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Course Overview
In today’s data-driven business environment, mastering financial statement analysis is essential for informed decision-making. This course equips professionals with advanced tools to dissect financial reports, identify performance trends, and assess company health. Ideal for finance professionals seeking to deepen their analytical capabilities, the course bridges foundational knowledge with practical insights critical for strategic planning and investment evaluation.
Course Objective
- Interpret core financial statements to extract meaningful business insights.
- Apply ratio analysis to assess liquidity, solvency, and profitability.
- Evaluate revenue recognition and expense classification impacts.
- Perform asset valuation using fair value and depreciation methods.
- Analyze cash flows and apply free cash flow calculations in decision-making.
Who Should Attend??
- Financial Analysts
- Corporate/Strategic Planning Staff
- Financial Accountants
- Management Accountants / Controllers
Course Outline
Module 1: Overview of Financial Statements
- Understanding Balance Sheet, Income Statement, Cash Flow Statement
- Significance and Interconnection of Financial Statements
Module 2: Key Financial Ratios
- Liquidity Ratios: Current Ratio, Quick Ratio
- Solvency Ratios: Debt to Equity, Debt Ratio
Module 3: Income Statement Components
- Revenue Recognition Principles
- Profit Analysis: Gross, Operating, Net
Module 4: Expense Recognition and Profitability Ratios
- Types of Expenses
- Calculating and Interpreting Profit Margins
Module 5: Balance Sheet Components
- Asset Classification: Current vs. Non-Current
- Liabilities: Short-term vs. Long-term
Module 6: Asset Valuation Techniques
- Depreciation and Amortization
- Fair Value vs. Historical Cost
Module 7: Cash Flow Statement Analysis
- Operating, Investing, Financing Activities
- Direct vs. Indirect Cash Flow Methods
Module 8: Free Cash Flow Calculation
- Operational Cash Flow minus Capital Expenditures
- Cash Flow Ratio Analysis
Module 9: DuPont Analysis and Earnings Quality
- Decomposing Return on Equity
- Evaluating Earnings Sustainability
Module 10: Real-World Applications and Case Studies
- Financial Analysis in Investment Decisions
- Interpreting Reports from Actual Companies
Training Methodology
The course combines various teaching methods, including instructor-led presentations, group discussions, case study analyses, and assessments through quizzes and a final exam to engage participants and ensure they understand and retain the material.