Financial Data Analysis Understanding & Interpreting
Course Details
Objectives
• Learn how to understand the content of, and relationships between, financial statements (income statement, balance sheet, and statement of cash flows)
• Learn how to use financial statements to evaluate the financial/strategic performance of an organization
• Understand discounted cash flow (DCF) techniques and their application to financial decision-making
• Identify key success factors, weak financial signals, and strong financial signals in your own industry sector
• Understand how EVA® (Economic Value Added), SVA (Shareholder Value Added), RONA (Return On Net Assets), and more
• Define the value creation/destruction process in mergers and acquisitions from the market perspective and signals to management from the market
• Learn how to build a budget that’s works and the variations
• Identify sources of financial and business data that provide insights into business and financial strategies
• Use and build EXCEL spreadsheets for financial analysis: from the basics through complex models
• Enhance personal networks of similarly minded high potential personnel
Outline
Getting started with Financial Analysis
• The role and responsibilities of financial management
• The relationship between accounting and finance in analysis
• A review of the basic financial statements and their roles
• Why ROI is still a good place to start
• Identifying key success factors in your industry sector
• Ratios: what they are, which ones to use and why
• Financial review compared to targets and expectations
• Financial performance measurement systems
• Key accounting assumptions
Moving beyond the basics in financial analysis
• The two kinds of Free cash flow (FCF)
• Altman’s Z-Score and what it really means
• Du Pont analysis and what it tells us
• Scenario analysis: how to calculate it and what it tells us
• Sensitivity analysis: how to calculate it and what it tells us
• Trend analysis: when is a trend a trend? What to do?
• Improving Return on Equity (ROE)
Evaluation of the information
• How do I interpret these details?
• What are the important metrics and why?
• Annual reports, footnotes and beyond; what can they signal?
• Short-term success evaluations process and measures
• Industry data, sources and uses
• Benchmarking for evaluation purposes
• EVA, RONA, EBITDA, etc: what do they mean and how to use them?
• Calculating the results of analysis
Budgeting and the Management Process
• Strategy – direction and vision
• Implementing strategy – the operational planning process
• Budgets – the financial expression of the operating plan
• The purpose of budgets – control
• The human side of budgeting
• Elements of the budget framework
• Advantages and limitations of budgets
• Reporting – the key to control
Completing the budget using the tools we have learned
• Assumptions
• Master budget
• Pro forma financial statements: Income statement, balance sheet, cash flow statement
• Capital expenditure (CapEx) budget
• Sales & marketing budget
• Production budget
• General and Administrative budgets
Who Should Attend ?
Finance professionals from all sector
