How to read a Balance Sheet


When retail investors think about analysing any company fundamentally, they often go for the ratio analysis of the company and start looking at its ROE, ROCE, Debt-to-Equity, Current Ratio, etc. But before analysing🔎 these ratios, reading financial statements is important because all the ratios are derived from financial statements🧾.

3 Modules

35 mins


Course Outline

What will you learn?

  • Introduction to Components of Balance Sheet.
  • Balance Sheet Analysis: Eicher Motors.
  • Ratio Analysis using Balance Sheet: Eicher Motors.

About Course

We have divided this course into 3 segments:

In segment 1, Pranjal Kamra explained the components of the balance sheet; moving on the segment 2, Kirti Pimpalgaonkar explained Eicher Motors' balance sheet, and segment 3, is explained by Tejas Khandelwal about ratio analysis using the balance sheet.

In this course, we are bringing you a detailed analysis of the balance sheet, one of the three financial statements. This course highlights all the important aspects of the balance sheet. You will learn how to identify and understand the significance of current assets, current liabilities, non-current assets, non-current liabilities, and shareholder's equity.

By proficiently dissecting balance sheets, you will be empowered to extract valuable insights about a company's financial health. Upon completing this course, you will be equipped with the knowledge and skills necessary to analyse a balance sheet effectively. By honing your ability to analyse financial statements, you will be able to make more informed investment decisions and confidently navigate the world of fundamental analysis.

What you will get?





Course Syllabus

  • Explaining Assets, Liabilities and Equity.
  • Reading Balance Sheet of Eicher Motors
  • Analysing Ratios of Eicher Motors using the Balance Sheet


Need answers? Find them here

There are no prerequisites for the course. However, it would be helpful if you first go through "Qualitative Analysis" as it would help you understand the quality of the business.

Quick, quicker, quickest! This course falls under the sprint category and can be completed in 35 mins duration.

In this course, you will get an idea about Balance Sheet analysis and why analysing the Balance Sheet is important before you look at any fundamental ratios.

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 to Finology One is active.

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