Advanced Financial Statement Analysis (AFSA) program aims at guiding participants in the key steps in analyzing financial statements, appraising new investments and measuring performance of businesses either internally or externally.
The training course covers an examination and analysis of a typical company’s externally published financial statements, as well as the forecasting of future financial performance and assessing the impact on future enterprise value.
- Define the areas in which management makes decisions
- Identify the information contained in the three main financial statements
- Describe the use of financial statements in ratio analysis
- Define how profitability and rate of return on assets are calculated
- Perform calculations of these ratios used in long and short term analysis
- Identify the process of developing pro-forma financial statements.
- The use of case studies will assist participants in transforming theoretical knowledge into practical learning.
This training course will specifically benefit those working in finance and accounts departments or involved with credit and business analysis, investment management and financial decision makers in companies, banks and other financial institutions.
Detailed Program Outline
- Role of Financial Reporting and Analysis
- The Core Financial Statements and the Importance of the Annual Report
- Objective and Types of Audits of Financial Statements
- Financial Statement Analysis Framework
- Relationship, Elements and Classification of Financial Statements
- Financial Reporting Standards
- International Financial Reporting Standards versus Generally Accepted Accounting Principles
- Understanding Financial Statements
- Financial Analysis Techniques
- Ratio Analysis:
- Liquidity: Current, Quick, and Cash Ratios
- Asset Management and Activity Ratios
- Solvency: Debt, Equity, and Times Interest Earned Ratios
- Profitability: Profit Margin, Gross Margin, Return on Assets, Return on Equity
- Market and Valuation: Price-Earnings and Earnings Per Share Ratios
- Vertical Analysis and Strategy: Balance Sheet and Income Statement Approaches
- Trend Analysis and Growth
- Limitation of Ratio Analysis
- Financial Statement Analysis: Applications and Presentations