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Course Overview

The ability to analyze companies is predicated on a set-of-skills that can only be taught by practitioners and experienced professionals. This course will provide you with the eight-building blocks of financial analysis. Tools and techniques, you can directly apply on any company and different industries. The course focuses on delegates performing actual analysis of publicly traded companies, compiling and analyzing data in team, then presenting their findings and recommendation. Don’t miss this course!

Course Methdology

This course demonstrates core principles in fundamental financial analysis and utilizes Excel in performing modern and creative techniques of financial analysis. Real-life case studies, individual workshops, and team presentations by participants.

Course Objectives

By completely attending this course, participants will be able to:
  • Recognize the building blocks of financial analysis
  • Perform financial statements analysis
  • Design templates and models 
  • Convert the ratio analysis into key performance indicators
  • Appraise the process of company evaluation and analysis
  • Analyze real-life financial statements from companies traded on the world and 'GCC' stock exchanges

Target Audience

Financial analysts, department heads, senior management team members, financial controllers, finance managers, chief and financial accountants, professionals in the field of finance and accounting who perform business analysis and provide financial recommendations.

Target Competencies

  • Financial Analysis
  • Audited financials and the annual report
  • International Financial Reporting Standards (IFRS)
  • Common Balance Sheet Analysis
  • Trend and Horizontal Analysis
  • Liquidity Analysis
  • Operating Ratios
  • Gearing and Solvency Analysis
  • Business and Profitability Analysis
Note:
This course requires the use of laptops with Excel 2010/2013/2016 installed. On any courses conducted in the UAE, VIF will provide laptops to all delegates for the duration of the course. For courses outside the UAE, delegates must bring their own laptops with Windows-based Excel 2010+ fully installed.

Course Outline

Components of Financial Statement Analysis

  • Role of financial reporting and analysis
  • Core financial statements and the importance of the annual report
  • The important role of notes and supplementary information
  • Objectives of financial statements audit
  • Types of audits
  • Financial statement analysis framework
  • The accounting cycle
  • Financial reporting mechanics
  • Relationship, elements and classification of financial statements

Financial Accounting & Reporting Standards

  • Importance of reporting standards in equity analysis and valuation
  • International Financial Reporting Standards (IFRS) versus Generally Accepted Accounting Principles (GAAP)
  • Rules comparisons affecting analysis
  • APPLICATIONS AND PRESENTATIONS OF FINANCIAL STATEMENT ANALYSIS
  • Evaluating a company’s past performance
  • Comprehensive real life analysis of publicly traded companies
  • Comparing different industries

An Inside look at Financial Statements

  • Important income statement elements
  • Gross margin vs. operating profit vs. net income
  • Revenues are earned and expenses are incurred
  • Balance sheet elements
  • The main six (6) parts of the balance sheet
  • Definitions and examples
  • Statement of changes in owners’ equity
  • Cash flow statement:
  • Operating, investing, and financing activities
  • Two (2) methods of preparing cash flow statement
  • Reading and interpreting cash flow
  • The cash rich standard

Financial Analysis Techniques

  • Strategic analysis is vertical analysis: balance sheet and income statement approaches
  • Growth analysis is horizontal and trend analysis
  • Importance of Liquidity analysis
  • Current, quick, and cash ratios, defensive interval and cash conversion cycle
  • Why perform asset management and activity ratios?
  • Total and fixed assets turnover
  • Gearing and Solvency analysis
  • Debt, equity, and times interest earned ratios
  • Business and Profitability analysis
  • Profit margin, gross margin, return on assets, return on equity
  • How good are Market ratios?
  • Price earnings and earnings-per-share ratios
  • DuPont analysis: the three-step and five-step models
  • Limitation of ratio analysis
Location & Dates
Call us at +971 4 430 8394