Understanding and Analysing Financial Statements
Prepare for your career progression by improving on your finance literacy
Financial statements contain a wealth of information on the performance and health of an organisation. To harness that information, however, you need to have a sound understanding of the basis upon which financial statements are prepared and the ability to interpret the myriad of data correctly. This information will be the foundation of the various types of business decisions to be committed.
This course provides participants with a good grounding of how financial statements are prepared, interpreted and used to extract critical information for business decisions.
By attending this 2-day course, you will be better able to:
- Gain a comprehensive overview and understand the basis upon which financial statements are prepared.
- Interpret financial statements correctly for different types of business decisions.
- Detect symptoms of potential problems from the financial statements and other relevant parts of the Annual Report of a company.
- Ask the appropriate questions when analysing financial statements.
Unique Features of this training course:
- Ability to apply the key management ratios to evaluate the strengths and weaknesses of the business operations.
- Limited class size to ensure one to one interactivity.
Date: 2 & 3 Mar 2015
- Every member of the Finance team
- Managers or executives who want an incisive understanding of working financial knowledge, especially financial statements
This course is designed to cover the main features of the financial statements prepared by business enterprises. Participants will understand the meaning and fundamental structure of the financial statements, and the inter-relationship of the items in the statements. Thereafter, participants will learn to apply key management ratios to evaluate the strengths and weaknesses of the business operations.
- Corporate accounts, including consolidated accounts, management accounts
- Balance sheet / Statement of Financial Position
- Profit & Loss Statement / Income Statement / Income & Expenditure Statement
- Statement of Comprehensive Income
- Statement of Changes in Equity
- Differences between accounting profit and cash flow
- Trend analysis
- Profitability (Profit Margins, Return on Assets)
- Efficiency (Asset Turn, Fixed Asset Turn, Inventory Turn, Collection Period)
- Solvency (Financial Gearing, Current Ratio, Interest Cover, Debt Service Cover)
- Return on Equity
- Impact of financial gearing on Return on Equity
- Dividend Yield & Dividend Pay-out
- Price-Earnings ratio, Net Asset Value
- Importance of operating cash flow
- Interpreting Cash Flow Statement
- Relevance of Free Cash Flow
- Key points to look out for in financial statements
- Relevance of other parts of the Annual Report
|5.00pm||End of course for Day 1|
End of course
Seminar, class participation, printed materials, supplementary readings, and case studies.
A certificate of attendance will be issued to participants who successfully attended and completed the course.
$1,926.00 (incl GST)