Financial Statement Analysis Course

This course is oriented around interpreting financial results of live companies and financial institutions so candidates can gain a solid understanding of financial statements. It provides the participants optimal blend of accounting instructions needed to prepare them to be well-rounded financial professionals. They will build simple financial statements using a list of transactions.

Course Contents

Day One

Module 1: General Introduction to Financial Statement Analysis

• Financial Statements Introduction
• Components of Financial Statements
• Users of Financial Statements
• Qualities of Financial Statements
• Usefulness of Financial Statements ratios.

Module 2: General Company Analysis

• Profitability Analysis
• Liquidity / Solvency Analysis
• Investment Analysis
• Management Efficiency Analysis
• Gearing and Capital Structure Analysis
• Financial Stability Analysis.

Day Two

Module 3: Banks Financial Statement Analysis

• Capital Adequacy Analysis
• Asset Quality Analysis
• Management Efficiency Analysis
• Earnings Analysis
• Liquidity Analysis
• Other Issues in Bank Analysis
• Analyzing the financial performance of other Financial Institutions.

Module 4: Qualitative Issues in Financial Statement Analysis

• Limitation of Ratios
• Basis of Ratios Comparison
• Qualitative Factors To Be Considered In Financial Statement Interpretation
• Competitors Ratios
• Tax Matters and other regulatory issues
• Age of fixed assets
• Employee quality.

Day Three

Module 5: Window Dressing of Financial Statements/Creative Accounting

• Looking Beyond The Figures
• How Companies Manipulate Financial Statements
• Why Companies Manipulate Financial Statements
• Discovering Window Dressing
• Consequences of financial statements manipulations
• Auditors Roles and Limitations.

Module 6: Predicting Business Failure Using Financial Statements

• Why Business Fails
• Financial Distress and Games
• Predicting Corporate Failures
• Altman Z Score
• Comparative Financial Statements
• Base Year Financial Statements
• Common Size Financial Statements