Financial Analysis Fundamentals (2024)

This practical course in financial analysis teaches you how to conduct a comprehensive financial evaluation of any organization. You’ll learn to use a range of ratios derived from financial statements, and you’ll also discover best practices for presenting your findings in Excel.

Calculate and interpret ratios using a company’s financial statements.
Perform in-depth vertical and horizontal analysis to understand how a business could improve operations, capital structure, and asset utilization.
Use the DuPont pyramid of ratios to get a more comprehensive view of a business.

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Corporate Finance Institute

Financial Analysis Fundamentals

Overview
What You'll Learn
Career Programs
What Students Say
FAQ

Overview

Financial Analysis Fundamentals Course Overview

Financial analysis is a crucial aspectof assessing a business’s financial health. It offers insights into performanceand highlights potential vulnerabilities. In CFI’s “Financial AnalysisFundamentals” course, we will compute and interpret ratios for threedifferent companies, offering insights into their profitability, assetutilization, leverage, and liquidity. Subsequently, we will compare thesecompanies, examining trends, benchmarking, and delving into the DuPont Pyramid.

Financial Analysis Fundamentals Learning Objectives

Calculate and interpret various returnratios, such as return on equity and return on assets.
Conduct an in-depth vertical analysisof the income statement, including the calculation and interpretation ofdifferent profitability ratios.
Assess a company’s asset utilizationefficiency including undertaking a detailed assessment of its work capital.
Calculate and interpret a wide rangeof leverage and liquidity ratios.
Conduct and present a comprehensivehorizontal (trend) financial analysis.
Compare a company’s performanceagainst 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:

Accounting Fundamentals
Reading Financial Statements

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/

Financial Analysis Fundamentals

4.9

Led byScott Powell

Level 3

Approx 5h to complete

100% online and self-paced

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What you'll learn

Lesson

Introduction

Course Introduction Free Preview Course Slides

Profitability and Return Ratio Analysis

What is the Best Practice Financial Analysis Free Preview Critical Tips for Effective Financial Analysis Free Preview Financial Analysis Ratio Categories Free Preview The Three Financial Statements Free Preview Return Ratios Free Preview 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

Liquidity Analysis

Current and Quick Ratios EBITDA to Interest Ratio Liquidity Ratios Walkthrough Liquidity Ratios Practice Interactive Exercise 5

Trend (Horizontal) Analysis

What is Trend Analysis The Benefit of Trend Analysis Downloadable File Trend Analysis Walkthrough Growth Ratios Growth and Degree of Leverage Downloadable File Operative Leverage Scenario Financial Leverage and Growth Financial Leverage Scenario

Peer and Industry Benchmarking

What Is Benchmarking Industry and Peer Group Benchmarking Picking Peer Group for Benchmarking Download Benchmarking Walkthrough Interactive Exercise 6

Pyramid Analysis

Background to the DuPont Pyramid Breaking Down the DuPont Pyramid Big Retailer 3 Step DuPont Pyramid Walkthrough Mid Retailer 3 Step DuPont Pyramid Practice Small Retailer 3 Step DuPont Pyramid Debrief Interactive Exercise 7 Downloadable Files

Summary

Course Summary Qualified assessment

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 LearnedFinancial modeling and valuation, sensitivity analysis, strategy
Career PrepInvestment banking and equity research, FP&A, corporate development

Learn More

FinTech Industry Professional (FTIP™)

Skills LearnedFinancial Technology Fundamentals, Data Science and Machine Learning, Cryptocurrencies and Blockchain
Career PrepData Science and Machine Learning, Data Analyst, Business Analyst, Software Developer

Learn More

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

YOU PEOPLE HAVE BEEN A BLESSING TO MY LIFE

THANKYOU FOR ADDING MORE VALUE UNTO ME

JOANNE PRECIOUS NAMUYINGO

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

Frequently Asked Questions

If you haven’t found your answer from our FAQ, please send us a message.

What are the requirements to take the courses?

All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

How long do I have to complete the courses?

You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.

Are CFI courses officially accredited?

Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

Are there any additional fees or costs?

None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.

What currency are your courses priced in?

All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.

How do I earn my certificates?

Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

How are the exams conducted?

Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.