The Course

Read a company like an investor

Whether you are buying shares on an exchange or taking a private stake, you are buying part of a business — and the financial statements are its story. This free course teaches you to test whether that story is credible: the three core statements, the notes, trends, ratios, and the red flags that mean “dig deeper.” Every lesson ends with a knowledge check, and the course closes with a scored case study.

1. 1 Thinking Like an Owner Buying a share or a private stake means buying part of a business — and the financial statements are its story. The four questions every investor is really asking.
2. 2 The Financial Statement Family Income statement, balance sheet, cash flow statement, notes, and the auditor’s report — what each document answers and how much you can rely on it.
3. 3 Reading the Income Statement Revenue, margins, and the bottom line — and why reported profit does not automatically mean cash in the bank.
4. 4 Reading the Balance Sheet Assets = liabilities + equity. Spotting liquidity pressure, heavy debt, negative equity, and balances growing faster than sales.
5. 5 The Cash Flow Statement The reality check behind the profit number — operating, investing, and financing cash flows, and free cash flow as the investor’s north star.
6. 6 Connecting the Three Statements One business, three stories — the reconciliation points that tie profit, position, and cash together, and the “profitable but cash-poor” trap.
7. 7 Trend Analysis Horizontal and vertical analysis — reading the direction of travel across years and spotting margins that quietly deteriorate while sales grow.
8. 8 Ratio Analysis for Investors A focused toolkit: liquidity, profitability, leverage, efficiency, and valuation ratios — what each signals and where each one lies.
9. 9 Testing Management’s Story Projections and guidance are assumptions translated into numbers. Sensitivity analysis, downside scenarios, and the red flags that mean “dig deeper.”
10. 10 Capstone: ACME Inc. A full walk-through of one company — historical results, a bold forecast, and strained working capital. Invest, invest on terms, or pass? Ends with a scored final test.