Unit 05: Financial Analysis - MMBazel/Springboard-DataAnalyticsTrack-Mentor GitHub Wiki
Overview
Financial Analysis Learning Objectives
In this unit, you’ll:
Develop an understanding of the basics of financial analysis. Become fluent in financial terminologies such as revenue, cost of goods sold, earnings before interest, assets, liabilities, and profitability. Apply financial concepts to analyze data and transform your analysis into insights. Work to Submit
In this unit, you’ll:
Work on a case study in which you’ll ‘help’ Southern Water Corp:
Create a problem statement
Create value driver trees
Complete revenue analysis
Total operational expenses
Complete EBIT calculations
Create a PowerPoint presentation to present visualized data
Financial analysis is the application of analytical techniques to understand the underlying health of a business. As a business-oriented data analyst, not only will you need to analyze data, but you’ll also need to demonstrate the connection between business terminologies and associated analysis. For example, it isn’t quite enough to say sales revenues are heading upwards — you also need to understand the key value drivers that have caused this increase in revenues.
This unit explores the basics of financial analysis to help you become fluent in business terminology. You’ll learn about revenue, cost of goods sold, earnings before interest, assets, liabilities, and profitability. Each of these core terms will become powerful tools you’ll use to analyze data and turn your analyses into actionable insights. To help you practice using these new tools, you’ll apply everything you learn in this unit by working on another case study.
Unit Plan :
Outcomes:
Goal:
Deliverables:
Additional Resources Used:
Tutorials:
Classes:
Texts
Web Classes:
Interesting Reads:
- Statistical Writing, Presentation & Communication
5.1 - Introduction to Financial Analysis
This subunit explores the tell-tale signs you can look for to determine whether or not a business is performing well. You’ll learn a variety of new terms, so we recommend taking notes that you can refer back to later.
You’ll end this subunit with a quiz designed to test your budding financial vocabulary!
1Video: Financial Analysis
Watch video
Students typically spend 2 - 4 Minutes
In this video, Chris discusses financial analysis and touches on some of the most important topics you'll cover in this unit.
2Video: HDEIP Framework: Exploration Students typically spend 2 - 4 Minutes
You're now moving into the next phase of the HDEIP framework: exploration. This phase includes many different kinds of analysis — including financial, statistical, and economic analysis, all of which are covered in this course! Let's dive in.
3Video: Everything You Need to Know About Finance and Investing in Under an Hour Students typically spend 10 - 15 Minutes https://www.youtube.com/watch?v=WEDIj9JBTC8
Please note that you only have to watch the first 9 minutes and 10 seconds of this video.
Revenue? Balance Sheets? Cash Flow Statements? Income Statements? Bonds? Investments? Wondering how all these terms are related to financial analysis? Dive into this resource from Bill Ackerman, Pershing Square Capital Management CEO and Active Hedge Fund Manager.
We recognize that this a vocabulary-packed video. You’ll find a series of flashcards you can use to memorize these terms in the fifth resource in this subunit.
4Video: Debits & Credits Explained Students typically spend 5 - 10 Minutes https://www.youtube.com/watch?v=VhwZ9t2b3Zk
When performing financial analysis, it’s important to remember this rule: credits and debits must equal each other and cancel out to zero. Not quite sure what this means? This video provides an in-depth explanation.
5Article: A Closer Look at Debits & Credits
Read article
Students typically spend 10 - 15 Minutes
https://www.accountingtools.com/articles/2017/5/17/debits-and-credits
Curious how debit and credit applies to both personal and corporate finances? This resource has all the answers. Let’s dive in!
6Link: Financial Analysis Glossary
Open link
Students typically spend 10 - 20 Minutes
https://quizlet.com/416477818/learn
Glossary of Terms
Test your knowledge of all of the vocabulary words you’ve learned in this subunit by taking this quiz!
Hint: if you’d like to recap the terms you’ve learned before taking this quiz, use this glossary we've put together.
5.2 - Case Study: Overview and Problem Statement
Welcome to the Southern Water Corp case study! You'll work on different pieces of this case study throughout the next few units. In this subunit, you'll find an overview of the case study as well as your first assignment.
1PDF: Southern Water Corp Case Study Overview (4 pages)
View PDF ( 1 MB )
Open in new tab
Students typically spend 5 - 10 Minutes
For the first part of this case study, you'll join the Financial Business Unit (FBU) of Southern Water Corp as a business analyst. Please review the case study overview linked here before you dive in.
2Project: Create a Problem Statement for Southern Water Corp Students typically spend 1 - 2 Hours
Your first task for Southern Water Corp is to complete a Problem Statement Worksheet that includes the following:
A succinct detailing of the problems Southern Water Corp is facing in the form of a SMART problem statement The context for the problem Criteria for success The scope of the solution space (Hint: Is this for a specific period?) Constraints within the solution space (Hint: Are there any constraints which will prevent successful delivery of this piece of work?) Stakeholders involved (Hint: Who will be involved in performing/consuming this piece of work?) Data sources required To view the rubric for this project, click here.
To submit your problem statement:
Title your problem statement "Southern Water Problem Statement [Your Name]" Add your problem statement to your OneDrive folder Make sure that you've changed your OneDrive settings so that your mentor can view the items in your OneDrive Submit a link to your OneDrive here Discuss your problem statement with your mentor during your next call. Feel free to iterate upon your work and resubmit it after your discussion with your mentor.
Need a refresher on what a well-crafted problem statement worksheet looks like? Check out this problem statement exemplar (which you saw earlier in the course.)
5.3 - Cashflow and Revenue
"Cashflow is king,” or so legendary investors Warren Buffet and Charlie Munger, the billionaire co-leads of Berkshire Hathaway, a $500B market cap corporation, seen to think.
Cashflow is the lifeblood of any business. Cash inflows that are less than your cash outflows on an ongoing basis lead to negative cash flow, which will directly harm the operational health of any business. This subunit explores the topic of cash flows and why they matter, as well as how they differ from revenues, probability, and income.
1Video: What Is Cashflow? Students typically spend 3 - 5 Minutes https://www.youtube.com/watch?v=hISdzmjNO5w
It’s time to learn about what some people refer to as the ‘heartbeat of business’ — cash flow. This resource from Investopedia will teach you all about what cash flow is and why it’s so important.
2Article: Cash Flow—It’s Not the Bottom Line
Read article
Students typically spend 15 - 30 Minutes
https://hbr.org/1984/07/cash-flow-its-not-the-bottom-line
So, cash flow can be positive when your cash inflows are greater than your outflows. This resource builds off of this logic and explores whether or not cash flow can be used to identify when a business is in crisis. Despite the date that it was published (1984!), this Harvard Business Review article remains one of the most referenced cash flow articles in the business world.
3Article: What is Revenue?
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Students typically spend 10 - 15 Minutes
https://www.investopedia.com/terms/r/revenue.asp
Revenue is a term used to describe the income a company generates before any expenses are subtracted from the calculation. You’ve likely heard the question, “how much revenue have we earned this quarter?” if you’ve worked at a company for any length of time. With the help of this article from Investopedia, you’ll learn all about revenue and how it relates to the growth and health of a business.
4Article: Revenue vs. Cashflow - The Facts
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Students typically spend 5 - 15 Minutes
https://www.invoiceberry.com/blog/revenue-vs-cash-flow-facts/
In this subunit, you’ve learned about cash flow and revenue. Using this resource, you’ll continue to learn about revenue with a specific emphasis on how it differs from cash flow.
5Article: Revenue vs. Profit
Read article
Students typically spend 10 - 15 Minutes
https://www.investopedia.com/ask/answers/122214/what-difference-between-revenue-and-profit.asp
In addition to cash flow and revenues, there’s another term you need to become acquainted with: profit. In this article, you’ll read through a description of what profit is, as well as how it measures up when compared with revenue.
6Article: Revenue vs. Income
Read article
Students typically spend 5 - 10 Minutes
https://www.investopedia.com/ask/answers/122214/what-difference-between-revenue-and-income.asp
Cool, so here’s what you’ve learned so far: cash flow is different from revenue, which is again separate from profit. But what about income? This article will teach you all about income and how it relates to the terms you’ve learned, as well as how it differs from them.
7Article: Understanding the Difference Between Revenue, Profit, and Cash Flow
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Students typically spend 5 - 15 Minutes
https://blog.capterra.com/understanding-the-difference-between-revenue-profit-and-cash-flow/
This detailed article takes a closer look at the ways that revenue, cash flow, and profit all relate to one another, while also unpacking how each concept stands alone.
8Link: Cashflow and Revenue Glossary
Open link
Students typically spend 10 - 20 Minutes
https://quizlet.com/416478910/learn
You’ve learned quite a few financial terms recently — take this quiz to make sure you're comfortable with all of these terms.
Use this glossary as a reference both while working on this quiz and throughout the rest of this course.
5.3 - Case Study: Revenue
For the next phase of the Southern Water Corp case study, you'll analyze the financial records from July 2013 to June 2014. Using the skills you've learned thus far, you'll create a value driver tree that highlights how revenue is calculated for Southern Water Corp and use Excel to run a revenue analysis.
1Project: Create a Revenue-Focused Value Driver Tree Students typically spend 1 - 2 Hours
Case Study Steps
Please review the case study overview before you begin. Complete a value driver tree using the template you worked with earlier to calculate revenue showing the relevant cost centers and cost elements that make up revenue. To view the rubric for this project, click here. Submit Your Work
Title your value driver tree "SW Revenues VDT [Your Name] Upload your value driver tree to your OneDrive Submit your value driver tree here and discuss it with your mentor during your next call
SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
2Project: Analyze Southern Water Corp's Revenues Students typically spend 2 - 4 Hours
Ready to get some hands-on practice performing financial analysis?
Project Steps
Download the SW Corp Worksheet. Review the Definitions Tab to familiarize yourself with the terms that you will use in the following tasks. Complete all cells that are highlighted gold. Navigate to the Cost Center (CC) Actuals Tab. Complete all three questions highlighted in gold. Navigate to the Financial Actuals Tab. Complete Q1 - the revenue calculation using the value driver tree you created in the previous assignment to complete the revenue calculations from July-13 to June-14. Complete all gold highlighted rows. Navigate to the Variance Analysis Tab. Calculate the variance between the actuals revenue (July-13 to June-14) against the budget revenues (July-13 to June-14). Complete all gold highlight rows. Submit your spreadsheet here and discuss it with your mentor during your next call. Here are some references you might find handy as you work on this case study. You've seen them as you've worked through the course: Stacked Column Charts and Waterfall Charts Stacked Column Charts Waterfall Charts
SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
3Link: PowerPoint Template
Open link
Students typically spend 2 - 4 Minutes
For this next part of your case study work, you'll be asked to create a PowerPoint slide deck that reflects the work that you've done. Please download this template, open it in Microsoft Excel, and use it while working on the next Southern Water Corp submission.
4Project: Create Slides of Your Findings Students typically spend 1 - 2 Hours
You've just finished analyzing Southern Water Corp's records. The next step is to create two PowerPoint slides expressing your findings. Download this template and open it in OneDrive to get started and include the following:
Show the actuals revenue vs the budget revenue on an individual desalination unit basis as well as an overall basis Show the variance on a monthly-basis via either a waterfall chart or any other chart you feel would be able to reflect the variances effectively You can view the rubric for this slide deck here.
Submit Your Work
Title your PowerPoint "SW VDT Slides [Your Name]" Hyperlink the spreadsheet you worked on in this subunit in your PowerPoint Submit your PowerPoint (which should contain a hyperlink to your spreadsheet) here and discuss both with your mentor during your next call SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
5.5 - Operational Expenses (Costs)
Operational expenses are a crucial aspect of the business operations equation. When you learned about cash flows and revenues, you were introduced to the concepts of positive and negative cash flows. This subunit dives into one of the key drivers of cash flows — operating expenses. You’ll learn all about what they are, the types of expenses businesses face, how you can think about operational expenses strategically, and how operational expenses and the cost of goods sold connect.
As with the previous subunits, once you’ve worked through the resources in this subunit, you’ll apply what you’ve learned to the Southern Water Corp case study by helping management understand the operational expenses and the company’s production costs.
1Video: What is an Operating Expense? Students typically spend 2 - 4 Minutes https://www.investopedia.com/terms/o/operating_expense.asp
In the last subunit, you explored the revenue side of the financial equation. In this resource, you’ll take a look at the cost side of the equation and unpack the question, “what is an operating expense?”
2Article: An Overview of Operating Costs
Read article
Students typically spend 10 - 15 Minutes
https://www.investopedia.com/terms/o/operating-cost.asp
Let’s take a closer look at operational expenses and how they affect business with the help of this nuanced article from Investopedia.
3Video: Cost in Business Operations Students typically spend 10 - 20 Minutes https://www.youtube.com/watch?v=L7KhB6_c2q0
You’ve now learned about the fundamental characteristics of operational expenses, so it’s time to shift gears a bit and think about operational expenses from a strategic perspective.
4Article: 5 Ways CFOs Can Make Cost Cuts Stick
Read article
Students typically spend 20 - 30 Minutes
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-ways-cfos-can-make-cost-cuts-stick
The poor management of operational expenses can result in businesses facing negative cash flow and may eventually lead to bankruptcy. This resource will teach you how to manage operational costs strategically.
5Article: How to Cut Costs Strategically
Read article
Students typically spend 5 - 10 Minutes
https://hbr.org/2017/03/how-to-cut-costs-more-strategically
This post from the Harvard Business review examines the ways that a business can cut costs strategically.
6Video: Different Ways to Cut Costs Students typically spend 10 - 20 Minutes https://www.youtube.com/watch?v=f8w_aXu2izI
Building off of your understanding of operational expenses and how a business might strategically address costs, this talk from one of the managing partners at Booz Allen Hamilton explores the ways that businesses can strategically cut operational expenses.
7Video: What Are Costs of Goods Sold? Students typically spend 2 - 4 Minutes https://www.investopedia.com/terms/c/cogs.asp
COGS stands for the Cost of Goods Sold. This brief and informative video describes this concept and explores how COGS relate to operational expenses.
8Article: How Operating Expenses Differ from COGS
Read article
Students typically spend 5 - 15 Minutes
https://www.investopedia.com/ask/answers/101314/what-are-differences-between-operating-expenses-and-cost-goods-sold-cogs.asp
COGS are directly related to the costs associated with producing the respective good. This article takes a look at the key differences between operating expenses and the costs of goods sold.
9Video: Capital Expenses vs Operational Expenses OPTIONAL Students typically spend 2 - 4 Minutes https://www.youtube.com/watch?v=szN3RmiaqvQ
Please note that you only need to watch the first 42 seconds of this video.
A business can face many operational costs over its lifetime, but are there any other expenses to consider? This brief video will introduce you to capital expenses, or CapEx, another form of expense that business must approach strategically.
10Link: Operational Expenses Glossary
Open link
Students typically spend 10 - 20 Minutes
https://quizlet.com/416482030/learn
Ready to test your understanding of the various concepts covered in this subunit? Take this quiz designed to do just that!
Need to refresh your memory of the terms you've learned in this subunit. Use this glossary. Glossary
5.6 - Case Study: Costs
Now that you're equipped with an understanding of operational expenses, take a look at Southern Water Corp's operational expenses! In this subunit, you'll create a value driver tree, perform some analysis, and create a slide deck that explains your findings.
1Project: Create a Cost-Focused Value Driver Tree Students typically spend 1 - 2 Hours
Just as you did with the revenues portion of the Southern Water Corp case study, we'd like you to kick this portion off by creating another value driver tree (using this template) that focuses on costs rather than revenues.
Case Study Steps
Refresh your memory and read through the case study overview Complete a value driver tree to calculate production costs (COGS) as well as operational expenditures showing the relevant cost centers and cost elements that make up both Southern Water Corps' production costs (COGS) and operational expenditure To view the rubric for this project, click here.
Submit Your Work
Title your value driver tree "SW Costs VDT [Your Name] Upload your value driver tree to your OneDrive Submit your value driver tree here and discuss it with your mentor during your next call SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
2Project: Analyze Southern Water Corp's Costs Students typically spend 1 - 2 Hours
Ready to broaden your understanding of Southern Water Corps' costs?
Case Study Steps
Open the same SW Corp Worksheet that you used in the previous case study submission. Complete all cells that are blue.
Navigate to the Financial Actuals Tab. Calculate the production costs (COGS) for July-13 to June-14 using the production cost value driver tree you completed in the previous assignment. Calculate the operational expenses calculation (Production Cost + Overheads) for July-13 to June-14 using the operational expenditure value driver tree you created earlier. Complete all blue highlighted rows.
Navigate to the Financial Budget Tab and fill out the missing information for Kootha using the information provided in the CC Budget Tab
Navigate to the Variance Analysis Tab. Complete the variance analysis comparing actuals vs. budgets overall for production costs and operational expenditures to highlight on a monthly basis, where any costs have varied > 5% from expectations.
Complete a Cost-to-Produce-per-MegaLitre Value Driver Tree. There is no tab you need to navigate to for this step — you just need to create a value driver tree (you will use this when working on the next step.)
Navigate to the Cost-to-Produce Tab. Calculate the Cost-to-Produce-per-MegaLitre for July-13 to June-14 using the information in the tab and your VDT as references.
Navigate to the Variance Analysis Tab. Calculate the variance between the actual revenue (July-13 to June-14) against the budget revenue (July-13 to June-14).
Submit your spreadsheet here and discuss it with your mentor during your next call.
SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
3Project: Create Slides of Your Findings Students typically spend 1 - 2 Hours
Project Steps
Create three PowerPoint slides using this template. Remember to download this template and upload it to your own OneDrive. Please include: Show the overall operational expenditure vs the budget operational expenditure as well as on an individual desalination unit basis (Hint: Consider Stacked Bar Charts or another way to visualize this information) Show the overall variance on a monthly-basis via a stacked column chart (or similar) so the variance trends can be analyzed Show the overall cost-to-produce on a monthly-basis as well as on an individual desalination unit basis Check out the rubric for this slide deck here.
Submit Your Work
Upload the spreadsheet you've completed to OneDrive. Title your PowerPoint "SW Suggested Costs Slides [Your Name]" Upload your PowerPoint to OneDrive. Hyperlink your spreadsheet in your PowerPoint. Submit your PowerPoint (which should contain a hyperlink to your spreadsheet) here and discuss both with your mentor during your next call. SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
5.7 - EBIT
The last driver in the financial equation is Earnings Before Interest and Tax or EBIT. In this subunit, you’ll learn all about EBITs and how they are used in the financial industry.
With EBIT knowledge in your analyst toolbox, you’ll help Southern Water Corp put together a monthly performance summary that identifies their EBIT for the year and the month.
After you’ve completed your work for the case study, you’ll learn about a few more concepts that are unrelated to your case study work but still important for you to learn.
1Video: Intro to EBIT Students typically spend 2 - 4 Minutes https://www.investopedia.com/terms/e/ebit.asp
Investors and analysts alike see earnings before interest and tax (EBIT) as a metric that should be taken very seriously. This video from Investopedia gives a quick and informative introduction to this important concept.
2Link: What is EBIT and Why Does It Matter?
Open link
Students typically spend 10 - 15 Minutes
https://www.investopedia.com/terms/e/ebit.asp
As a recap from the previous unit, you calculate EBIT with this equation: revenue minus the cost of goods sold minus operating expenses. This resource will help you to understand better how EBIT is used in the financial industry.
5.8 - Case Study: EBIT
Alright - you're in the home stretch of the Southern Water Corp case study. Now that you know how to calculate Revenues, Cost of Goods Sold (COGS) and Operating Expenses, your next task is to help Southern Water Corp complete the Year-to-Date EBIT calculation and present your findings to management.
1Project: Create a EBIT-Focused Value Driver Tree Students typically spend 1 - 2 Hours
Start off this portion of the case study by creating a value driver tree like you did when analyzing costs and revenue for Southern Water Corp.
Case Study Instructions
Review the case study overview Complete a value driver tree to calculate EBIT showing how revenues, operating expenses, and production costs all nest together to result in the calculated EBIT To view the rubric for this project, click here.
Submit Your Work
Title your value driver tree "SW EBIT VDT [Your Name] Upload your value driver tree to your OneDrive Submit your value driver tree here and discuss it with your mentor during your next call SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
2Project: Analyze Southern Water Corp's EBIT Students typically spend 2 - 4 Minutes
You've learned all about EBITs so it's time to get some hands-on practice with the help of the Southern Water Corp case study!
Open the SW Corp Worksheet you've used for the last two sections of the Southern Water Corp case study Navigate to the EBIT Tab. Complete the EBIT calculations from July-13 to June-14 using the value driver tree you created for Southern Water Corp in the previous assignment Navigate to the Variance Analysis Tab. Create a new section in the Variance Analysis Tab titled EBIT Variance. Calculate the variance between the actuals EBIT (July-13 to June-14) against the budget EBIT (July-13 to June-14) Submit your spreadsheet to your mentor and discuss it during your next call SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
3Project: Create Slides of Your Findings Students typically spend 2 - 4 Minutes
Project Steps
Create two PowerPoint slides using this template. Remember to download this template and upload it to your own OneDrive. Include the information listed below: Show the actuals EBIT vs. the budget EBIT on an individual desalination unit basis as well as an overall basis (Hint: Consider stacked bar charts or another way to visualize this information)
Complete the section that shows the actuals vs. budgets for revenues, operating expenses (COGS), and overheads. This should show how the EBIT is calculated alongside three bar charts which shows the overall variances for each of the revenue, operating expenses, and overheads areas. The grouping within revenues, operating expenses, and overheads can be either at the cost-center level or for further granularity, at the cost-element level.
Check out the rubric here.
Submit Your Work
Upload the spreadsheet you've completed to OneDrive. Title your PowerPoint "SW EBIT Slides [Your Name]" Upload your PowerPoint to OneDrive. Hyperlink your spreadsheet in your PowerPoint. Submit your PowerPoint (which should contain a hyperlink to your spreadsheet) here and discuss both with your mentor during your next call. SUBMIT YOUR PROJECT Paste URL(s) to your document(s):
https://drive.google.com/doc-id
Submit You can submit multiple times.
5.9 - Balance Sheets, Cash Flows, & Income Statements
In this subunit, you'll work through resources about balance sheets, cash flows, and income statements, three essential topics you'll need to know to perform a successful financial analysis.
1Video: Intro to Balance Sheets Students typically spend 2 - 4 Minutes https://www.investopedia.com/terms/b/balancesheet.asp
This resource will teach you all about how to use a balance sheet — a statement that lists out a business’s assets, capital, and liabilities. You’ll also learn another essential equation: assets = liabilities + owner’s equity. Let’s dive in!
2Article: What is a Balance Sheet?
Read article
Students typically spend 15 - 30 Minutes
https://www.investopedia.com/terms/b/balancesheet.asp
You now know that you can rearrange the equation assets = liabilities + owner’s equity so that you can work with the equation assets - liabilities = equity. But how else can you use a balance sheet? This resource explores the answers to that question.
3Video: Intro to Cashflow Students typically spend 3 - 5 Minutes https://www.investopedia.com/terms/c/cashflow.asp
Cash flow statements go hand-in-hand with balance sheets. A cash flow statement demonstrates how changes in business accounts and income can affect cash flow. But don’t just take it from us — check out this resource to learn why cash flow statements are so important to businesses and investors.
4Article: Corporate Cash Flow: Understanding the Essentials
Read article
Students typically spend 15 - 30 Minutes
https://www.investopedia.com/investing/read-corporate-cash-flow-statement/
Curious how cash flows work at the corporate level? Well, then this resource is for you! This Investopedia article will walk you through the corporate essentials and recap what you’ve already learned about cash flow and statements.
5Video: Intro to Income Statements Students typically spend 2 - 4 Minutes https://www.investopedia.com/terms/i/incomestatement.asp
You’ve already added two new tools to your analytics toolbox while working through this subunit — it’s now time to add a third: the income statement. This resource will introduce you to this additional tool and explore how it differs from balance sheets and cash flow statements.
6Article: Understanding the Income Statement
Read article
Students typically spend 10 - 15 Minutes
https://www.investopedia.com/articles/04/022504.asp
Building on what you learned about income statements in the previous resource, this article takes a closer look at the nuances of the income statement and how you can use them to help any business you work for.
5.9 - Wrap Up
Wrap Up 1Review quiz: Quiz This unit was packed with new terms and concepts. We’ve designed this quiz to help you test your knowledge of everything you learned in this unit. If you find that you’re struggling to remember one of the concepts covered in this quiz, we highly encourage you to review the resources related to the concept. And now, onto the quiz!
30 Minutes
Start quiz
2Link: Interview Questions: Financial Analysis
Open link
Students typically spend 10 - 15 Minutes
https://docs.google.com/document/d/1Ly_azVuayMasvROOxlmmRgvHKyRB9OFIFpBnme-5tl8/edit
The questions listed in this document are similar to questions you may be asked when interviewing for a data analyst role. We’ve included interview questions at the end of most units to help you prepare for future interviews.
3Community Engagement: Trials & Triumphs You’ve completed several intense technical units, including this one about Excel, and we bet you have some triumphs and trials you’d like to discuss with your peers.
Make a post in #general about the challenges and successes you experienced when working with Excel, finding data for your capstone, or working on the case studies. What went well? What advice would you offer to students who haven’t yet worked on these projects?
4Recap Congratulations on making it to the end of this vocabulary-heavy unit! You’re now fluent in key financial terminologies, in particular, revenue, operating expenses, COGS, and EBITs! Well done!
Next up, you’ll dive into a career unit that will teach you how to build a data analyst network — and leverage it effectively!