RS 201 · Level 200 · Intermediate

Financial Statement Analysis

Name: RS 201 Financial Statement Analysis
Author: Elizabeta Dimoska

This course teaches a learner to read, connect and question the three financial statements of any public company. This free course by Elizabeta Dimoska runs to ten modules and about 20 study hours.

A printed page of financial tables from an annual financial report

Photo: Franklin County (Ohio) County Auditor's Office, Public domain, via Wikimedia Commons (cropped).

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What you'll be able to do

Find and navigate an annual report.
Explain every major line on the balance sheet, income statement and cash flow statement.
Trace one transaction through all three statements.
Calculate and interpret 15 core ratios.
Spot the common warning signs of low-quality earnings.

Before you startPrerequisite: Advanced (Course 3). Tools used: SEDAR+ and EDGAR filings, the RiskStock Market page, a spreadsheet.

How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 20 study hours in all: short, dense lessons (about 64 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

The language of business and where to find it Core

Name the main filings, explain accrual accounting, and tell IFRS from US GAAP.

~8 min read · ~2 hr with practice

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The balance sheet Core

Apply the accounting equation and explain each major asset, liability and equity line.

~7 min read · ~2 hr with practice

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The income statement Core

Read an income statement from revenue to earnings per share and separate recurring from non-recurring items.

~6 min read · ~2 hr with practice

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Revenue recognition and accruals Core

Apply the five-step revenue model and explain how accruals move profit between periods.

~6 min read · ~2 hr with practice

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The cash flow statement Core

Build operating cash flow by the indirect method and calculate free cash flow.

~6 min read · ~2 hr with practice

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Linking the three statements Advanced

Trace any transaction through all three statements and keep the balance sheet in balance.

~6 min read · ~2 hr with practice

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Assets in depth Advanced

Explain inventory costing, depreciation, impairment, goodwill and lease accounting, and how each choice changes reported profit.

~6 min read · ~2 hr with practice

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Liabilities and equity in depth Advanced

Read the debt note, understand deferred taxes and stock-based compensation, and follow share count changes.

~6 min read · ~2 hr with practice

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Ratio analysis Advanced

Calculate and interpret liquidity, solvency, profitability and efficiency ratios, and decompose return on equity.

~7 min read · ~2 hr with practice

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Quality of earnings and red flags Advanced

Judge whether reported profit is trustworthy and name the standard warning signs.

~6 min read · ~2 hr with practice

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After the modulesThe capstone project → When you're readyFinal exam & certificate →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 201 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is Advanced (Course 3). The 200-level courses can be taken in any order once the prerequisite is done.

How long does it take?

About 20 study hours. The reading itself is short and dense, about 64 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Is the certificate a professional qualification?

No. It is a certificate of completion from a free educational course. It is not a licence, an accreditation or a professional designation.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.