Analysing Financial Statements

Programme Overview

This course will be of benefit to those who need to read, understand and analyse financial statements of corporate businesses on a regular basis. New or recent recruits to the financial services industry, particularly within banking, stock broking, equity sales and research, corporate finance, business valuation and fund management, will find the knowledge acquired invaluable.

Who should attend?

This course is aimed at senior managers who have the responsibility for tackling financial problems and making financial decisions that affect their respective department or organisation. This course is also ideal for managers who want to refresh and further develop their knowledge of financial planning and practice. This course aims to provide a thorough insight into the meaning and analysis of the financial statements of corporates. A basic knowledge of accounts formats and jargon is assumed.

Objectives

Learning outcomes include obtaining a greater understanding of:
• Accounting Fundamentals
• Brief recap on the primary financial statements and fundamental accounting concepts
• Accounting equation
• Regulation
• Format of published financial statements and contents of published annual reports
• Understand the terminology relating to company accounts
• Read, analyse and interpret a set of accounts
• Assess the effects of business activity on the balance sheet
• Identify trend and carry out comparisons
• Understand the key ratios for measuring profitability, liquidity and stability
• Recognise the benefits and limitations of ratio analysis
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Day 1

Introduction and Overview
1: Overview of Financial Statement Analysis
2: Financial Reporting and Analysis

Part Two: Accounting Analysis
3: Analysing Financing Activities
4: Analysing Investing Activities

Day 2

5: Analysing Investing Activities: Special Topics
6: Analysing Operating Activities

Part Three: Financial Analysis
7: Cash Flow Analysis
8: Return on Invested Capital

Day 3

9: Profitability Analysis
10. Prospective analysis
11: Credit Analysis
12: Equity Analysis and Valuation
Comprehensive Case: Applying Financial Statement Analysis