Financial Literacy

Reading Financial Statements

Read any company's numbers with confidence

12 lessons4 modules9h 0m durationbeginner level

Instructor: StretchLearn Faculty

About this course

This beginner course teaches non-accountants how to read and interpret the income statement, balance sheet, and cash flow statement. Through worked examples, named ratios, and red-flag checklists, you will learn how the three statements tie together. By the end you can pick up a 10-K or a vendor's accounts and form a defensible opinion in minutes.

Curriculum

Module 1: Financial Statement Foundations3 lessons

Why Financial Statements Exist and Who Reads ThemPreview45m
Accrual vs Cash Accounting and the Matching Principle🔒45m
GAAP, the Audit Opinion, and Where to Find Statements🔒45m

Module 2: The Income Statement3 lessons

From Revenue to Net Income, Line by Line🔒45m
Margins, EBITDA, and Quality of Earnings🔒45m
Reading Trends and Spotting Income Statement Red Flags🔒45m

Module 3: The Balance Sheet3 lessons

The Accounting Equation and Statement Structure🔒45m
Liquidity and Working Capital🔒45m
Solvency, Leverage, and Return on Equity🔒45m

Module 4: Cash Flow and Connecting the Statements3 lessons

The Three Sections of the Cash Flow Statement🔒45m
Direct vs Indirect Method and Cash Flow Red Flags🔒45m
How the Three Statements Connect🔒45m