This course identifies common issues that should be considered when analyzing financial statements using financial ratios.
Financial statements must be analyzed in order to fully understand the data presented. This course identifies common issues that should be considered when analyzing financial statements using financial ratios. Topics include: • Inherent limitations of financial ratio analysis. • Trends to consider to determine earnings quality, including the relationships between earnings, receivables, inventory, and cash flow. • The impact of changes in accounting principles and estimates and the impact of accounting errors. • Impact of foreign currency fluctuations from translating statements and from specific foreign exchange transactions. • A short case study of a NYSE traded company that issued fraudulent financial statements that were undetected even though there was limited correlation between earnings and cash flow.
The course content covers Financial Statement Analysis topics tested in the Certified Management Accountant (CMA) Part 2 examination as outlined by the CMA Part 2 exam content specification outline.
Topics include: • Limitations of ratio analysis • Earnings quality • Impact of changes in accounting treatments • Impact of foreign currency fluctuations
Field of Study: Accounting
Managing Director of CPE University, LLC
Tom Coghlan, CMA, MBA has worked at the intersection of accounting, information technology and decision making for over 30 years. His diverse set of experiences and roles include serving as: Founder of CPE University, LLC, a provider of online and in-person CPE programs in operational analysis, managerial accounting, decision making, and ethics. He is one of the top CMA exam review instructors in North America, and has helped hundreds of people prepare to take the CMA examination Founder of Appitur® Co., the developer of a mobile platform that provides exam prep companies with a branded app/web solution for their students to access study materials Business Fellow and Instructor at Villanova University, where he taught graduate and undergraduate courses in Accounting and Analytics, and was the Director of the Center for Business Analytics CFO and Director of Information Technology for a multi-national business unit of Imperial Chemical Industries Partner and Vice President of Client Services for FirstQuarter, Inc., where he led projects that helped clients including Cordis (division of Johnson & Johnson), Del Monte Foods, Alcon, Analog Devices, and Stantec maximize their technology investments Tom earned a BS degree in Business Administration from Drexel University, and an MBA from LaSalle University. Tom is a Certified Managerial Accountant (CMA), and passed the Certified Public Accounting (CPA) exam in Pennsylvania.
