In this course, you will learn how to interpret your financial statements to help you with your decision-making processes. You will be introduced to the three financial statements – the balance sheet, the income statement and the cash flow statement, as well as notes to these statements. You will learn how to calculate and interpret critical ratios – including inventory turnover, asset management, liquidity and profitability, which knowledge will help you monitor and improve your organization’s financial performance.

Learning Objectives

  1. Explain how to interpret financial statements.
  2. Identify and define financial statement components, including assets, liabilities, owner’s equity, etc.
  3. Demonstrate how to interpret documents using common size financial statements and ratio analysis.
  4. Calculate ratios on liquidity, profitability, capital structure, asset management, cash cycle and performance.

Topics Covered

  • Balance sheets, income statements, cash flow statements, notes to financial statements 
  • Common size financial statements 
  • Ratio analysis
  • Liquidity, profitability, capital structure, asset management, cash cycle and performance 
  • Calculations including return on sales, return on assets return on equity, debt to equity ratio, times interest earned, asset turnover, average collection period, average credit period, inventory turnover, days in inventory, earnings per share and price earnings ratio

Instructor

Arun K. Mathur, FCPA, FCA, LPA

Founder and Lead Instructor, UltimQuest Knowledge Inc.

Arun is Partner at Gerald Duthie & Co. LLP, where he provides professional services to a diverse group of clients. Arun is also Owner and Lead Instructor at UltimQuest Knowledge Inc. He has been delivering corporate training on improving governance, ethics, internal control, performance measurement and related topics. He provides live and online training through CPA bodies across Canada and Bermuda. Arun served for several years on the Board for HealthForce Ontario Marketing and Recruitment Agency, and was also Chair of the Finance and Audit Committee there and for the Trillium Gift of Life Network. He has served on the CMA Ontario's Review Committee prior to the merger.