Introduction to Financial Analysis - The "Why?" from Coursera

In this course, you will learn the foundations important to developing and implementing a financially analytic mindset. This course introduces the foundations of financial analysis, beginning with the first question: what is financial analysis?

You will learn about the importance of adopting and applying a financial perspective. You will learn about accounting and finance principles and fundamentals. Accounting principles allow for the creation of consistent and reliable financial information. Key fundamentals of finance facilitate the use of a financially analytic mindset in different settings, including corporate and organizational, investment opportunities, and entrepreneurial settings.

Ultimately, from this course, you will take away a strong foundational understanding of financial analysis, on which you can build further knowledge and skills related to financial analysis of organizations and organizational decisions and scenarios.

What's inside

Syllabus

Course Introduction and Module 1: What is Financial Analysis?

In this module, you will be introduced to the agency problem, and how organizations mitigate it. You will also learn the goals of financial management, and be be introduced to three basic forms to organize a business based on the nature of the business and its financing needs. Examining the goal of financial business helps us to develop a concrete framework to evaluate a manager’s financial decisions. The corporation organization form is widespread because it can solve problems facing big business, but it also incurs the agency cost.

Module 2: A Financial Perspective - What and Why?

In this module, you will first learn about accounting and why it - as well as financial statements as a key component of accounting - is important to all types of organizations. You will then engage in an overview of key aspects of financial statements, including how they reflect an organization's position and performance. Finally, you will be introduced to accounting for transactions, which comprise the "building blocks" of financial statements. By the end of this module, you will have been introduced to key dimensions of accounting, and thus have created a foundation for a deeper dive into these concepts (presented in other related modules and courses).

Module 3: Finance Fundamentals

In this module, you will be introduced to the basic concepts about the time value of money: the present value, the future value, and the net present value. There are widespread applications of time value of money in our daily life and business valuation. Some examples include mortgage plan selection, pension plan choice, and investment decisions. And, of course, the time value of money affects organizational valuation and decision-making as well. You will then turn to different forms of financing, including debts (e.g., bonds) and equity (e.g., stocks). How a company finances its operations, strategy, and long-term investment has major implications for its valuation, as well as its success.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores the foundations of financial analysis, setting a strong grounding at the beginning

Presented through Gies College of Business, University of Illinois, a reputable institution in this field

Develops a strong foundation in financial analysis for advancing further in related knowledge and skills

Taught by Gies College of Business, University of Illinois, recognized for its work in business and finance

Covers core concepts in finance, including time value of money and different forms of financing

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Financial Analysis - The "Why?" with these activities:

Review accounting principles

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Review the basic concepts of accounting to strengthen your foundation for understanding financial analysis.

Browse courses on Accounting Principles

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Review key accounting concepts such as assets, liabilities, equity, revenue, and expenses.
Practice preparing simple financial statements, such as balance sheets and income statements.

Follow online tutorials on financial analysis

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Supplement your learning with additional resources to reinforce your understanding of financial analysis concepts.

Browse courses on Financial Analysis

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Search for online tutorials on financial analysis.
Select tutorials that cover specific topics you want to improve.
Follow the tutorials and complete any accompanying exercises.

Read Financial Intelligence by Karen Berman and Joe Knight

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Gain insights into financial analysis and decision-making from this comprehensive book.

View Financial Intelligence, Revised Edition: A... on Amazon

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Read through the chapters covering the basics of financial analysis.
Complete the exercises and case studies to test your understanding.

Four other activities

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Solve financial analysis problems

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Enhance your problem-solving skills and solidify your understanding of financial analysis concepts.

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Identify practice problems related to the course topics.
Solve the problems using the principles and techniques taught in the course.
Review your solutions to identify areas for improvement.

Participate in a peer study group

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Engage in discussions and problem-solving sessions with peers to enhance your understanding and retention.

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Form or join a study group with classmates interested in financial analysis.
Meet regularly to discuss course materials, solve problems together.
Share insights and perspectives to learn from each other.

Create a financial analysis case study

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Apply your understanding of financial analysis by creating a case study that evaluates a real-world financial situation.

Browse courses on Financial Analysis

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Select a company or organization to analyze.
Gather financial data from the company's financial statements.
Analyze the financial data using the techniques learned in the course.
Present your findings and recommendations in a written report.

Volunteer at a financial institution

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Gain hands-on experience in financial analysis by volunteering at an organization that requires financial analysis skills.

Browse courses on Financial Analysis

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Contact local financial institutions to inquire about volunteer opportunities.
Attend training provided by the organization.
Assist with financial analysis tasks under the guidance of experienced professionals.

Career center

Learners who complete Introduction to Financial Analysis - The "Why?" will develop knowledge and skills that may be useful to these careers:

Management Consultant

**Management Consultants** help businesses solve problems and improve their performance. They provide advice on strategy, operations, and finance. This course would provide a strong foundation for a career as a Management Consultant by providing an understanding of the principles of financial analysis, accounting, and finance.

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Business Analyst

**Business Analysts** help businesses improve their operations and performance. They analyze data, identify problems, and recommend solutions. This course would provide a strong foundation for a career as a Business Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

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Data Analyst

**Data Analysts** use data to solve problems and make decisions. They work in a variety of industries, including finance, healthcare, and retail. This course would provide a strong foundation for a career as a Data Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

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Financial Analyst

**Financial Analysts** study the financial health of companies and industries. They forecast future financial performance, evaluate risk, and make recommendations for investment and financial planning. This course would provide a strong foundation for a career as a Financial Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

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Actuary

**Actuaries** use mathematical and statistical techniques to assess risk and uncertainty. They work in a variety of industries, including insurance, finance, and healthcare. This course would provide a strong foundation for a career as an Actuary by providing an understanding of the principles of financial analysis, accounting, and finance.

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Investment Banker

**Investment Bankers** help companies raise capital through the issuance of debt or equity securities. They also advise companies on mergers and acquisitions and other financial transactions. This course would provide a strong foundation for a career as an Investment Banker by providing an understanding of the principles of financial analysis, accounting, and finance.

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Portfolio Manager

**Portfolio Managers** manage investment portfolios for individuals and institutions. They make investment decisions based on their analysis of financial data and market trends. This course would provide a strong foundation for a career as a Portfolio Manager by providing an understanding of the principles of financial analysis, accounting, and finance.

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Risk Manager

**Risk Managers** identify and assess risks to businesses. They develop and implement strategies to mitigate these risks. This course would provide a strong foundation for a career as a Risk Manager by providing an understanding of the principles of financial analysis, accounting, and finance.

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Financial Planner

**Financial Planners** help individuals and families manage their finances. They provide advice on budgeting, saving, investing, and retirement planning. This course would provide a strong foundation for a career as a Financial Planner by providing an understanding of the principles of financial analysis, accounting, and finance.

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Credit Analyst

**Credit Analysts** evaluate the creditworthiness of companies and individuals. They make recommendations on lending decisions and help manage risk. This course would provide a strong foundation for a career as a Credit Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

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Auditor

**Auditors** examine the financial statements of companies to ensure that they are accurate and reliable. They also provide advice on internal controls and risk management. This course would provide a strong foundation for a career as an Auditor by providing an understanding of the principles of financial analysis, accounting, and finance.

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Tax Accountant

**Tax Accountants** help individuals and businesses comply with tax laws. They prepare tax returns, advise on tax planning, and represent clients before tax authorities. This course would provide a strong foundation for a career as a Tax Accountant by providing an understanding of the principles of financial analysis, accounting, and finance.

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Forensic Accountant

**Forensic Accountants** investigate financial crimes and fraud. They provide expert testimony in court and help businesses prevent and detect financial fraud. This course would provide a strong foundation for a career as a Forensic Accountant by providing an understanding of the principles of financial analysis, accounting, and finance.

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Market Research Analyst

**Market Research Analysts** study market trends and consumer behavior. They provide insights to businesses on how to develop and market their products and services. This course would provide a strong foundation for a career as a Market Research Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

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Equity Research Analyst

**Equity Research Analysts** provide research and analysis on companies and industries for investment clients. They write reports and recommendations on stocks and other investment products. This course would provide a strong foundation for a career as an Equity Research Analyst by providing an understanding of the principles of financial analysis, accounting, and finance.

See salaries and explore the career path for Equity Research Analyst