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Analyzing Financial Statements in Python

Learn to analyze financial statements using Python. Compute ratios, assess financial health, handle missing values, and present your analysis.

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4 Hours13 Videos47 Exercises
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Course Description

Use Python to Analyze Financial Statements

Balance sheets, income statements, and cash flow statements are financial statements nearly every major company uses. These statements contain a plethora of information about a company's financial position. This four-hour course will lay the groundwork to analyze financial statements in Python and understand a company's financial position in-depth.

Compute Essential Ratios from Financial Statements

You’ll begin by learning how to read financial statements—the first step in learning how to analyze them. Next, you'll practice computing some of the most common financial ratios from the statements using pandas - a powerful Python data manipulation and analysis tool. You'll also learn how to use different functionalities of pandas to compare the financial ratios of companies and assess their financial health.

Learn How to Deal With Real-World Financial Data

'Data in the wild' is riddled with missing values. In this course, you'll practice dealing with missing financial information through interactive exercises. You’ll also learn how to present your analysis using data visualization—another essential skill in financial analysis.

Reduce Repetitive Work with User-Defined Functions

One of the great things about using Python for analyzing financial statements compared to standard spreadsheets is that you can reduce repetitive work. By writing your own functions in Python, you’ll learn to make your analysis faster and more efficient by reducing repetition.
  1. 1

    The Balance Sheet

    Free

    In this chapter, you will learn how to read and interpret a balance sheet and compute and use financial ratios to evaluate a company's performance using information from the balance sheet. Additionally, you'll gain hands-on experience using the powerful pandas data manipulation package to analyze a company's financial ratios and compare them to its peers in the industry.

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    Introduction to the balance sheet
    50 xp
    Match balance sheet items to their class
    100 xp
    Relation of assets, liabilities, and shareholders' equity
    100 xp
    Practice using the main equation of accounting
    100 xp
    Financial ratios from the balance sheet
    50 xp
    Match the ratio to its family
    100 xp
    Compute the current ratio
    100 xp
    Leverage ratios
    100 xp
    Computing financial ratios using pandas
    50 xp
    Compute current and debt-to-equity ratios
    100 xp
    Compute relative difference by industry
    100 xp
    Compute ratios by industry
    100 xp
  2. 2

    The Income Statement

    In this chapter, you'll learn how to read and interpret an income statement, calculate key financial ratios, and even create your own functions in Python to automate repetitive tasks. You'll also gain experience using seaborn, a powerful data visualization library, to produce figures to help you understand a company's financial performance.

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  3. 3

    The Cash Flow Statement

    In this chapter, you’ll analyze the cash flow statement and use its information to compute and interpret financial ratios. Using Seaborn to create informative plots that compare financial ratios across different companies, you'll build on your existing knowledge of Python and data visualization. By the end of this chapter, you'll have the skills to extract insights from cash flow statements using Python and handle messy, real-world data sets with missing data.

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Datasets

Balance sheetCash flowsCash flow tech (json)Income statement

Collaborators

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Izzy Weber
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Iason Prassides
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Maham Khan
Rohan Chatterjee HeadshotRohan Chatterjee

Risk Modeler

Rohan is a risk modeler at Rabobank in the Netherlands. He has a passion for teaching and has taught as a student assistant at Tilburg University for almost three years. He is very interested in finance and likes to stay updated with the latest developments in the financial world! In his free time, he likes to play the guitar, go to the gym and spend time with his friends and family.
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