Introduction

This interactive GLOMACS Advanced Financial Statements Analysis training course is designed to enhance your ability to analyze financial data, assess business operations, and identify key risks in today’s volatile economic, political, and physical global landscape. Participants will learn the essential steps for analyzing financial statements, evaluating investment opportunities, and measuring organizational performance. Throughout the course, you’ll connect theoretical knowledge to real-world challenges, fostering your capacity to drive growth and profitability while identifying areas needing improvement. You’ll also gain valuable financial skills and technical insights to enhance your management effectiveness.

Every organization publishes annual financial statements—income statements, balance sheets, and cash flow statements—but what do they truly convey? Are they reliable? How can they empower you to manage your organization more efficiently and profitably?

You might feel confident in your financial acumen, but it’s time to reassess—financial literacy is vital for all non-financial managers, not just accountants and financial experts.

This GLOMACS training course will cover:

– The significance of annual reports and other key financial information sources
– A variety of tools and techniques for analyzing and evaluating financial health and performance
– Effective acquisition and management of financial resources
– Assessment of capital investment projects and business valuations
– Management of business and financial risks

 Objectives

By the end of this GLOMACS training program, participants will be equipped to:

– Analyze and interpret an organization’s annual reports and accounts
– Employ ratio analysis to assess financial health and performance
– Use analytical techniques to forecast future outcomes
– Critically assess how accounting policy choices impact financial standing
– Recognize the effects of profit, cash flow, and risk on capital investments and valuations

 Training Methodology

This GLOMACS Advanced Financial Statements Analysis course employs workshop principles, incorporating formal presentations alongside practical illustrations and relevant case studies. Interactive group exercises reinforce learning and application of financial tools in real-world contexts, supported by the instructor’s extensive experience in financial statement analysis. Group discussions will encourage the sharing of insights and experiences. Complex mathematical concepts will be simplified and presented visually for ease of understanding, making for an enjoyable learning experience.

Organizational Impact

Participants will return to their organizations with enhanced knowledge and skills that provide significant benefits, including:

– Greater awareness of the importance of financial statements
– Proficiency in tools and techniques for monitoring and improving performance
– Ability to identify problem areas and propose practical solutions
– Improved financial analysis for informed decision-making
– Insight into the effects of financing on capital costs, investment projects, and valuations
– Skills for identifying and managing business and financial risks

 Personal Impact

Attending this GLOMACS training course will significantly improve your financial analysis capabilities, leading to:

– A deeper understanding of finance and accounting terminology
– Increased familiarity with financial analysis tools and techniques
– Recognition of the importance of cash flow compared to profit
– Enhanced confidence in addressing new challenges
– Skills for identifying and managing risks and other critical issues
– Opportunities to exchange ideas and knowledge with fellow professionals

 Who Should Attend?

This GLOMACS Advanced Financial Statements Analysis course is suitable for a diverse audience from various sectors, including:

– Finance, Accounting, Costing, Budgeting, and Planning professionals
– Project Managers and other industry professionals
– CFOs, Controllers, and Treasurers responsible for financial management
– Managers seeking to refresh and enhance their understanding of financial analysis and decision-making
– Senior Accountants

Course Outline

Day 1: Introduction to Advanced Financial Analysis
– Importance of financial data analysis
– Key users of financial information
– Sources of financial information
– Purpose and structure of annual reports
– Issues of creative accounting and corporate governance
– Overview of the three main financial statements:
– Income Statement
– Balance Sheet
– Statement of Cash Flows

Day 2: Analyzing the Annual Report and Accounts
– Ratio analysis for assessing financial health and performance
– Profitability and Cost-Volume-Profit (CVP) analysis
– Efficiency, liquidity, and investment evaluation
– Financial structure and long-term solvency
– Ratio analysis and trend analysis using Excel

Day 3: Analytical Tools and Cash Management
– Dupont analysis and pyramids of ratios
– Segmental and value-added analysis
– Statistical tools and graphical representations for financial forecasting
– Cash flow versus profit: which is the better performance metric?
– Working capital management and cash flow forecasting

Day 4: Financing and Capital Investment Valuation
– Balance sheet analysis for debt and equity
– Cost of capital models and optimal capital structures
– Present and future value concepts; discounted cash flow analysis
– Capital project evaluation using NPV, IRR, MIRR, and EAC
– Business valuation techniques

Day 5: Risk Analysis and Predicting Corporate Failure
– Predicting financial distress using the Altman Z-score model
– Understanding risk and uncertainty
– Risk analysis techniques: expected values, standard deviation, sensitivity analysis
– Tools for managing systematic and unsystematic risks
– Mitigation strategies using insurance, hedging, and derivatives

This course promises a thorough exploration of advanced financial analysis techniques, equipping participants with the knowledge and skills necessary for effective financial management.