Finance & Accounts

FA 4 Advanced Financial Analysis

Advanced Financial Analysis

Increase your strategic and financial inputs

Accredited by: LONDON INSTITUTE OF SKILLS DEVELOPMENT SIGNATURE PROGRAMME

Who should attend?

Managers and executives from all sectors who input into strategic and financial planning for their organisation, including those:

  • Newly appointed into a strategic planning role
  • Treasury department managers who wish to increase the strategic role of the treasury function
Course Code:F/A.4
Subject:Finance
Course Fee:£485
Duration:1 week
  • Financial planning practitioners who want to update their skills
  • Managers who want to review their organisation’s performance
  • Budget holders who want to identify trends in expenditure
  • Operations managers who want to know more about how they compare with competitors
  • Senior managers who require greater financial literacy skills
  • Managers facing financial decisions or contribute to a wider planning process
  • Junior Managers, Fresh Graduates & Final Semester Students to acquire a promising career in a reputable organization.

Learning Objectives

By the end of the course delegates will be able to:

  • Go beyond the description of financial performance to calculate and interpret key information
  • Interpret trends shown in each financial statement
  • Comment on their own and competitor’s liquidity, efficiency and funding
  • Assess the influential role of all stakeholders
  • Develop a business funding policy to manage financial risk
  • Evaluate the growing influence of corporate finance on strategy
  • Exploit the growing strategic role in developing competitive advantage

Course Content

Introduction to Financial Analysis and Financial Statements

  • Short quiz exploring participant’s knowledge
  • What is financial analysis and who uses it for what
  • Sources of information
  • Efficient markets theory
  • International Financial reporting standards – the key statements explained
  • Financial performance in the public sector use of ratios

What Financial Analysis Can and Cannot tell you

  • Comparison of analysis techniques
  • Evaluation of performance – comparisons
  • Income statement ratios, common size, profit margin, return on equity etc.
  • Balance sheet ratios, quick ratio, current ratio, debt to equity and more
  • Use of notes to the accounts

Return on Investments and Making Sense of Trends

  • The building blocks of ROI
  • Payback method
  • Net present value method (NPV)
  • Internal rate of return (IRR)
  • Historical comparisons and industry benchmarks

Technical Analysis

  • What is technical analysis and why it works
  • Crowd behaviour concepts
  • Behaviour economics
  • Types of technical indicators
  • Drawing and interpreting trend lines

More Ratios and Practical Exercises

  • Price to earnings ratio, dividend yield, dividend payout ratio
  • The importance of cash flow – how to measure and improve it
  • Gross profit, operating profit, net profit margin
  • Key investor ratios
  • End of week quiz to reinforce learning

How The Shift from Shareholder to Stakeholder Value is Driving Strategy and Decision-Making

  • Value maximisation and stakeholder theory
  • The drivers of shareholder and stakeholder value
  • Linking decision-making to shareholder value – the long-term perspective
  • Ethical dimensions  of decision-making

Funding the Business

  • Capital structure and the cost of capital
  • Funding with equity
  • Retaining profit – dividend policy
  • Funding with debt
  • The main instruments of the capital markets

The Impact of PESTLE on Strategy and Risk Management

  • The components of PESTLE and the impact on corporate finance
  • Porter’s generic competitive strategies
  • Mergers and acquisition – a corporate approach
  • Managing financial risks

An Effective Treasury Function

  • Expanding strategic role of treasury and its role in corporate decision making
  • Price to earnings ratio, dividend yield, dividend payout ratio
  • Leadership skills and training for treasurers
  • The areas where treasury takes a lead role, including: bank relationship management; short-term and long-term borrowing; financial risk management
  • Defining treasury success – KPIs, credit ratings etc.