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Advanced Financial Statements Analysis

Evaluation and Interpretation of Financial Position and Fulfillment

Advanced Financial Statements Analysis

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FB32
29.Dec.2024 to 02.Jan.2025
Online -
Cost 1250 £ GBP

Introduction

This training course will refresh and improve your skills in analyzing financial data, business projects, and the major risks encountered in today's uncertain economic, political, and physical global business conditions.

It will guide you through the key stages of analyzing financial statements, estimating new investments, and regulating your organization's performance.

During this course, delegates will be able to apply their knowledge to real-world issues and problems, promoting their ability to generate growth and increase profitability, as well as pinpointing problem areas for corrective action, and will have the opportunity to gain financial skills and technical awareness that will allow them to manage more efficiently.

All organizations distribute annual financial statements, which include income statements, balance sheets, and cash flow statements. But what exactly do they mean? Is what they're telling us true? How do they help us manage our organizations more effectively and successfully?

You may believe your financial knowledge and awareness are adequate and up to date - but they are not! Financial knowledge is essential for all non-financial supervisors, as well as accountants and financial directors.

This training course will highlight:

  • The utility of the annual report and accounts and other roots of key financial information
  • Advantage of a range of devices and techniques to analyze and judge the financial position and financial fulfillment
  • Efficient purchase and use of financial resources
  • Review and estimate of capital investment projects and businesses
  • Review and supervision of a business and financial risk

 

Objectives of Advanced Financial Statements Analysis

By the end of this training schedule, delegates will have acquired how to:

  • Explain and evaluate the organization’s annual report and accounts
  • Utilization ratio review to evaluate the financial position and financial achievement
  • Utilize analytic procedures to forecast expected performance
  • Critically evaluate the influence on the financial position
  • Performance of the subjective nature of accounting policies
  • Recognize the influence of advantage, cash flow and risk on capital financing projects and business judgments

Course Methodology of Advanced Financial Statements Analysis

This training program will be run in conjunction with workshop principles, with formal presentations that include practical illustrations and associated worked cases used to apply the financial tools and techniques in a real-world setting.
Interactive team-based activities and case studies reinforce the form of each of the enclosed training ideas and arguments.
These are reinforced with the Instructor's assistance and advice, as well as his extensive real-world experience and knowledge of financial statements and analysis. The replacement of expertise and ideas will be advanced through group discussion. Wherever possible, difficult mathematical concepts are reduced and worked in a visual, easy-to-understand manner - our goal is for this to be enjoyable training expertise.

Organizational Impact of Advanced Financial Statements Analysis

Delegates in this training course will provide gains for their organization within the magnified experience and set of skills that they will get back to the workplace:

  • Knowledge of the relevance and significance of financial statements
  • The utility of the devices and techniques to monitor and promote business performance
  • Description of the problem regions, and recommended realistic solutions
  • Financial analysis for better-informed decision-making
  • Appreciation of the impact of financing on the cost of capital, investment projects, and business valuations
  • Description, review, and management of a business and financial hazard

Personal Impact of Advanced Financial Statements Analysis

By attending this training course, you will greatly develop your Financial Analysis experiences and acquire:

  • Enhanced knowledge of the language of finance and accounting
  • Raised knowledge of the devices and techniques of financial analysis
  • A recognition of the significance of cash flow versus advantage
  • More excellent confidence to tackle new conditions
  • The capability to classify, analyze and maintain risk and other problem regions
  • An interchange of ideas and consciousness with other professionals

Who Should Attend

This training course is fitting for a wide range of personnel from businesses, corporations, and governmental organizations. In addition to anyone working in the Finance, Accounting, Costing, Budgeting, and Planning offices.

 This training course will greatly serve:

  • Project Directors and other Experts
  • CFOs, Controllers, and Treasurers qualified for the Financial Management of the Organization
  • And any other Managers who wish to develop, stimulate and refresh their understanding of analysis of financial information, and application to efficient decision-making

Course Outline

DAY 1

Introduction to Advanced Financial Analysis

  • Why analyze 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

Analyzing 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 Analyze 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 Minimize 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 Analyze and Evaluate Capital Projects
  • The Reasons for Business Valuations
  • Business Valuation Models

DAY 5

Analyzing and Predicting Corporate Failure, Business, and Financial Risk

  • Predicting Financial Distress and Corporate Failure – 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 Minimize risk

Associations

FB32
29.Dec.2024 to 02.Jan.2025
Online -
Cost 1250 £ GBP