Advanced Financial Statements Analysis
Finance & Accounting
Course Description
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
By the end of this
GLOMACS training programme, participants will have learned how to:
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 Cost of Debt
Weighted Average Cost
of Capital
Optimal Capital
Structure Models to Minimise
Future Values, Present
Values, and Discounted Cash Flow
Using Net Present
Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return
(MIRR) and Equivalent Annual Cost 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.