Decoding Earnings Report
Reading through earnings reports is essential for a sound business decision. By the end of this course, you will be able to describe basic financial statements and analytical methods. Understand the key ratios and financial fillings, calculate various key performance indicators, and determine where to dig up information about a company.
Last Updated: Tuesday, December 20 2022
Course Details:
  • Category:Investing
  • Difficulty:Intermediate
Course details

Decoding Earnings Report

Reading through earnings reports is essential for a sound business decision. By the end of this course, you will be able to describe basic financial statements and analytical methods. Understand the key ratios and financial fillings, calculate various key performance indicators, and determine where to dig up information about a company.

Updated December, 2022 | 3 Modules | All Levels

Description

The earnings report is an official financial document to be released by all public companies. This course will help you learn how to apply different analytical methods to critical financial statements and understand how these methods help in making informed business decisions.

About Course

3 Modules

Downloadable Resources

Full lifetime access

Access on mobile and TV

Assignments

Certificate of completion

AUD
2000

Course content
  • 3 Modules

Expand all sections

This module states an earning report's importance, implications on the stock market, and how to read through these reports.

What has been covered

  • What is an earnings report, its importance and what implications on stock markets?
  • What are the different filling requirements
  • What is a reporting season and reasons investors wait for it
  • How to read through an earnings report
  • Explanation of different sections of earnings report such as:
    1. Financial statements reading – Income statement, Balance sheet, Cash flow statement.
    2. Press releases
    3. Management’s discussions and analysis of operations
    4. Qualitative and Quantitative disclosure
    5. Accuracy of information disclosed and legal proceedings

Intermediate

This module explains various components of an earnings report. Important metrics to look at within an earnings report and risk associated.

What has been covered

  • Key things to look at in an earnings report - Sales and Profit figures, Debt position, Ownership information, and Guidance
  • Overview of components of earnings reports such as Income statement, Balance sheet, Cash flow statement, and equity position.
  • How to calculate important financial and operating metrics
    1. Sales revenue/ net sales
    2. Gross profit
    3. EBITDA
    4. Net profit/ net income
    5. Earnings per share
    6. Cash flow
    7. Quick Ratio
    8. Current Ratio
    9. Debt to equity ratio
    10. Inventory turnover ratio
  • How to identify, analyse, evaluate, and monitor different financial risks.

Intermediate

This module covers different factors to analyse an earnings report.

What has been covered

  • What is an analyst estimate?
  • The effect of this estimate on the stock price
  • Factors leading to analyst estimates
  • What are the various forecasting techniques used, covering both qualitative and quantitative, to build financial models
  • What does company guidance mean?
  • How does this guidance affect investors' and analyst estimates
  • What all to look into the management discussions and analysis section (MD&A)
  • Importance of MD&A

Intermediate

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Frequently asked questions

Since it is a basic course, you do not need to do any preparation before beginning this course.

The course has 3 modules. 1st module explains earning reports, how to read them and why they are needed. The second module gives details about the components of an earnings report and important factors, as well as financial risks to look at within the report. The third module tells you what an analyst estimate is, the factors driving these estimates, and reading the company guidance and management discussion & analysis section of an annual report.

The course has been divided into different modules, each of which comprises relevant chapters on the subject, hence we recommend taking the course in the order presented.

The course is completely online. You can access your videos and readings anytime and anywhere via the web or mobile device.

This course will help you better understand an organisation's earnings reports, its components and key factors that should be looked at. The course will also help you link estimates given by analysts and how it affects stock movements, know about factors driving estimates and guide you in analysing a company's financial statements.

The course will help you assess a company's financial standing by evaluating its financial statements. You will be able to better understand and read an earnings report of a company after doing this course.

The course has an additional quiz and test section at the end. You can take that to evaluate your progress.