Read and understand their organisation’s Annual Financial Report
Evaluate their firm’s financial performance
Understand and use analytical tools and techniques in practical case-study situations
Use analytical techniques to project future performance
Description
This two day workshop provides a real-world practical context by incorporating worked examples and case studies that delegates will see how theory applies in practice and can discuss the various issues raised
This workshop will feature:
- Read and understand their organisation’s Annual Financial Report
- Evaluate their firm’s financial performance
- Understand and use analytical tools and techniques in practical case-study situations
- Use analytical techniques to project future performance
How will this Workshop be Presented?
This workshop combines theory and practice. We use company examples to illustrate how the techniques presented have been applied in real case studies. The purpose is to use a mix of proven learning techniques to ensure maximum understanding, comprehension and retention of the information presented.
Day One
Introduction to Financial Statement Analysis
- Why do we need to analyse the AFR?
- Using common-size analysis to improve comparability
- Calculating trends and growth patterns
Using Ratio Analysis to assess five key aspects of company performance:
- Profitability
- Liquidity
- Efficiency and working capital management
- Financing structure and risk
Excel skills for Financial Statement Analysis
- Introduction to Excel tools for analysing financial statements
- Case Study on analysis and interpretation of company
Day Two
Financing the Business and Valuing the Business
- Measuring the company’s capital structure, and estimating the costs of capital:
- Cost of Equity (Ke) and Cost of Debt (Kd)
- Weighted Average Cost of Capital (Ko)
- Case study on Cost of Capital calculation
Business Valuation Models
- Net Asset value – balance sheet, replacement cost, or realisable value
- Price / Earnings ratio value
- Dividend growth value
- Present value of future free cash flows
- Case study on valuing a business
Financial distress and forecasting company failure
- The symptoms of financial distress – financial and non-financial factors
- Using ratio analysis to identify financial distress or predict future failure
- Forecasting future failure using ratio combinations – the Altman Z-score model
- Case study on forecasting future failure
