Skills for Advanced Financial Statements Analysis & Evaluation in the Public Sector

Course Overview:

This course will develop your skills in analyzing business activities. It will guide you through the key steps of analyzing financial statements, appraising new investments and measuring performance at all levels of your organization. It will develop your ability to generate growth and improve profitability, as well as pinpoint problem areas for remedial action. Over the five modules, participants will acquire skills and technical knowledge, which will enable them to manage more effectively.

This course will also focus on the key risks that businesses face in today’s uncertain economic, political, and physical environment. Effective risk management is important in today’s business environment and the course will promote the understanding of risks and how to minimize the business exposure to them.

Course Objectives:

At the end of this course, the participants will be able to:

Read and understand their organization’s Annual Financial Report
Evaluate their firm's financial performance
Understand and use analytical tools and techniques in practical case-study situations.
Identify business risks, and consider how these should be managed.
Appreciate the importance of new investments in maintaining growth and competitiveness, and how these investments should be evaluated.
Improve their management skills and increase their value to the organization
Understand capital investment decisions
Increase awareness of techniques in financial analysis and capital appraisal
Increase the ability to identify problem areas
Increase confidence to tackle new situations

Course Coverage:

Topic 1: Introduction to Advanced Financial Analysis:

Who are the users of financial data?
The three key financial statements, measuring performance, position, and cashflow
Why does financial data have to be analyzed?
Sources and types of financial information
Understanding the cash flow cycle vs. the operating cycle
Ratio & trend analysis of financial statements
Categories of ratios, and what they reveal about the company

Topic 2: Financial Statements:

How to use common sizing to compare performance and position
The format and structure of the Balance Sheet / Statement of Financial Position
Sources and types of finance
Preparing projections for financing sources
Break-even analysis
Should we lease or buy our equipment?
Should we consider ‘buying-in’ instead of ‘making’

Topic 3: Analytical & Performance Tools & Techniques:

Finding and using data and information
Easily available tools and techniques for financial analysis
Using graphical representation
The fundamental statistical tools
Fitting statistical techniques to financial data
Reports and reporting
Financial distress
Altman's Z-score analysis & it's uses

Topic 4: Capital Project Analysis:

How new investment projects can meet corporate objectives
Investment projects - model-building and forecasting
Basic techniques for appraisal of investments
Incorporating the value of timing - Net present Value vs. Internal Rate of Return
How do you choose which method to use
Measuring the company’s capital structure, and estimating the cost of capital
The dividend valuation model or the capital asset pricing model, which is best?

Topic 5: Coming to Terms with Risk:

Financial risk-management principles – what can be done
Methods for analyzing financial risk
How your bankers can help you to manage financial risk
Analytical tools for measuring risk
How to develop the tools for your firm
Using scenario, sensitivity & subjective analysis techniques
How to minimize the risk factors we find

Targeted Groups:

CFOs
Finance Professionals
Controllers and Treasurers responsible for the Financial Management in the Organisation
Professionals who wish to improve, refresh and update their understanding of analysis of financial information, and application