Advanced Analysis and Evaluation of Financial Statements

Introduction:

The Advanced Financial Statement Analysis course is designed for professionals seeking to master advanced skills in analyzing financial statements. This course provides participants with the tools and practical knowledge needed to assess and analyze financial reports comprehensively, helping them understand the significance of financial statement analysis in evaluating a company's financial position relative to its competitors. Participants will learn to leverage financial analysis for informed decision-making and effective risk management, gaining the confidence to handle new challenges and engage in strategic financial thinking.

Objectives:

Upon completion of the course, attendees will be able to:

• Read and interpret their organization’s annual financial report with confidence.
• Conduct an in-depth analysis of their firm’s competitive financial position.
• Apply various tools and techniques of analysis through case studies and practical applications.
• Identify and manage business risks effectively.
• Evaluate the impact of additional investments on growth and competitiveness.
• Enhance their leadership and management capabilities, increasing their value to the company.
• Make informed capital investment decisions.
• Utilize best practices in capital and financial appraisal with a high level of creativity.
• Identify and address internal organizational weaknesses.
• Approach new financial situations with greater confidence and clarity.

Training Methodology:

• Interactive lectures
• Case studies
• Group discussions
• Analytical tools demonstrations
• Simulation activities
• Role-playing scenarios

Course Outline:

Unit 1: Introduction to Advanced Financial Analysis

• Analyzing users of financial information
• Examining the three key financial statements: performance, position, and cash flow
• Justifying assumptions for financial analysis
• Identifying types and sources of finance
• Cash inflow vs. operative cycle
• Conducting extensive ratio analysis for financial statements
• Understanding different types of ratios and their importance

Unit 2: Financial Statements

• Using standard sizing for performance and position comparison
• Understanding the balance sheet/statement of financial position and its format
• Exploring different sources and types of finance
• Preparing financial forecasts for prospective financing sources
• Basics of break-even analysis
• Evaluating make-or-buy decisions for capital assets
• Considering outsourcing as an alternative to manufacturing

Unit 3: Analytical & Performance Tools & Techniques

• Sources of financial data and information
• Autonomy of audit mechanisms and their clarification
• Using graphs to present findings
• Essential statistical methods for financial data
• Applying statistical tools to financial data
• Disclosure and communication of financial information
• Analyzing causes of financial problems
• Utilizing the Altman Z Score and its application

Unit 4: Capital Project Analysis

• Introducing investment projects likely to be accepted by the organization
• Modeling and forecasting investment projects
• Basic techniques for investment project evaluation
• Understanding the importance of time in investment appraisal: NPV vs. IRR
• Evaluating appraisal techniques and selecting the best strategy
• Consulting on the company’s cost of capital vs. equity holdings
• Comparative analysis of dividend valuation and capital asset pricing theories

Unit 5: Coming to Terms with Risk

• Elements of financial risk and their management
• Methods and tools for analyzing and managing financial risk
• Collaborating with bankers to mitigate financial risk
• Analyzing risk measurement tools
• Creative measures for company-specific tools
• Scenario, sensitivity, and subjective methods, including qualitative analysis
• Actions to control undesirable factors

Conclusion:

The course emphasizes enhancing strategic and managerial understanding of advanced financial statement analysis. Participants will focus on critical areas, including expense analysis, mergers and acquisitions, and integrated risk management methodologies. The course also explores the use of XBRL and internal financial improvements to foster effective business strategies and risk management.