Overview
Financial Analysis Fundamentals Course Overview
Financial analysis is a crucial aspect of assessing a business’s financial health. It offers insights into performance and highlights potential vulnerabilities. In CFI’s “Financial Analysis Fundamentals” course, we will compute and interpret ratios for three different companies, offering insights into their profitability, asset utilization, leverage, and liquidity. Subsequently, we will compare these companies, examining trends, benchmarking, and delving into the DuPont Pyramid.
Financial Analysis Fundamentals Learning Objectives
- Calculate and interpret various return ratios, such as return on equity and return on assets.
- Conduct an in-depth vertical analysis of the income statement, including the calculation and interpretation of different profitability ratios.
- Assess a company’s asset utilization efficiency including undertaking a detailed assessment of its work capital.
- Calculate and interpret a wide range of leverage and liquidity ratios.
- Conduct and present a comprehensive horizontal (trend) financial analysis.
- Compare a company’s performance against that of its industry peers to gain valuable insights.
Recommended Prep Courses
These preparatory courses are optional, but we recommend you to complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:Who should take this 
financial analysis course?
This financial analysis course is perfect for any aspiring financial analyst working in investment banking, financial planning and analysis (FP&A), equity research, corporate development, and other areas of finance and accounting.
This class counts as continuing professional education (CPE) credits for CPAs.
For further CPE information, please read before purchasing:
https://corporatefinanceinstitute.com/about/cpe-information/
Prerequisite Courses
Recommended courses to complete before taking this course.
Prerequisite Skills
Recommended skills to have before taking this course.
- Excel
- Logical thinking
- Financial accounting
Financial Analysis Fundamentals
Led by
Scott Powell
Level 3
2h 4min
100% online and self-paced
Field of Study: Finance
Start LearningWhat you'll learn
Lesson
Multimedia
Exams
Files
Introduction
Profitability and Return Ratio Analysis
What is the Best Practice Financial Analysis
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Critical Tips for Effective Financial Analysis
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Financial Analysis Ratio Categories
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The Three Financial Statements
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Return Ratios
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Downloadable Files
Model Overview
Free Preview
Return Ratios Walkthrough
Return Ratios Practice
Interactive Exercise 1
Profitability and Expense Ratios
Tax and Interest Ratios
Profitability and Expense Ratios Walkthrough
Profitability and Expense Ratios Practice
Interactive Exercise 2
Asset Utilization Analysis
Introduction to Asset Utilization Ratios
Asset Turnover Ratios
Cash Turnover and Days
A/R Turnover and Days
Inventory Turnover and Days
A/P Turnover and Days
Working Capital Defined
Combining Working Capital Days Ratios
Asset Utilization Ratios Walkthrough
Asset Utilization Ratios Practice
Interactive Exercise 3
Leverage Analysis
Introduction to Financial Leverage Ratios
Example of Low Leverage
Why Increase Debt Rather than Equity
Optimal Leverage
Total Assets and Total Liabilities to Equity Ratios
Debt to Equity and to Tangible Net Worth Ratios
Debt and Net Debt to EBITDA Ratios
Leverage Ratios Walkthrough
Leverage Ratios Practice
Interactive Exercise 4
Summary
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
Financial Modeling & Valuation Analyst (FMVA®) Certification
- Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
- Career Prep Investment banking and equity research, FP&A, corporate development
FinTech Industry Professional (FTIP®)
- Skills Learned Financial Technology Fundamentals, Data Science and Machine Learning, Cryptocurrencies and Blockchain
- Career Prep Data Science and Machine Learning, Data Analyst, Business Analyst, Software Developer
Accounting for Financial Analysts Specialization
- Skills learned Accounting, Financial Analysis, Reading Financial Statements and more
- Career prep Financial Planning & Analysis (FP&A), Corporate Development, Investment Banking, Private Equity, Equity Research, and more.
Finance for Non-Finance Managers
- Skills You’ll Gain Accounting, Finance, Budgeting and Forecasting, Strategy
- Great For Operations, Marketing or Sales Managers, Department Heads/Team Leaders, Strategy Consultant, Non-Finance Executive Roles (e.g. COO, CTO) and more
Financial Planning & Analysis Professional
- Skills You’ll Gain Accounting, Finance, Excel, Data Analysis, Financial Statement Analysis, Financial Modeling, Budgeting, Forecasting, Power Query, Power BI, Data Visualization, Economics, and more
- Great For The FPAP certification focuses on practical, desk-ready skills that are immediately applicable to current FP&A professionals or anyone seeking to land a role in FP&A
What Our Members Say
Informative, and Flexible
Alvin Mugisha
First certificate and a great experience
The course materials were very explanatory & educating.
Also the instructor was very knowledgeable. Farrokh Golpour
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My first learning experience with CFI
It is very user-friendly to go through the CFI interface. The course materials are well presented. Audrey Carrel Manga Ondoua
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