Financial Statement Analysis: Measuring & Interpreting Business Performance

The purpose of this course is to help a business professional understand the financial accounting process and to develop skills necessary to evaluate an enterprise’s financial position and it’s operating, investing, and financing activities. The first part of the course emphasizes the measurement concepts and the mechanics of moving from business transactions to the principal financial statements: Balance Sheet, Income Statement and Statement of Cash Flows. The second part introduces tools for analyzing financial statements, with an emphasis on integrating industry economic and business strategic
factors into the analysis and interpretations.

Key Frameworks include:

– Measuring Financial Position: Balance Sheet
– Measuring Operating Performance: Income Statement
– Measuring Cash Flows
– Financial Statement Analysis
– Pro-Forma Financial Statements (Budgeting, Sensitivity)

Duration and Course Fee

  • 29 May 2019
  • 2 Months
  • 2 - 4 hours per week
  • Course Fees USD 1200


Daniel Wolfenzon

Stefan H. Robock Professor of Finance and Economics

Course Highlights

  • 38Interactive Lectures
  • 2Case Studies
  • 3Real World Applications
  • 1Final Exam
  • 7Discussions



a) Pre – reads : Overview & Balance Sheet



a) Balance Sheet Basics

b) Measurement & Recognition of Assets and Liabilities

c) Recognition Principles

d) Shareholder Equity – Types

e) Double Entry Book Keeping – Overview


a) Problem Set: Balance Sheet for Small Beginnings Corporation


a) Pre – reads on Income Statement


a) Income Statement Basics

b) Cash versus Accrual Basis in Accounting

c) Revenue Recognition and Expense Measurement

d) Relation between Income Statement & Balance Sheet

e) Accounting Process

f) Comprehensive Example with Closing Entries: General Enterprises


a) Problem Set: Balance Sheet for Up-and-Running Corporation


a) Pre-reads on Statement of Cash Flows


a) Statement of Cash Flow Basics

b) Informational Value of the Statement of Cash Flow

c) Relationship Between the Three Financial Statements

d) Preparing a Statement of Cash Flow

e) Comprehensive Example: Preparation of Statement of Cash Flow

– First Step Company

– Salene

f) Analysis of Statement of Cash Flow


a) Problem Set: Statement of Cash Flow for Aston Corporation


a) Pre-reads on Financial Statement Analysis


a) Financial Statement Analysis Basics

b) Return on Assets, Return on Equity

c) Role of Financial Leverage

d) Key Risk Ratios

e) Key Risk Ratios


a) Prepare Case: Wal-Mart Profitability & Risk

b) Discussion: Wal-Mart Profitability & Risk


a) Pre-reads on Pro Forma Financial Statements


a) Projection: Revenues & Expenses

b) Projection: Asset Structure & Capital Structure

c) Projection: Expenses, Cash Balance, and Cash Flow

d) Pro Forma Analysis

e) Budgets and Performance Targets


a) Prepare Case: Wal-Mart Pro Forma Financial Statements

a) Final Examination


Intellectual Capital

Intellectual Capital

  • Global Business Education
  • Rigorous and experiential curriculum
  • World-renowned faculty
  • Globally Connected Classroom: Peer to Peer Learning Circles
  • Action Learning: Learning by Doing


Brand Capital

  • Certificate from EMERITUS in collaboration with Tuck School of Business At Dartmouth


Social Capital

  • Build new networks through peer interaction
  • Benefit from diverse class profiles


Career Capital

  • Professional Acceleration through our enriched leadership toolkit
  • Learn while you earn
  • Get noticed. Get ahead.

Duration and Course Fee

  • 2 Months
  • 2 – 4 hours per week
  • Course Fees USD 1200

Phillip C. Stocken
Professor of Accounting

Duration and Course Fee

  • 2 Months
  • 2 - 4 hours per week
  • Course Fees USD 1200


Phillip C. Stocken

Professor of Accounting

Other Programs

Global Ivy Emeritus Institute of Management