Georgetown University

Financial Statement Analysis

Financial Statement Analysis (FSA) is the process of reviewing and evaluating an organization's financial statements to gain an understanding of its economic situation. Good FSA enables effective decision-making. For example, it plays an important role in understanding the potential risk and rewards of an investment.

Learning Outcomes of Financial Statement Analysis

  • Analyze wealth creation through the Dupont framework
  • Prepare and analyze the Statement of Cash Flows
  • Understand some critical accounting issues and perform pro forma analyses
  • Understand earnings management
  • Forecast key variables
  • Build an integrated valuation model using the residual income framework