Understanding Financial Statements & Analysis

Understanding Financial Statement & Analysis

INTRODUCTION

This interactive seminar will develop your skills in analyzing your business activities including key steps in analyzing financial statements, investments and project performance measures, with a view to increasing growth and profitability and pinpointing problem areas. Over the five modules the delegates will develop their skills and methods for better financial analysis. Risk management is of vital importance in today’s business environment and the seminar will promote the understanding of key business risks and how to minimize exposure. In capital intensive industries capital project appraisal is vital for profitable decision making, one of the modules aims to expand knowledge in this important area. Each module will include a case study or workshop where the information learned can be applied to further the learning experience. Hands-on models and examples will be a part of every session along with the demonstrations of how to use each.

WHO SHOULD ATTEND?

• Professionals responsible for their firm’s financial future
• CFOs wanting to learn the latest techniques in analysis
• Controllers responsible for determining where the company is financially
• Professionals responsible for their company’s financial future
• Those seeking a refresher in analytical techniques-including financial analysis
• Senior Accountants, project professionals, budget analysts, vice presidents of finance, controllers and treasurers
• Anyone with an interest in investment appraisal

COURSE OUTLINE

DAY 1

Introduction to financial analysis

• Why analyze financial data
• What information and data to use
• How we should use it
• Understanding the cash flow cycle vs the operating cycle
• Projecting and forecasting financial data to develop information on future needs
• The use of financial ratios
• Ratio & trend analysis of financial statements

DAY 2

Financial statements

• Sources of funds
• Common sizing-the how’s & why’s
• Pro forma financial statements
• Preparing projections for financing sources
• The three kinds of break-even analysis
• Does it make a difference whether we lease or buy
• When should we make versus buy

DAY 3

Analytical & performance tools & techniques

• Finding and using data and information
• Easily available tools and techniques for financial analysis
• Using graphical representation
• The fundamental statistical tools
• Fitting statistical techniques to financial data
• Reports and reporting
• Financial distress
• Altman’s Z-score analysis & it’s uses

DAY 4

Capital project analysis

• Capital budget principles
• The Capital Asset Pricing Model versus Arbitrage Pricing Theory
• Capital cost model-building
• Various capital budgeting methods available
• Net present Value vs. Internal Rate of Return
• Other useful methods of evaluation
• How do you choose which method to use
• Is it correct to estimate the firm’s capital structure
• Models to use

DAY 5

Coming to terms with risk

• Financial risk-management principles – what can be done
• Methods for analyzing financial risk
• Talking to your bankers about managing risk
• Which analytical tools are available
• How to develop the tools for your firm
• Case study
• Using scenario, sensitivity & subjective analysis techniques
• How to minimize the risk factors we find