Fundamental Analysis. Understanding Financial Statements

Best Financial Analyst course for a career in Capital Markets. A Conceptual course for Global students of stock market.

The Genesis

What you’ll learn

  • Importance of Fundamental Analysis in Capital Markets.
  • How to read, understand and Analyse Financial Statements?.
  • What to look for in Financial Statements and what to make out of it?.
  • How to identify value stocks for long term investment by analyzing the Financial Statements?.
  • How to evaluate the worth of a business or an investment in shares?.
  • The concept of Assets Liabilities and their balance.
  • Significance of Retained Earnings, Reserves and Surplus.
  • Significance of Debt Equity Ratio.
  • Working Capital and its Significance.
  • How to look at and what to look for in a Balance Sheet.
  • The Golden Rule of a Good Balance Sheet.
  • How to read and analyse a Balance Sheet.
  • How to read and analyse a Profit and Loss Statement.
  • Significance of Top Line and Bottom Line and the associated psychological aspect.
  • What is Cash Flow.
  • Significance of Cash Flow statement.
  • How to read and analyse a Cash Flow statement.
  • Significance of Ratio Analysis.
  • Understanding Face Value of a Share.
  • Understanding Book Value of a Share.
  • Understanding Market Price of a Share.
  • Understanding EPS.
  • Understanding PE Ratio.
  • Analysis of Debt Equity Ratio.
  • Understanding ROE.
  • Understanding PB ratio.

Course Content

  • Understanding the Balance Sheet –> 21 lectures • 3hr 54min.
  • Understanding the Profit and Loss Statement –> 5 lectures • 32min.
  • Understanding the Cash Flow Statement –> 8 lectures • 50min.
  • Ratio Analysis –> 11 lectures • 1hr 23min.
  • Add On Lessons –> 8 lectures • 47min.

Fundamental Analysis. Understanding Financial Statements


The Genesis

Fundamental Analysis and Technical Analysis are two divergent aspects of  Capital Markets. If you are looking at investing in Stock Market or Shares for a long term, then it is essential for you to conduct a Fundamental Analysis of the Stocks you intend to invest in. Fundamental analysis involves Industry Analysis, Company Analysis and Analysis of the Financial Statements. While Industry and Company Analysis are subjective and based on general reading material and business news, Analysis of Financial Statements is an Objective thing based on Facts and Figures ultimately culminating in Ratio Analysis based on which you make long term decisions.


The Void

While investors appreciate the necessity of reading, understanding and analysing the financial statements, most small time investors are not able to do so because they do not find a suitable instructor or a course which gives a logical and structured explanation in a simple understandable format. Financial statements at the face of it appear something complicated, which actually they are not. Explaining such financial jargons to non-finance people itself is an art and there is a clear void in this area.


Intent of this Course.

In this course hosted by PRUDENCE Engineering and Financial Consultants, Col (Dr) Shabbar Shahid, an Army Veteran and a post graduate in Engineering and Finance with a Doctorate in management explains how an investor or any person can read, understand and analyse the financial statements and do ratio analysis of any business to determine the financial health of that business. This would help not only in financial analysis of a business but also helps to identify good stocks for long term investment. The intent is to impart conceptual knowledge combined with practical applications.


Layout and Content

The course is spread over five sections containing over 45 lessons over a period of almost six and a half hours. Section 1 explains the Balance Sheet in detail. Section 2 explains the Income Statement also known as PnL statement. Section 3 explains the Cash Flow statement. Section 4 explains some Ratio Analysis and Section 5 is a space for add on lessons where the instructor tries to answer the questions from students through add on video lessons.


Prospective learners

This course is ideal for  people who are already in the Capital markets or intend making a career in the Capital markets. People who indulge in Value Investing and those who intend to invest in Stock market or are already investing but with limited knowledge inputs will find this course of immense value.

This course will help  finance professionals, accountants and also the students of finance, commerce and those pursuing or intending to pursue management courses in any subject to build their professional career on sound knowledge.

Students of other disciplines like science, engineering and humanities who are interested in managing their personal investments will also find this course very useful.

If you own a business or are an employee responsible for growth of your company or if you are planning to invest in any company and if you are not familiar with reading the financial statements, then this course shall be of great help to you. You must at least have a look at the preview.


This course in Not specific to Indian  Capital Markets or US stock market or indices like Nifty, Sensex, NASDAQ or Dow Jones but a conceptual course applicable to all Capital Markets / Stock Markets across the globe.


End Result and Key Takeaways

On completion of this course, the students will be able to read, understand and analyse the financial statements and do ratio analysis of any business from investment point of view.

Students will have a clear understanding of concepts like Assets, Liabilities, Retained earnings, Debt Equity, Current Assets, Current Liabilities, Working Capital, Top line-Bottom line, Revenue, Expenses, EBIT, Net profit, Cash flows from operating activities, Investment activities and Financing activities.

Difference between Face value- Book value and market value and various ratios like EPS, PE, Debt Equity and Current ratio have been explained from the basics in a simple manner which one does not find in books.

The contents of the 3 financial statements viz. the Balance sheet, the PnL or income statement and the Cash flow statement and their relevance have been explained threadbare in detail for any non finance person to understand easily. Figures for the past 5 years have been analysed to explain how one can determine the growth of a company or otherwise.

The real-life financial statements of a company have been used to explain the contents, refraining from any hypothetical examples.

It is an educational course to enhance your knowledge. The instructor knows the subject well and speaks to the point without any glamour, frills or divergence thus, respecting the value of time.

Legal Disclaimer:

This course is purely for educational purposes. Investment and trading in stock market involves financial risk. Students taking this course are advised to exercise due diligence before making any investment or trade in stock market. The instructor or any party related to this course or it’s content will not be responsible for any kind of loss to anyone in anyway, due to this course.