This free course, Financial statement analysis and interpretation focuses on how the users of financial statements draw inferences about the financial position and performance of a reporting entity. To understand the information presented in financial statements, users need to carry out different types of analysis. They require past as well as future-oriented information to make forecasts and predictions about the future performance of a business entity. Although a company’s financial statements do not provide direct future-oriented information, in this course you will explore how the users can make use of financial statements (containing backward information) to obtain forward-looking predictive information. This course will introduce you to a variety of techniques that can be used to analyse financial statements.