Analysis of Financial Statements


The biggest reason why only 4% of the total population of India invest in the stock market is the scams & frauds that happened in the past. Don’t you think that having the correct knowledge before investing in any company is very essential? This course will help you learn about valuation techniques so that you can save your money from fraud companies & get good returns from the stock market.

6 Modules

2 Hrs.


Course Outline

What you will learn:

  • What are Financial Statements.

  • Elements of Balance Sheet, Statement of Profit and Loss and Cash Flow Statement.

  • How to analyse the Financial Statements to form a judgement.

  • Ratio Analysis and Valuation Techniques.

  • Case Study on companies that have become fraudulent. 

About Course

Bhushan Steels, Laxmi Vilas Banks, IL&FS - Thousands of lives and millions of rupees were disrupted when the fraudulent activities of these companies came to the limelight. Such cases of people losing their life savings due to the unethical ways of some big corporate giants are always heartbreaking. And by the time people attempt to be more aware investors and plan to identify such frauds better next time, another fraud takes place, leaving all of us wondering if only there was a way to detect these malpractices in advance. But there is a way! And this way is as old as the concept of investing and accounting. Yes, it's knowing how to properly interpret the financial statements of a company. 


This course will highlight the importance of knowing how to analyse financial statements by explaining how the frauds at the above-mentioned companies could have been avoided if only investors knew how to read the statements. The course will try to easily explain financial statements and their various elements like Balance Sheet, Statement of Profit and Loss Account, Cash Flow Statement and Notes to Accounts. This course further explains how you can use ratio analysis for interpreting the non-financial aspects of any company. It also highlights the valuation techniques so that you can identify whether a share is underpriced or overpriced.

What you will get?





Course Syllabus

  • How Financial Statements help in analyzing companies?
  • Understanding Balance Sheet
  • Understanding Statement of Profit and Loss
  • Understanding Cash Flow Statement
  • Why should you use Ratio Analysis?
  • Profitability Ratios
  • Solvency Ratios
  • Liquidity Ratios
  • Activity Ratios
  • Analyzing Profits and Sales
  • Analyzing Receivables
  • Analyzing Debt
  • Analyzing Working Capital
  • How to measure share price on the basis of earnings?
  • How to analyze share price on the basis of growth?
  • Identifying corporate scams through Financial Statements


Need answers? Find them here

There are no prerequisites for the course. However, it would be helpful if you first watch ' “Why should you invest in stock market’' as it would help you understand the basics of investing.

It's slow and it's steady; buckle up, and get ready. This course falls under the Marathon category and can be completed in a duration of 2-3 hrs.

In the course, we have discussed financial statements, financial ratios in detail. Apart from this we have also discussed the different valuation techniques that investors should use to analyse the stocks.

Since the content of the course is pretty dynamic, we do not provide any certification for it. Trust us, you will definitely love it either-or. Moreover, we have a few very cool specialized courses that offer you Quest & BSE Institute-affiliated certifications. To know the details, please click here.

No, you do not need to install any specific software for this course. However, it is advised for a user to have an active Internet connection and an updated web browser for a seamless learning experience.

Finology provides you with an opportunity to access all its tools and courses by subscribing to Finology One. Hence, you can access this course as long as your subscription of Finology One is active.

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About Finology Quest

Quest is a 101 guide for anyone who wants to learn investing. The aim of these online finance courses is to make people financially literate and to make them understand the essential financial concepts and learn company analysis, so that one can know how to create & grow their wealth in the stock market.

Why choose Quest?

Quest will make you aware about investing and the secret to growing wealth. As against popular opinion, you do not always need to earn more money to be rich. In fact, financial awareness is the key to wealth creation & Quest will help you to make this journey simpler. The courses in Quest are easy to understand and explained using close-to-reality scenarios which makes learning fun and relatable. Plus, you can access it anytime and anywhere on the go, which is a cherry on the top!

For whom the Quest is?

Quest is for anybody who wants to enjoy learning finance and investing on the go. The aim of Quest is to make people financially aware. So, if you are someone making your babysteps into the markets, look no further. From personal finance to investing, Quest is your one-stop platform for almost everything finance!


The companies discussed on this website are solely for educational purposes and should not be construed as investment advice. We may or may not hold positions in any or all of these companies. However, these aren't recommendations and hence, we held no responsibility for any consequences of investment actions based on these videos.

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