Conference: Advanced Financial Statements Analysis

Introduction

This interactive seminar enhances skills in financial analysis, investment appraisal, and performance measurement to drive growth and profitability. It addresses key risks in today’s uncertain business environment and teaches effective risk management strategies. Delegates will explore real-world case studies and practical tools for evaluating financial reports, business performance, and investment proposals. Emphasis is placed on identifying and mitigating financial risks to safeguard business value. The program equips participants to manage effectively across all organizational levels.

Objectives

• Read and understand their organization’s Annual Financial Report

• Evaluate their firm's financial performance

• Understand and use analytical tools and techniques in practical case-study situations.

• Identify business risks, and consider how these should be managed.

• Appreciate the importance of new investments in maintaining growth and competitiveness, and how these investments should be evaluated.

• Improve their management skills and increase their value to the organization.

• Understand capital investment decisions

Conference Methodology

The seminar will be conducted along with workshop principles with formal lectures, case studies, and interactive work examples. Relevant case studies will be provided to illustrate the application of each tool in an operations environment. Each learning point will be reinforced with practical exercises. Discussion in groups will promote the exchange of concepts and ideas.

Organizational Impact

• Awareness of the relevance and importance of financial statements

• Understanding of the tools and techniques that can monitor and improve performance

• Ability to identify problem areas, and suggest realistic solutions

• Ability to identify and analyze financial risks, and how these can be effectively managed

• The financial knowledge to make better, more informed, decisions

Personal Impact

• Exchange of ideas and knowledge with other professionals

• Increased awareness of techniques in financial analysis and capital appraisal

• A better understanding of the language of finance and accounting

• Knowledge and understanding of business risk

• Increased ability to identify problem areas

• Increased confidence to tackle new situations

Outlines

DAY 1

Introduction to Advanced Financial Analysis

• Who are the users of financial data?

• The three key financial statements, measuring performance, position, and cashflow

• Why does financial data have to be analyzed?

• Sources and types of financial information

• Understanding the cash flow cycle vs. the operating cycle

• Ratio & trend analysis of financial statements

• Categories of ratios, and what they reveal about the company

• Case Study

DAY 2

Financial Statements

• How to use common sizing to compare performance and position

• The format and structure of the Balance Sheet / Statement of Financial Position

• Sources and types of finance

• Preparing projections for financing sources

• Break-even analysis

• Case study

• How to minimize the risk factors we find

DAY 3

Analytical & Performance Tools & Techniques

• Finding and using data and information

• Easily available tools and techniques for financial analysis

• Using a graphical representation

• The fundamental statistical tools

• Fitting statistical techniques to financial data

• How do you choose which method to use

• Measuring the company’s capital structure, and estimating the cost of capital

• Is The dividend valuation model or capital asset pricing model, best?

• Case study

DAY 4

Capital Project Analysis

• How new investment projects can meet corporate objectives

• Investment projects - model-building and forecasting

• Basic techniques for appraisal of investments

• Incorporating the value of timing - Net present Value vs. Internal Rate of Return

• Reports and reporting

• Financial distress

• Altman's Z-score analysis & its uses

• Case study

DAY 5

Coming to Terms with Risk

• Financial risk-management principles – what can be done

• Methods for analyzing financial risk

• How your bankers can help you to manage financial risk

• Analytical tools for measuring risk

• How to develop the tools for your firm

• Using scenario, sensitivity & subjective analysis techniques

• Should we lease or buy our equipment?

• Should we consider ‘buying in’ instead of ‘making’

• Case study