This programme can run as an online or classroom training
(Available also for Customised Training by Duration, Venue & Fee)
What’s the current worth of investment made in the business so far?
How strong is the actual financial position of the company’s operations?
Can shareholders, investors and financiers develop a confidence or still hold their confidence in the business?
The trusted answers to the above questions come from the financial analysis reports that are detailed and authentic. And for these, the financial reports will highlight the strengths, the weaknesses and communicate the financial health of the business.
This training will help the delegates to understand:
the total process of financial analysis
make informed opinions on how to grow the business
use the financial analysis information to attract the interest of investors, if and when that is relevant for the business
value the price or worth of the company’s stock if that is desirable.
Introduction – Assembling Financial Information
A description of the business
Benefits of a Financial Report
A financial fundamental – the Balance Sheet
A financial fundamental – the Income & Expenditure Statement
A financial fundamental – the Cash Flow Position
Analysis of Financial Statements
State of the Balance Sheet
- Current Assets
- Non-Current Assets
- Net Worth
Analysis of the Income Statement (P&L)
- Size of Revenue
- Cost of Goods Sold
- Operating Expenses
- Gross Profit (Operating Income)
Cash Flow Analysis
- Cash Flow from Operations
- Cash Flow from Investments
- Cash Flow from Equity and Other Investments
Diagnosis – Opinions on the Organization’s Performance Status.
Analysis of Capital Expenditure
Capital Expenditures and Depreciation
Capital Expenditures and Incomes.
Assessment of Control Systems
The Internal Control System – Preventive, Detective and Directive
Evaluating Operational Efficiency
- Cash, Cheques and Transfer payments
- State of bank reconciliation
- Stock and inventories
- Fixed Assets.
Analysis of Financial Risks
Pervasive risk factors
Detecting risk of misstatement
Control risk – failure or total absence
Information technology risks
Risk assessment and rankings
Conflicts of interest issues
Contingent financial liabilities
Determining the controls to mitigate risks
Documenting the Financial Risks.
Valuation of the Business
Different approaches to Valuation
- Discounted cash flow valuation
- No-growth or Zero-growth valuation model
- Constant growth valuation model
- Expected return common stock
- One stage Dividend Discount Model
- Two stage Dividend Discount Model
- Three stage Dividend Discount Model
Relative Value Analysis
- Key financial ratios relative to competitors.
The Organization’s Financial Performance
Financial Policies and Controls
Financial Strengths and Weaknesses.