Financial Statements: Analyze and Apply Key Ratios

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Financial Statements: Analyze and Apply Key Ratios

This course is part of multiple programs.

Instructor: LearningMate

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2 modules

Gain insight into a topic and learn the fundamentals.

Intermediate level

Recommended experience

2 hours to complete

Flexible schedule

Learn at your own pace

2 modules

Gain insight into a topic and learn the fundamentals.

Intermediate level

Recommended experience

2 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Analyze a company's financial health by differentiating the 3 core financial statements and calculating key profitability and liquidity ratios.

Skills you'll gain

Details to know

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There are 2 modules in this course

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.

Through practical, hands-on exercises, you will move from theory to application. You will use spreadsheet software to calculate and interpret two of the most fundamental financial ratios: gross margin and the current ratio. Using real-world case studies of companies like Apple and Sears, you will see how these metrics reveal a company's core profitability and its ability to meet short-term obligations. By the end of this course, you will have the ability to transform raw financial data from a 10-K report into meaningful insights, a critical skill for any role that requires data-driven business decisions. You will leave the course with a completed financial analysis project, ready to apply your new skills in a real-world context.

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

2 videosTotal 12 minutes

When Statements Tell a Story: The Fall of Sears5 minutes
How to Navigate a 10-K Report?7 minutes

2 readingsTotal 16 minutes

The Three Pillars: Income Statement, Balance Sheet, and Cash Flow8 minutes
How the Statements Connect: A Quick Guide8 minutes

2 assignmentsTotal 20 minutes

Hands-On Learning: Classifying Financial Information15 minutes
Knowledge Check: Statement Fundamentals5 minutes

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

2 videosTotal 11 minutes

Competitive Edge: How Ratios Reveal Company Secrets5 minutes
Calculating Gross Margin and Current Ratio in a Spreadsheet6 minutes

2 readingsTotal 14 minutes

Beyond the Numbers: How to Benchmark Financial Ratios7 minutes
Defining and Understanding the Key Ratios7 minutes

3 assignmentsTotal 55 minutes

Hands-On Learning: Calculate Ratios for a Tech Giant15 minutes
Investment Decision10 minutes
Final Project: Financial Analysis Project30 minutes

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Instructor

LearningMate

246 Courses16,579 learners

Offered by

Coursera

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