Advanced Skills In Statistical Reporting And Comparison Tables
Course Code: FA16
►Course Objective
- Analyse and interpret an organisation’s annual report and accounts
- Use ratio analysis to evaluate financial position and financial performance
- Use analytical techniques to forecast future performance
- Critically evaluate the impact on financial position
- Performance of the subjective nature of accounting policies
- Identify the impact of profit, cash flow and risk on capital investment projects and business valuations
►Target Audience
- Project Managers and other professionals
- CFOs, Controllers and Treasurers responsible for the financial management of the organisation
- and any other managers who wish to improve, refresh and update their understanding of analysis of financial information, and application to effective decision-making
►Course Outline
DAY 1
Introduction to Advanced Financial Analysis
- Why Analyse Financial Data?
- Who are the Users of Financial Information?
- Sources of Financial Information
- Published Annual Report and Accounts – what is their purpose?
- The Structure and Contents of an Annual Report and Accounts in the UK and other countries
- Creative Accounting, Financial Scandals and the Agency Problem
- Corporate Governance and Corporate Social Responsibility (CSR) Reporting
- The Three Main Financial Statements: Income Statement; Balance Sheet; Statement of Cash Flows
DAY 2
Analysing the Annual Report And Accounts
- Using Ratio and other analyses of the Annual Report and Accounts to Assess Financial Position and Financial Performance
- Profitability and Cost-Volume-Profit (CVP) Analysis
- Efficiency and Working Capital
- Liquidity and the Short-term Solvency
- Investment and Growth
- Financial Structure and Long-term Solvency
- Ratio Analysis using Excel
- Excel Trend Analysis using common-size Horizontal Analysis and Vertical Analysis for comparability
DAY 3
Analytical Tools, Cash vs. Profit and the Cash Forecast
- The Dupont System of Ratio Analysis, and Pyramids of Ratios
- Segmental Analysis and Value Added Analysis of the Annual Report and Accounts
- The Fundamental Statistical Tools and Graphical Representations
- Using Statistical Techniques to Analyse and Forecast Financial Data
- The Impact of Alternative Asset Valuation Methods on the Balance Sheet and Profitability
- Cash Flow vs. Profit – The Best Measure of Financial Performance
- Working Capital and the Cash Flow Operating Cycle
- Direct and Indirect Cash Flow Analysis and the Cash Flow Forecast
DAY 4
Financing the Business, Capital Investment Project And Business Valuation
- Analysis of the Balance Sheet to Identify Long-term Debt and Equity, and Short-term Financing
- Capital Cost Models: cost of equity using dividend growth and Capital Asset Pricing Model (CAPM); cost of debt
- Weighted Average Cost of Capital (WACC)
- Optimal Capital Structure Models to Minimise WACC
- Future Values, Present Values, and Discounted Cash Flow (DCF)
- Using Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR) and Equivalent Annual Cost (EAC) to Analyse and Evaluate Capital Projects
- The Reasons for Business Valuations
- Business Valuation Models
DAY 5
Analysing And Predicting Corporate Failure, Business And Financial Risk
- Predicting Financial Distress and Corporate Railure – 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
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