Income Statement Basics Course

Learn how to read, interpret and analyse in depth the Income Statement of any company.

What you'll learn

Understand and confidently define the essence of the Income Statement

Interpret and analyze each item included in the Income Statement

Describe and distinguish the operating from the non-operating components

Calculate and interpret both the basic and the diluted shares

Understand and describe the general principles of Revenue and Expense Recognition, and be aware of their implications and applications

Requirements

This is an introductury course with basic accounting knowledge necessary.

Description

Are you looking to become a finance professional?Would you like to be able to analyze the Income Statement of any company with ease?Tired of reading complex and uncomprehensible finance literature and textbooks?Every decision around an organization revolves around Finance. In addition, knowing how to read and interpret financial statements means that you are fluent in the language of business.  The Income Statement is a snapshot of a company's revenues, expenses and net income, and having the ability to understand it in depth would elevate you on another level as a finance professional. Knowing how to decipher any company's revenues and expenses will set you on the course to becoming a real finance professional. Who should take this course?Financial Analysts who aim to become Seniors or Leads within their organization.Accounting Analysts who would like to transfer to the world of Finance.Business professionals seeking to ameliorate their skills and enhance their decision-making capabilities.Non-finance professionals who aspire to become executives within their company.Students who desire to become finance professionals and want to build strong foundations.Professionals who would like to be involved in financial planning and decision-making would need the fundamentals of the Income Statement.How is this course going to benefit you?Understanding the financial performance of a company will enable you to properly evaluate profitability, find out what are the factors affecting the net earnings, identify trends, compare performance with companies in the same sector, take part in financial planning and facilitate the decision making process.Most online courses focus on explaining the basic financial statements for the length of 4-5 minute videos, not focusing in detail to the main items present in the income statement. Our focus is to dissect the Profit and Loss statement so that you would have the foundation to read, interpret and analyse figures lika a true professional. Financial professionals analyse financial statements to find out whether companies have done well or poorly in the past, and gain insight on how the company might do in the future. Being able to read and interpret correctly the figures inside the Income Statement (and the rest of the financial statements) enables you to spot trends and clues as to what the future might hold. Looking at how past decisions impacted the statements of the future requires deep knowledge of each item present in the income statement.How is this course structured?Section 1: The Essence of the Income Statement. We discuss in detail what it communicates to its readers, how it is structured and what principles it embeds.Section 2: The course proceeds with an analysis and an explanation of the Sales Revenues, the COGS and the Gross Profit.Section 3: The focus falls on the Variable, the Fixed, the Direct and the Indirect Costs in order to draw a clear and permanent line into what exactly is included as costs in the COGS line.Section 4:  Accrual Basis Accounting - how and why it is used by companies. Without understanding the concepts of Accrual Basis Accounting, Revenue and Expense Recognition one cannot fully understand how the Income Statement or any other financial statement works.Section 5: Operating Income and EBIT. Here we discuss in detail the Operating Costs of the business  along with their result the Operating Income. We also explain the difference between the Operating Income and the EBIT. Section 6: The Net Income item and the Earnings per Share topics. In this section of the course we have focused on how to calculate the Basic versus the Diluted EPS with clear questions and examples.Section 7: Finally, there are a few additional videos on how the Income Statement is being applied into the Financial Analysis world, defining ratios and KPIs that companies would use in their day-to-day activities.

Overview

Section 1: Introduction

Lecture 1 Essence of the Income Statement

Lecture 2 Chapter Quiz

Section 2: Sales Revenues, COGS, and Gross Profit

Lecture 3 Sales Revenues

Lecture 4 COGS

Lecture 5 Gross Profit

Lecture 6 Chapter Quizz

Section 3: Variable, Fixed, Direct and Indirect Costs

Lecture 7 Intro

Lecture 8 Variable and Fixed Costs

Lecture 9 Direct and Indirect Costs

Lecture 10 Quizz

Section 4: Accrual Basis Accounting

Lecture 11 Revenue and Expense Recognition

Lecture 12 Revenue Recognition Special Cases

Lecture 13 Chapter Quiz

Section 5: Operating Income vs EBIT

Lecture 14 SG&A and Operating Income

Lecture 15 Operating Income vs EBIT

Lecture 16 Comments on the P&L items

Lecture 17 Chapter Quizz

Section 6: Net Income

Lecture 18 Essence of the Net Income

Lecture 19 Earnings per Share

Lecture 20 Simple vs Complex Capital Structure

Lecture 21 Basic and Diluted EPS

Lecture 22 Diluted EPS Convertible Debt

Lecture 23 Diluted EPS Convertible Employee Stock Options

Lecture 24 Chapter Quizz

Section 7: Financial Analysis

Lecture 25 Financial Reporting vs Financial Analysis

Lecture 26 Financial Ratios

Finance students who would like to gain a deeper and perpetual understanding into each and every item inside the income statement.,Financial analysts and Finance professionals who would like to upgrade their knowledge of the basics and allow themselves to advance further into their careers.,Finance enthusiasts who would like to gain the foundation to properly read, interpret and analyze the Profit and Loss statement of any company.,This course could also serve as a great foundation and refreshment for CFA level I students within the Income Statement topics of the exam.