This Advanced Financial Analysis course brings together the essential elements of financial statement analysis to help participants improve their financial analysis skills, enable them to ask the right questions, see the real risks facing businesses and investors, feel more confident in their ability to comment on business activities and performance and analyze financial health for management.
This course aims to give delegates the opportunity to examine the various means to assess the operational and financial performance of their organizations as well as their competitors, suppliers, and clients.
Ensuring that the basics are in place, this course will quickly go on to look at some of the more advanced ratios for assessing the financial health of an organization – both from an internal perspective as well as an external ‘asset valuation’ perspective. We will consider industry-specific ratios during the course and feel what information they tell us.
Delegates are encouraged to bring with them the financial statements of their organizations, their competitors, their suppliers and their clients to ensure that the concepts covered can be applied to their own specific companies.
This interactive Advanced Financial Analysis training seminar will update and develop your skills in analyzing business activities. It will guide you through the critical steps of analyzing financial statements, evaluating new investments and measuring the performance of your organization.
This training seminar will develop your ability to generate growth and improve profitability, as well as pinpointing problem areas for remedial action. You will have the opportunity to acquire skills and technical knowledge that will enable you to manage more efficiently.
This training course will consider the key risks that organizations face in today’s uncertain economic, political, and physical environment. Effective risk management is of vital importance in the global business environment.
This workshop will explore how organizations may analyze, manage and mitigate/ minimize their exposures to both business and financial risk. Throughout the training course worked examples, exercises and case studies will be used to ensure that delegates can relate their learning to real-world issues and problems.
You might be interested in another Financial Training options as a next step.
This course is accredited by NASBA.
YOU WILL LEARN HOW TO
This training seminar will develop your ability to generate growth and improve profitability, as well as pinpointing problem areas for remedial action. You will have the opportunity to acquire skills and technical knowledge that will enable you to manage more efficiently.
This training seminar 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 analyze and evaluate financial position and financial performance
Efficient acquisition and use of financial resources
Analysis and valuation of capital investment projects and businesses
Investigation and management of market and economic risk
List and differentiate between the essential components of basic financial statements
Explain financial statements’ ratios and formulate Excel sheets and graphs for financial statements analysis
Illustrate creative accounting schemes and critique the validity of accounting rules used
Assess the quality of financial reports and evaluate quality of earnings and cash flows reported
Analyze the financial position and performance of a company over a period and conclude its sustainability
IMPORTANT COURSE INFORMATION
This course is worth (25) NASBA CPEs.
Participants who fully attend this course and complete the test on the last day will receive a Strategic Axis Professional Certificate (SAPC). SAPC certificates are regionally recognized and can be quite valuable when applying for more senior roles within the organization or outside.
COURSE OUTLINE
Users of financial data
Types of available financial information and the annual financial report
Content of the annual financial report and ways to read it
Non-financial elements of the annual financial report and their importance
Understanding the income statement, balance sheet, and cash flow statement
Other comprehensive income components
How to access data from Tadawul, ADX, DFM, Bloomberg, and Yahoo! Finance
Users of financial data
Types of available financial information and the annual financial report
Content of the annual financial report and ways to read it
Non-financial elements of the annual financial report and their importance
Understanding the income statement, balance sheet, and cash flow statement
Other comprehensive income components
How to access data from Tadawul, ADX, DFM, Bloomberg, and Yahoo! Finance
Module 2: Basics of industry analysis and analyzing ratios using Excel
Industry analysis: understanding Michael Porter’s five forces shaping industry’s long-term profitability
Common size analysis to improve comparability
Calculating trends and growth patterns
Ratio analysis to assess key aspects of company performance:
Profitability
Liquidity
Efficiency and working capital management
Financing structure and risk
Altman Z-score to assess potential bankruptcy
Using graphical representation
Module 3: Financial cosmetics and creative accounting
Last In First Out (LIFO) versus First In First Out (FIFO) and the effect on profits and taxes
Explaining LIFO reserve and LIFO liquidation
Converting reported inventory from LIFO to LIFO for purposes of comparison
Valuing stock at net realizable value: looking for signals of obsolete inventory
Analyst’s consideration when examining stock
Evaluating how capitalizing versus expensing costs affect financial statements and ratios
Effect of different depreciation methods on financial statements
Impairment and revaluation of property, plant, and equipment
The choice of operating lease or finance lease
Using special purpose vehicles for balance sheet manipulation
Joint ventures: using equity method
Consolidation: inflating goodwill by using full goodwill instead of partial goodwill method
Employees’ compensation: completeness of end-of-service indemnity obligation
Stock options and stock grants instead of bonuses
Module 4: Assessing quality of financial reports
Framework for assessing company’s quality of financial reports
Potential problems that affect quality of financial statements
Defining concept of sustainable and persistent earnings
Beneish model: M-score to describe degree to which revenues are manipulated
Evaluating the earnings quality of a company
Assess the cash flow quality of a company
Indicators of balance sheet quality
Sources of information about risk
Module 5: Integration of financial statements analysis techniques
Using a framework for financial statements analysis
Evaluating quality of a company’s economic data
Recommending adjustments to improve quality and comparability
Module 6: 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 Minimise risk
