Introduction
Financial analysis involves assessing the viability, stability, and profitability of a business, sub-business, or project by analyzing financial numbers from various sources. This course empowers participants to make sound corporate financial decisions by enhancing their knowledge of financial analysis.
Learning Objectives
By the end of this Financial Analysis Training Course, participants will be able to:
- Evaluate capital investments, financing options, and cash flows.
- Assess business operations, processes, managers, and capacity utilization.
- Use financial statement information to analyze financial performance.
- Forecast future business conditions.
Training Methodology
This course includes:
- Lectures by experienced trainers
- Group discussions
- Problem-solving exercises
- Projects
- Sharing experiences and best practices from participants’ organizations Xcelerate Training Institute follows the ‘Do–Review–Learn–Apply’ model for an effective learning experience.
Benefits for Your Organization
Organizations will benefit from:
- Real-time assessment of financial viability, stability, and profitability.
- Identification of financial strengths, weaknesses, and relationships.
- Determination of sufficient liquidity to meet upcoming debts.
- Cost reduction and improved bottom line.
- Spotting trends and variations over time through financial statement analysis.
Benefits for You
Participants will gain:
- Ability to determine the company’s health and stability.
- Intuitive understanding of how the company conducts its business.
- Insight into resource management and accounting procedures.
- Skills to select the correct taxation for the company.
- Capability to correct deviations and take necessary actions.
Target Audience
This course is ideal for:
- Accounting and finance professionals
- Financial controllers, finance managers, financial systems analysts, senior accountants, financial accountants, management accountants
- Chief Financial Officers (CFOs), finance directors, and strategic planners
Course Outline
Introduction to Financial Analysis
- Role of Financial Analysis
- Traditional vs. Modern Financial Analysis
Evaluating Capital Investments
- Hurdle Rate
- Payback Period
- Net Present Value
- Internal Rate of Return
- Cash Flow Modeling Issues
Evaluating Financing Options
- Types of Funding Options
- Cost of Funding Options
- Risks Associated with Funding Options
- Control Issues with Financing Options
Evaluating Cash Flow
- Evaluating Working Capital
- Creating a Cash Flow Model for Capital Investments
- Developing and Evaluating a Cash Forecast
- Incremental Cash Flow Analysis
- Interpreting Variations in Cash Flow
Analyzing Business Processes
- Product/Service Profitability Analysis
- Production Function Analysis
- Sales Function Analysis
- Marketing Function Analysis
- Human Resources Analysis
- Computer Services Analysis
- Accounting & Finance Analysis
- Outsourcing Function Analysis
- Reporting Results to Target Departments
Preparation and Presentation of Financial Statements
- Complete Set of Financial Statements
- Financial Reporting Standards
- Balance Sheet
- Profit and Loss Statement
- Cash Flow Statement
- Changes in Equity
- Accounting Policies and Notes
- Relationship Among Financial Statements
- Inherent Limitations of Financial Statements
Interpretation of Financial Statements
- Horizontal Analysis
- Vertical Analysis
- Liquidity Analysis
- Solvency Analysis
- Profitability Analysis
- Asset Management
Financial Forecasting
- Budgets vs. Forecasts9
- Run Rate Concept
- Revenue Forecasting
- Forecasting Cost of Goods Sold
- Forecasting Fixed and Variable Costs
- Forecasting Balance Sheet Accounts