About this course
Teaches the techniques used to assess an organisation's financial performance and position from its financial statements. Topics include horizontal and vertical analysis, profitability, liquidity, efficiency, gearing and cash flow ratios, quality of earnings, common-size statements, peer comparison and reading the notes to the accounts. Delegates practise turning analysis into clear conclusions and recommendations.
Why this course
Lenders, investors, procurement panels and managers all make decisions from financial statements, yet ratios are often calculated without proper interpretation. Sound analysis reveals declining margins, liquidity pressure and excessive borrowing before they become crises. It supports better credit, investment, supplier and management decisions.
What delegates will be able to do
By the end of the course, delegates will be able to
- Calculate profitability, liquidity, efficiency and gearing ratios from financial statements
- Interpret trends and comparisons with peers or industry benchmarks
- Analyse cash flow statements to assess cash generation and funding
- Identify warning signs of financial distress or aggressive accounting
- Write a concise financial analysis report with conclusions and recommendations
Who should attend
Accountants, credit and investment analysts, auditors, procurement and supplier evaluation staff, and managers who review financial statements. A basic understanding of financial statements is assumed.
How it is delivered
Practical exercises analysing published annual financial statements in Excel, followed by group discussion and report writing on the findings. It is available as a public course, in-house at your premises, or as live virtual sessions. Duration and dates are confirmed in your quote, and in-house groups can have the examples and exercises fitted to their organisation.