Financial Statements Analysis

Introduction

This interactive seminar will develop your skills in analyzing your business activities including key steps in analysing financial statements, investments and project performance measures, with a view to increasing growth and profitability and pinpointing problem areas.

Over the five modules the delegates will develop their skills and methods for better financial analysis. Risk management is of vital importance in today’s business environment and the seminar will promote the understanding of key business risks and how to minimise exposure. In capital intensive industries capital project appraisal is vital for profitable decision making, one of the modules aims to expand knowledge in this important area. Each module will include a case study or workshop where the information learned can be applied to further the learning experience. Hands-on models and examples will be a part of every session along with the demonstrations of how to use each.

Seminar Objectives - At the end of this seminar participants will be able to:

• Learn how to evaluate your firm's financial performance
• Manage growth through the financial statements
• Analytical tools explained and used in real world terms
• Risk analysis and it's impact on the firm
• Highlight problem areas to enable solutions to be found
• Learn concrete techniques to enable management to make truly informed decisions
• Understand capital investment decisions
• Improve your company's profit picture and your stockholder's investment
• Keep on top of your firm's financial situation
• Increase your own value to your organization

Who Should Attend?

• Professionals responsible for their firm's financial future
• CFOs wanting to learn the latest techniques in analysis
• Controllers responsible for determining where the company is financially
• Managers responsible for their company's financial future or
• Those seeking a refresher in analytical techniques-including financial analysis
• Accountants, project managers, budget analysts, vice presidents of finance, controllers and treasurers
• Anyone with an interest in investment appraisal

Personal Impact

• Exchange of ideas and knowledge with other professionals
• Increased awareness of techniques in financial analysis and capital appraisal
• Knowledge of business risk
• Increased ability to identify problem areas
• Increased confidence to tackle new situationsl
• Competencies Emphasised
• Increased knowledge of financial analysis
• Ability to interpret financial statements
• Knowledge of techniques to recognise financial distress
• Increased awareness of corporate risk
• Capital appraisal techniques
• Increase technical ability in a variety of key areas

Organisational Impact

• Senior staff with more confidence in their ability to apply advanced techniques to real situations
• Senior staff stimulated by discussions with other professionals ready to put ideas into practise
• Senior staff with awareness of business risk
• Senior staff ready to apply analysis to increase growth and profits

Training Methodology

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

Difficult mathematical concepts are minimized wherever possible and handled in a visual way that is easy to understand with examples demonstrated.

Seminar Outline

Day 1 - Introduction to advanced financial analysis

• Why analyse financial data
• What information and data to use
• How we should use it
• Understanding the cash flow cycle vs the operating cycle
• Projecting and forecasting financial data to develop information on future needs
• The use of financial ratios
• Ratio & trend analysis of financial statements
• Case Study

Day 2 - Financial statements

• Sources of funds
• Common sizing-the how's & why's
• Pro forma financial statements
• Preparing projections for financing sources
• The three kinds of break-even analysis
• Does it make a difference whether we lease or buy
• When should we make versus buy
• Case study

Day 3 - Analytical & performance tools & techniques

• Finding and using data and information
• Easily available tools and techniques for financial analysis
• Using graphical representation
• The fundamental statistical tools
• Fitting statistical techniques to financial data
• Reports and reporting
• Financial distress
• Altman's Z-score analysis & it's uses
• Case study

Day 4 - Capital project analysis

• Capital budget principles
• The Capital Asset Pricing Model versus Arbitrage Pricing Theory
• Capital cost model-building
• Various capital budgeting methods available
• Net present Value vs. Internal Rate of Return
• Other useful methods of evaluation
• How do you choose which method to use
• Is it correct to estimate the firm's capital structure
• Models to use
• Case study

Day 5 - Coming to terms with risk

• Financial risk-management principles – what can be done
• Methods for analyzing financial risk
• Talking to your bankers about managing risk
• Which analytical tools are available
• How to develop the tools for your firm
• Case study
• Using scenario, sensitivity & subjective analysis techniques
• How to minimize the risk factors we find
• Case study
  

Oxford Management Centre
John Eccles House
Robert Robinson Ave
Oxford Science Park
Oxford
OX4 4GP
United Kingdom

Tel: +44 1865 338088

Fax: +44 1865 338100

email info@oxford-management.com