How to Analyze Financial Statements

Author: Miles Hutchinson

CPE Credit:  2 hours for CPAs

Have you ever wondered how they do it? How do those accountants see through the numbers so quickly, talking about trends, margins and ratios with the ease of coasting down a cool stream in a canoe with their favorite brew sliding through the water on a short leash? We can help.

Join us for an introduction to financial analysis and we will show you how they do it and how you can quickly become your own analyst.

Publication Date: May 2018

Topics Covered

  • Review Components of an Annual Report
  • Define Fundamental vs. Technical Analysis
  • Perform a Fundamental Analysis
  • Review a Financial Analysis Model
  • Perform a Technical Analysis
  • Sources of key competitive benchmarks
  • Produce the key liquidity, leverage and profitability ratios for the company

Learning Objectives

  • Recognize how to apply horizontal, vertical and ratio analysis to financial statements
  • Identify positive and negative trends and use the MD&A of the annual report to betterunderstand the reasons behind them from management's perspective
  • Describe various types of ratios
  • Calculate the days sales outstanding ratio
  • Differentiate statements regarding technical analysis
  • Identify components of an annual report
  • Calculate the P/E ratio


Instructional Method

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites

Advance Preparation

Registration Options
Regular Fee $55

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