Reading Financial Statements

Financial statements tell the story of a business in numbers. Learn what the three main statements show, how they connect and a few simple ratios that reveal whether a business is healthy.

  • Beginner
  • 50 minutes
  • 6 modules
  • Free
  • Certificate of completion
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What you'll learn

  • Explain what each of the three main financial statements shows
  • Read revenue, gross profit and net income on an income statement
  • Use a balance sheet to see what a business owns and owes
  • Explain why profit and cash aren't the same thing
  • Calculate gross margin, net margin and the current ratio

Course modules

  1. 1IntroductionThe story behind the numbers
  2. 2Core ConceptsThree statements and how they connect
  3. 3Practical ExampleNorthside Bikes
  4. 4Practice ActivityAnalyze a small business
  5. 5Knowledge QuizCheck your understanding
  6. 6Course CompletionCourse complete