This course is part of the Valuation and Financial Analysis For Startups Specialization
Financial Analysis for Startups
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About this Course
4.3
23 ratings
In the previous two courses, you have learned how to value startups using the discounted cash flow method and multiple methods. However, you have not learned how to estimate cash flows or earnings of startups. In this course, you are going to learn the concepts and usage of financial ratios. Using financial ratios such as profitability, liquidity, leverage, efficiency, and growth, you can tell financial health of a startup. Profitability ratios measure how profitable a firm is by looking at ROS, ROA, and ROE. Liquidity ratios measure how quickly a firm turns assets into cash to pay-off short-term liability and they include Current Ratio, Quick Ratio, and Cash Ratio. Leverage ratios measure how much long-term debt a firm has relative to its assets or equity. Efficiency ratios measure how efficiently a firm utilizes its assets. It is like a physical exam for humans and you can tell the fiscal status of a startup using financial ratios. You can also develop pro forma financial statement using financial ratios. Using pro forma financial statement, you can tell future financial status of a startup as well as cash flows. In addition, using information from pro forma statement and valuation methods, you can do the valuation of a startup.
Syllabus - What you will learn from this course
Week
1Financial Ratio Analysis
Financial statements contains a huge amount of information. Thus, financial ratios are used broadly to condense them into a convenient form. In this module, you will learn several key financial ratios that are widely used in company valuation. You can also understand the limitations of financial ratio analysis.
6 videos (Total 27 min), 6 readings, 3 quizzes
6 videos
1.1 Liquidity Ratio6m
1.2 Leverage Ratio4m
1.3 Efficiency Ratio3m
1.4 Profitability Ratio, Market Value Ratio5m
1.5 Financial Ratio Practice4m
6 readings
1.1 Slide10m
1.2 Slide10m
1.3 Slide10m
1.4 Slide10m
1.5 Slide10m
Financial Ratio Summary10m
3 practice exercises
Practice 1.1~1.218m
Practice 1.3~1.418m
Week 140m
Week
2Long-term Financial Planning
In this week, you will learn how to make financial planning. In other words, you will examine what the firm can accomplish by developing a long-term financial plan. Moreover, you are going to learn how much financing the firm will need to support the predicted sales growth, which called the percentage of sales approach.
3 videos (Total 18 min), 3 readings, 4 quizzes
3 readings
2.1 Slide10m
2.2 Slide10m
2.3 Slide10m
4 practice exercises
Practice 2.112m
Practice 2.212m
Practice 2.312m
Week 238m
Week
3Pro Forma Statements
In this week, you will construct pro-forma statements, financial ratios and free cash flow using Samsung Electronics historical financial statements. You will use real case for generating pro-forma statements and financial ratios. In addition, you will can estimate external financing needed using Yonsei Corporation case.
3 videos (Total 18 min), 4 readings, 2 quizzes
3 videos
3.2 Pro Forma Statements - Free Cash Flow5m
3.3 Pro Forma Statements - EFN and Growth rate Review4m
4 readings
3.1 Slide10m
Samsung Excel Template (3.1-3.2)10m
3.2 Slide10m
3.3 Slide10m
2 practice exercises
Practice 3.1~3.327m
Week 335m
Week
4Planning for Growth at Ysom Inc.
This week will have two parts. First part will be spent on a short wrap up video or materials. Second part will be peer reviews. You will see Ysom Inc. again. You will design pro forma financial statements (Balance sheet, Income statement, Cash flow statement) and calculate financial ratios, EFN.
2 videos (Total 11 min), 3 readings, 1 quiz
3 readings
4.1 Slide10m
4.2 Slide10m
Ysom Inc. Excel Template10m
Instructor
Hyun Han Shin
ProfessorSchool of Business
About Yonsei University
Yonsei University was established in 1885 and is the oldest private university in Korea.
Yonsei’s main campus is situated minutes away from the economic, political, and cultural centers of Seoul’s metropolitan downtown. Yonsei has 3,500 eminent faculty members who are conducting cutting-edge research across all academic disciplines. There are 18 graduate schools, 22 colleges and 133 subsidiary institutions hosting a selective pool of students from around the world.
Yonsei is proud of its history and reputation as a leading institution of higher education and research in Asia.
About the Valuation and Financial Analysis For Startups Specialization
The Startup Valuation and Financial Analysis Specialization teaches two of the most often used methods to find the value of a startup. You’ll learn how to find the value of founder’s ownership before and after additional funding, how to read financial statements and make pro-forma statements, and how to determine the financial health and status of a startup and estimate future earnings and value. You’ll then use various investment criteria, such as Net Present Value (NPV) and Individual Rate of Return (IRR), to make a decision about whether and where to invest your money.
Specific topics include: the time value of money, discounted cash flows method, multiple method, financial statements analysis, free cash flows, capital budgeting decision rules and current trends. The Capstone Project will find the value of startups using the methods taught in the course.
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
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