Introduction to the course
KC Academy's Advanced Financial Statements Analysis training course will update and develop your skills in analysing financial information, business activities, and the critical risks faced in today's uncertain economic, political, and physical global business environment. It will guide you through the essential steps of analysing financial statements, evaluating new investments, and measuring your organisation's performance. 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, improve profitability, and pinpoint problem areas for remedial action. They will have the opportunity to acquire financial skills and technical knowledge that will enable them to manage more effectively.
Financial statements – income statements, balance sheets, and cash flows – are published annually by all organisations. But what do they mean? Are they telling us the truth? How do they enable us to manage our organisations more effectively and more profitably?
You may think your financial knowledge and know-how are adequate and up-to-date – but it probably is not!
It's time to wake up and smell the coffee – financial awareness is crucial for all non-financial managers, accountants, and financial managers.
This KC Academy training course will highlight:
- The value of the annual report and accounts and other sources of critical financial information
- Use of a range of tools and techniques to analyse and evaluate the financial position and financial performance
- Effective acquisition and use of financial resources
- Analysis and valuation of capital investment projects and businesses
- Analysis and management of a company and financial risk
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
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
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
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
Analysing 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 Minimise risk
Professional certificate & Accreditation
Financial statements – income statements, balance sheets, and cash flows – are published annually by all organisations. But what do they mean? Are they telling us the truth? How do they enable us to manage our organisations more effectively and more profitably? This KC Academy course will provide you with an in-depth look at Financial Statements Analysis.