinguish the unique purpose and time orientation of the Income Statement, Balance Sheet, and Cash Flow Statement, understanding when to use each to find the information that matters.

Financial Statements: Analyze and Apply Key Ratios

Financial Statements: Analyze and Apply Key Ratios
This course is part of Financial Data Analysis with Excel Specialization

Instructor: LearningMate
Access provided by ExxonMobil
Recommended experience
What you'll learn
Analyze a company's financial health by differentiating the 3 core financial statements and calculating key profitability and liquidity ratios.
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February 2026
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There are 2 modules in this course
This module lays the essential groundwork for financial analysis by introducing the three core financial statements, which serve as the definitive language of business. Learners will move beyond abstract definitions to explore why a precise understanding of each statement's purpose and time orientation is a non-negotiable skill in any business environment. The module begins by establishing the real-world stakes, using the dramatic collapse of Sears to show what happens when financial warnings are ignored. Learners will then systematically unpack the function of the Income Statement, Balance Sheet, and Cash Flow Statement. Through practical, hands-on activities, you will learn to navigate a real 10-K report and correctly classify financial data, thereby ensuring that you can confidently identify which statement tells which part of a company's financial story.
What's included
2 videos2 readings2 assignments
In this module, learners will transition from foundational knowledge to practical application, bridging the gap between raw financial data and actionable business insight. You will learn not only how to calculate two of the most powerful diagnostic ratios—gross margin and the current ratio—but also how to interpret them to judge a company's health. Using a step-by-step screencast, you will master the application of basic spreadsheet formulas to financial data. The learning then deepens as you analyze real-world competitors, such as Coca-Cola and PepsiCo, discovering how these metrics are used to benchmark performance and inform strategy. The module culminates in activities that challenge you to explain the meaning behind the numbers, preparing you for the critical thinking required in any analysis role.
What's included
2 videos2 readings3 assignments
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Jennifer J.

Larry W.

Chaitanya A.
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Fundação Instituto de Administração

University of Illinois Urbana-Champaign

University of Illinois Urbana-Champaign
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