Diagnosing the Financial Health of a Business

This course is offered through Open2Study — you can add it to your Accredible profile to organize your learning, find others learning the same thing and to showcase evidence of your learning on your CV with Accredible's export features.


Course Date: 11 August 2014 to 09 September 2014

Price: free

Course Summary

This course shows how financial reports provide a wealth of information into the performance of a business, and how they can be used specifically to identify early warning signs of potential future problems. We will see that a profitable business may not necessarily be performing well or taking the right steps to build for its future. Just as a doctor conducts a diagnosis of a patient and recommends a course of treatment, we will use simple and yet powerful tools to analyse a business and identify where and how things can be improved.

Course Instructors

Guy Ford

Guy Ford is an associate professor in finance at the Macquarie Graduate School of Management. Guy is also the Deputy Dean and Director of Programs at the School. Guy teaches in the areas of corporate finance, accounting for management, corporate acquisitions and strategic finance. Guy also delivers customised executive education and open enrolment programs in finance and accounting at the School.

Course Description

What's it about?

This course shows how financial reports provide a wealth of information into the performance of a business, and how they can be used specifically to identify early warning signs of potential future problems.

This course shows how financial reports provide a wealth of information into the performance of a business, and how they can be used specifically to identify early warning signs of potential future problems.

We will see that a profitable business may not necessarily be performing well or taking the right steps to build for its future. Just as a doctor conducts a diagnosis of a patient and recommends a course of treatment, we will use simple and yet powerful tools to analyse a business and identify where and how things can be improved.

What's involved?

Module 1The Balance Sheet
10 videos, 9 quizzes, 1 assessment11 Aug - 17 Aug
Module 2Income Statement
10 videos, 9 quizzes, 1 assessment18 Aug - 24 Aug
Module 3Statement of Cash Flows
10 videos, 9 quizzes, 1 assessment25 Aug - 31 Aug
Module 4Assessing Financial Performance
10 videos, 9 quizzes, 1 assessment1 Sep - 7 Sep

What will I learn?

  • How to evaluate the performance of a business with reference to its financial reports.
  • How to conduct financial analysis by integrating information across its balance sheet, income statement and cash flow statement (as opposed to viewing data in isolation).
  • How to identify early warning signs of potential financial difficulties in a business and thus be forward-looking in your approach.
  • How to assess risks in a business by reference to its financial reports.
  • How to identify the assumptions and estimates that are made by managers in constructing their financial reports and assess the implications for interpreting the performance of a business.
  • How to measure and interpret the sustainable growth rate of a business and identify implications for its future heath.
  • How to distinguish between the income statement and the statement of comprehensive income of a business.
  • How to measure the operating cash cycle of a business and assess the implications for the funding needs of the business.
  • How to determine if a firm is generating appropriate returns on its assets and for its owners.

This course requires approximately 2 - 4 hours of study per week, but can vary depending on the student. This includes watching videos, and taking quizzes and assessments. The total video time for this course is 4 Hours 15 minutes.

If you pass this course you'll receive a Certificate of Achievement. While this certificate isn't a formal qualification or credit, you can use it to demonstrate your interest in learning about this area to potential employers or educational institutions.

Where to from here?

If you love this course, why not take your studies further? Here are some accredited qualifications that could help you achieve your goals.

Where could this lead me?

If you're wondering what your future could look like in this area, here are some potential careers you could head towards.

  • Management
  • Finance
  • Accounting
  • Investment analysis

Review course:

Please sign in to review this course.

Similar Courses


{{ course.name }} {{ course.name }}

{{ course.name}}

{{course.start_date | date:'MMM d'}} — {{ course.end_date | date:'MMM d'}}   ({{ course.time_until_course_starts }} ,   length: {{ course.length_in_weeks }} weeks) Self-paced — no deadlines    
${{ course.price }} p/mfree
TO-LEARN
TO-LEARN
ADDED!

REMOVE
FROM
LIST
ON PROFILE

Course Activity & Community

Be the first Accredible user to join this course!





uploaded {{ feed_item.model.caption || feed_item.model.url || feed_item.model.file_file_name }} for the course {{ feed_item.course.name }} — {{ feed_item.time_ago }}

{{ comment.user.name }} {{ comment.text | truncate: (comment.length || comment_display_length) }}   read more hide

{{ comment.time_ago }}

started the course {{ feed_item.course.name }} — {{ feed_item.time_ago }}
followed {{ feed_item.model.name }} — {{ feed_item.time_ago }}
followed thier friend {{ feed_item.model.name }} — {{ feed_item.time_ago }}
{{ feed_item.model.text }} (on the course {{ feed_item.course.name }}) — {{ feed_item.time_ago }}

{{ comment.user.name }} {{ comment.text | truncate: (comment.length || comment_display_length) }}   read more hide

{{ comment.time_ago }}