Financial statement

analysis
2 Days

Course description Introduction

The course covers
the following topics: Financial statements are used for many purposes. They are used by banks and other financial
institutions to evaluate the financial structure, the credit rating and stability of an organization.
► Accounting Suppliers review them to evaluate credit worthiness. Investors analyze them to assess the
concepts and organization’s cash flow generating potential. Employees may use them, as may potential
financial buyers of a business. How do they do this? Furthermore, many users do not fully understand
statements the underlying concepts of how financial statements are prepared, or how different accounting
► Analysis policies can be used which can significantly affect the presentation of the organization’s
approach financial position that may lead to false conclusions. This course is designed to provide this vital
► Tools and understanding.
techniques
► Ratio analysis Objectives
► Common size The course is designed to provide a detailed understanding of the structure of financial
analysis statements: the balance sheet, the income statement, the cash flow statement and the notes.
► Trend analysis Once these concepts have been explained, participants learn how to analyze the financial
statements using analytical tools from different user perspectives.
► Industry
comparability
analysis Target audience
► Break-even
The course is suitable for participants with some finance and accounting background who
analysis
require an understanding of the principles on which financial statements are prepared and of
► Analysis case the various techniques for analyzing the information reported.
study
Delivery method
The course is case-based, and practical. Participants are required to work on various real life
problems using their own laptop, requiring thorough practical application of all the tools and
techniques learned as well as a final group presentation.

Course leader
The course will be delivered by an experienced EY trainer.

Day 1: Reading STATEMENTS

► Basic accounting concepts and financial statements
► Methods of analysing statements
► Choosing the right method for the given aim
► Horizontal and vertical structure ratios
► Financial ratio analysis
► Evaluating ratios: market and industry analysis, trend analysis, benchmarking
► Case study 1: Reading statements
► Case study 2: performance analysis

Day 2: Financial modelling

► Financial assumptions
► Historical performance and trend analysis for forecasting purpose
► Industry analysis and ratios
► Trend anaylsis
► Building Financial Models using excel
► Scenario analysis and sensitivity analysis
► Case study 3: Financial forecasting

Day 3: Risk, performance, strategy

► Quality of assets
► Quality Of revenues
► Quality of cash flow (operation, investing, financing)
► Key Performance Indicators
► Strategy vs. financial statements
► Valuation Techniques
► Case study 4: Financial analysis for risk, perforamance, strategy, banks, and investors

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This material has been prepared for general informational purposes only and is not
intended to be relied upon as accounting, tax or other professional advice. Please
refer to your advisors for specific advice.

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