Interpreting Financial Statements For Retail Investors

Analyze financial statements to make informed investment decisions in the stock market

What you'll learn

Understand the stock market, stock screeners, and brokerage options

Learn how to interpret the income statement, balance sheet, and cash flow statement to assess a company’s financial health

Understand revenue streams, key expenses (SGA, R&D, D&A), profitability metrics (gross, operating, and net margin), and industry variations

Explore liquidity, solvency, debt management, and key financial ratios to measure a company's stability and risk exposure.

Differentiate between operating, investing, and financing cash flows, and recognize the significance of capital expenditures

Requirements

No prerequisites are required for this course

Description

In this comprehensive course, you will learn how to interpret and analyze the key financial figures found in financial statements, allowing you to make informed decisions when assessing businesses. The course is highly practical, and each lesson is designed to help you understand how to apply these concepts to real-world scenarios. We will use a variety of examples from over 50 businesses across different industries to highlight the differences and similarities in financial statements, so you can see firsthand how numbers can vary based on the nature of the business.Through these real-world examples, you will not only learn to read balance sheets, income statements, and cash flow statements but also understand what they truly represent in the context of a company’s financial health. By the end of the course, you will be able to make an informed decision on whether a company is worth further investigation or if it's better to move on, thus saving time and effort. You’ll also gain the skills necessary to identify red flags and understand the financial strengths or weaknesses of a company before diving deeper into advanced analysis.Whether you're new to investing or looking to refine your skills, this course provides the tools and knowledge you need to assess businesses effectively. It’s a great resource for anyone looking to understand financial statements and how they can guide your investment decisions.Disclaimer: The materials in this course are for educational purposes only and do not constitute financial advice or recommendations to buy or sell any stocks. Always conduct your own due diligence and seek professional advice when needed.

Overview

Section 1: Introduction

Lecture 1 Welcome to the course

Lecture 2 What is the stock market

Lecture 3 Financial Statements Overview

Lecture 4 Brokers and accounts

Lecture 5 TradingView

Lecture 6 Yahoo Finance

Lecture 7 Finviz & Insider Screener

Lecture 8 SimplywallST

Lecture 9 QuickFS and Dataroma

Section 2: Income Statement

Lecture 10 Revenue

Lecture 11 Revenue Streams

Lecture 12 Cost of goods sold

Lecture 13 Gross Margin

Lecture 14 Selling, General, and Administrative (SGA) Expenses

Lecture 15 Research & Development (R&D)

Lecture 16 Depreciation

Lecture 17 Operating Income & Margin

Lecture 18 Interest Expenses

Lecture 19 Sale of Assets & Other

Lecture 20 Pretax income

Lecture 21 Net Income (Earnings)

Lecture 22 Net Margin

Lecture 23 Earnings per Share (EPS)

Section 3: Balance Sheet

Lecture 24 Cash and Cash Equivalents

Lecture 25 Inventory

Lecture 26 Net Receivables

Lecture 27 Prepaid Expenses

Lecture 28 Property, Plant, and Equipment (PPE) and Fixed Asset Turnover Ratio (FAT)

Lecture 29 Intangible assets and goodwill

Lecture 30 Long-term investments

Lecture 31 Return on Assets (ROA)

Lecture 32 Accounts Payable, Days Payables Outstanding, and Days Sales Outstanding

Lecture 33 Debts

Lecture 34 Liquidity Ratios

Lecture 35 Deferred Tax

Lecture 36 Minority Interests

Lecture 37 Debt to Shareholders’ Equity

Lecture 38 Preferred vs Common Stocks

Lecture 39 Retained Earnings

Lecture 40 Return on Shareholders’ Equity

Lecture 41 Return on Invested Capital (ROIC)

Section 4: Cash Flow Statement

Lecture 42 Why do we need the cash flow statement

Lecture 43 Cash Flow from Operating Activities

Lecture 44 Cash Flow from Investing Activities

Lecture 45 Cash Flow from Financing Activities

Section 5: Wrapping up

Lecture 46 Next Steps

Lecture 47 Thank you!

Retail or individual investors who want to understand businesses before investing their savings in the stock market.