Advanced Skills In Statistical Reporting And Comparison Tables
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