How We Approach Financial Analysis
Built on research, numbers, and the stuff most people skip over.
You know what's interesting? Most people investing in Australian markets never look at the actual financial statements. They read headlines, check a stock tip from a mate, maybe glance at the price chart.
We do the opposite. We start with the annual reports and work backwards. Balance sheets, cash flow statements, management discussion—those boring sections that put most people to sleep. That's where the real picture lives.
Our methodology isn't flashy. It's systematic research combined with proper ratio analysis. Works in Sydney, works in Melbourne, works anywhere numbers matter.
Explore Our ProgramThree Layers of Investigation
We narrow focus as we dig deeper—from market overview down to specific decision points.
Industry Context
What sector are we examining? Who are the major players? What's the competitive landscape look like in 2025? We map the territory before picking individual companies.
Economic Environment
Interest rates from the RBA, inflation trends, consumer spending patterns—the macro picture shapes everything. We track these indicators because they affect company performance whether management admits it or not.
Market Positioning
Where does this business sit relative to competitors? Are they gaining or losing ground? Market share data tells stories that press releases often hide.
Financial Statement Analysis
Revenue growth, margin trends, debt levels, working capital—all the technical stuff. We calculate ratios, compare them to historical patterns and industry averages. This takes time but reveals what's actually happening with the business.
Management Assessment
Who's running this company? What's their track record? We read transcripts from earnings calls, examine capital allocation decisions, look at insider ownership. Management quality matters more than most investors realize.
Valuation Framework
After understanding the business and its context, we ask: what's it worth? We use multiple valuation methods, compare them, and acknowledge the uncertainty inherent in any projection. This final step brings everything together into an investment thesis.
The Research Process Nobody Talks About
Here's the part that doesn't make for good marketing copy: fundamental analysis is repetitive work. You read dozens of financial statements. You build spreadsheets. You compare numbers across quarters and years.
It's not glamorous, but it's effective. When you've done this enough times, patterns emerge. You start recognizing red flags in working capital trends. You notice when management language shifts from confident to evasive.
We teach this systematic approach because it works regardless of market conditions. Bull market, bear market, sideways market—solid analysis gives you an edge. Not a guarantee, mind you. Markets are unpredictable. But better information leads to better decisions over time.
Isadora Velthuizen
Senior Analyst, Research Division
What You'll Actually Learn
Practical skills for analyzing Australian companies, explained without the usual textbook nonsense.
Reading Financial Statements
How to extract meaningful information from balance sheets, income statements, and cash flow reports. We cover what to look for and what to ignore.
Ratio Analysis That Makes Sense
ROE, debt-to-equity, current ratio, free cash flow margin—these aren't just formulas. They're diagnostic tools. We show you how to calculate them, interpret them, and understand when they're misleading.
Some ratios work better for certain industries. Banks need different metrics than mining companies. Context matters as much as the calculations themselves.
Industry Comparison
Benchmarking companies against competitors and sector averages. This reveals whether strong performance is company-specific or just riding an industry wave.
Working With Primary Sources
Annual reports, quarterly filings, regulatory disclosures—we go to the source. Secondary analysis has its place, but nothing beats reading the actual documents companies file with ASIC.
Valuation Models
DCF analysis, comparable company analysis, precedent transactions—different approaches for different situations. Each method has limitations we'll discuss openly.
Risk Assessment
Every investment carries risk. Our job is identifying and quantifying those risks before committing capital. We look at business risks, financial risks, market risks, and regulatory risks.
This isn't about eliminating risk—that's impossible. It's about understanding what you're getting into and deciding if the potential return justifies the risk you're taking.
Critical Thinking
Questioning assumptions, verifying claims, considering alternative explanations. These soft skills matter as much as the technical analysis.
Leocadia Anstruther
Program Director - Financial Education
Our autumn 2025 program starts in March. Small groups, intensive work sessions, real company case studies from the ASX. We're not promising career miracles—just solid training in financial analysis methodology.