The video gives a high level overview of why financial statement analysis is used. It describes financial statement analysis as part of business analysis.
Presenter provided audience with an interesting discussion of how to estimate the fair value of the business prior to making investment decisions. This process requires making adjustments after a careful analysis of the company's management, its capital structure, its business environment financial risk and future earnings prospects or the market value of its net assets. Common business valuation approaches discussed included a review of financial statements using horizontal, vertical, trend and ratio analysis and discounting cash flow models that are needed to arrive at the current market value of the company. Presenter also interjected meaningful visualizations to illustrate concepts nicely during his presentation.