Advanced Financial Statements Analysis
Finance, Accounting & Cybersecurity
INTRODUCTION
This interactive Advanced Financial Statements Analysis training course will update and
develop your skills of analysing financial information, business activities,
and the key risks faced in today’s uncertain economic, political, and physical
global business environment. It will guide you through the key steps of
analysing financial statements, evaluating new investments, and measuring the
performance of your organisation. Throughout this course, the participants will
be able to relate their learning to real-world issues and problems and develop
their ability to generate growth and improve profitability, as well as
pinpointing problem areas for remedial action and will have the opportunity to
acquire financial skills and technical knowledge that will enable them to
manage more effectively.
Objectives
Analyse and interpret an organisation’s annual report and
accounts
Use ratio analysis to evaluate financial position and
financial performance
Use analytical techniques to forecast future performance
Critically evaluate the impact on financial position
Performance of the subjective nature of accounting policies
Identify the impact of profit, cash flow and risk on capital
investment projects and business valuations.
Course Outline
DAY 1
Introduction to Advanced Financial Analysis
Why analyse financial data?
Who are the users of Financial Information?
Sources of Financial Information
Published Annual Reports and Accounts – What is their
purpose?
The Structure and Contents of an Annual Report and Accounts
Creative Accounting, Financial Scandals, and the Agency
Problem
Corporate Governance, Sustainability, Ethics and Corporate
and Social Responsibility (CSR) Reporting
The Three Main Financial Statements
Income Statement
Balance Sheet
Statement of Cash Flows
DAY 2
Analysing the Annual Report and Accounts
Using Ratio and Other Analyses of the Annual Report and
Accounts to Assess Financial Position and Financial Performance
Profitability and Cost-Volume-Profit (CVP) Analysis
Efficiency and Working Capital
Liquidity and the Short-term Solvency
Investment and Growth
Financial Structure and Long-term Solvency
Ratio Analysis using Excel
Excel Trend Analysis using Common-size Horizontal Analysis
and Vertical Analysis for Comparability
DAY 3
Analytical Tools, Cash vs. Profit and the Cash Forecast
The Dupont System of Ratio Analysis and Pyramids of Ratios
Segmental Analysis and Value Added Analysis of the Annual
Report and Accounts
The Fundamental Statistical Tools and Graphical
Representations
Using Statistical Techniques to Analyse and Forecast
Financial Data
The Impact of Alternative Asset Valuation Methods on the
Balance Sheet and Profitability
Cash flow vs. Profit – The Best Measure of Financial
Performance
Working Capital and the Cash Flow Operating Cycle
Direct and Indirect Cash Flow Analysis and the Cash Flow
Forecast
DAY 4
Financing the Business, Capital Investment Project and
Business Valuation
Analysis of the Balance Sheet to Identify Long-term Debt and
Equity, and Short-term Financing
Capital Cost Models: Cost of Equity using Dividend Growth
and Capital Asset Pricing Model (CAPM); Cost of Debt
Weighted Average Cost of Capital (WACC)
Optimal Capital Structure Models to Minimise WACC
Future Values, Present Values, and Discounted Cash Flow
(DCF)
Using Net Present Value (NPV), Internal Rate of Return
(IRR), Modified Internal Rate of Return (MIRR) and Equivalent Annual Cost (EAC)
to Analyse and Evaluate Capital Projects
The Reasons for Business Valuations
Business Valuation Models
DAY 5
Analysing and Predicting Corporate Failure, Business and
Financial Risk
Predicting Financial Distress and Corporate Railure – The
Altman Z-score Model
Risk and Uncertainty
Risk Analysis using Expected Values, Standard Deviation and
Coefficient of Variation
Sensitivity, Simulation, Scenario and Break-even Analysis
Techniques
The Analytical Tools to Manage Risk
Systematic Risk, Unsystematic Risk, Business Risk and
Financial Risk
Financial Risk– Interest Rate and Foreign Currency Exchange
Rate Exposures
Using Insurance, Hedging and Derivatives to Mitigate and
Minimise risk