Reading Financial Statements

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Reading Financial Statements

This course is part of Preparatory Certificate in Finance and Financial Markets Specialization

Instructor: CFI (Corporate Finance Institute)

8,192 already enrolled

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6 modules

Gain insight into a topic and learn the fundamentals.

47 reviews

Beginner level

No prior experience required

5 hours to complete

Flexible schedule

Learn at your own pace

6 modules

Gain insight into a topic and learn the fundamentals.

47 reviews

Beginner level

No prior experience required

5 hours to complete

Flexible schedule

Learn at your own pace

Skills you'll gain

Details to know

Shareable certificate

Add to your LinkedIn profile

Assessments

1 assignment

Taught in English

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This course is part of the Preparatory Certificate in Finance and Financial Markets Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 6 modules in this course

A thorough knowledge of financial statements and company reports is crucial to becoming a world-class financial analyst. In this course, learn how to read and understand financial statements. We use real company annual reports and financial statements to better understand and analyze the financial strength of a company and help us make more informed decisions.

Learning Objectives: • Learn the contents of an annual report. • Understand a company’s operations and business strategy. • Realize the many risk factors a company must navigate. • Analyze company financial statements, as well as its different business segments. • Read and comprehend the Management Discussion & Analysis (MD&A) section. • Review the notes to the financial statements for additional detail. This course is designed for anyone who wants to review accounting fundamentals and master the ability to read and interpret financial statements and reports. It will also be useful for current finance professionals who want to review concepts necessary for financial modeling and valuation in some of CFI’s core courses. The prerequisites are optional, but we recommend you complete these courses or possess the equivalent knowledge prior to enrolling in this course: Accounting Fundamentals

In this course, we will learn how to read and use annual reports and financial statements. Successfully navigate through an annual report and recognize its various components. Understand complex financial statement concepts like deferred taxes and goodwill. Read and interpret the notes to the financial statements.

What's included

2 videos2 readings

What's included

7 videos2 plugins

What's included

15 videos1 reading1 plugin

15 videos Total 38 minutes

The Three Main Financial Statements 2 minutes
Simplified Balance Sheet 1 minute
Starbucks Balance Sheet 2 minutes
Investments 2 minutes
Deferred Taxes 2 minutes
Deferred Tax Demo 8 minutes
Goodwill and Intangible Assets 3 minutes
Deferred Revenue 2 minutes
Common Vs. Preferred Shares 2 minutes
Authorized Vs. Outstanding Shares & Contributed Surplus 3 minutes
Par Value & Contributed Surplus 1 minute
Accumulated Other Comprehensive Income 1 minute
Full Disclosure Principle 2 minutes
Starbucks Balance Sheet & Footnotes - Part 1 3 minutes
Starbucks Balance Sheet & Footnotes - Part 2 4 minutes

1 reading Total 5 minutes

Deferred Tax Demonstration 5 minutes

1 plugin Total 30 minutes

Interactive Exercise 3 30 minutes

What's included

12 videos2 readings1 plugin

12 videos Total 42 minutes

Introduction to the Income Statement 1 minute
Cost of Sales 2 minutes
Selling, General, and Administrative Expenses 1 minute
Gains and Loses 1 minute
Income Statement and Notes 5 minutes
Introduction to the Cashflow Statement 2 minutes
Indirect Method Vs. Direct Method 1 minute
Starbucks Cashflow Statement 4 minutes
Calculating Subtotals 7 minutes
Calculating Ratios Demonstration 6 minutes
Common Size Income Statement Demonstration 5 minutes
IAG Annual Report 6 minutes

2 readings Total 10 minutes

Starbucks Financial Statements and Ratios (Template) Download 5 minutes
IAG 2023 Annual Report Download 5 minutes

1 plugin Total 30 minutes

Interactive Exercise 4 30 minutes

What's included

1 video2 readings

What's included

1 assignment

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Instructor

Instructor ratings

(11 ratings)

CFI (Corporate Finance Institute)

Corporate Finance Institute

29 Courses 121,999 learners

Offered by

Corporate Finance Institute

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Reviewed on Oct 4, 2025

Great and explained well! Enjoyed the instructor !

Reviewed on Jul 27, 2025

This course really helped me understanding the financial statements while giving insights to quick browsing of the annual report.

Reviewed on Mar 18, 2025

Really enjoyed the practical examples and how the final was set up. The information was delivered in an easy to comprehend manner.

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Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

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