Interpreting Financial Statements

Category: Interpreting Financial Statements

Course Description

Financial statements provide the basis for many business decisions and are the chief means for conveying information about the financial position of a company to the outside world. Therefore, being able to read and interpret financial statements is a vital skill. However, financial statements are written in manners that confound most people without the needed training, and their complexity has increased with time. This course aims to remove the mystery behind financial statements. It is designed in a manner that people with little financial training will find it enjoyable to learn and easy to understand.

This training program examines and explains, using examples, financial statements and analysis methods for a company. It is also designed to enhance a participants understanding of the three main financial statements namely the Income Statement, Balance Sheet and Cash-Flow Statement. The aim of this training program is to provide a practical introduction to financial statements with an emphasis on relevant interpretation and evaluation techniques. It is intended for professionals who have little or no training in finance and who use company accounts and publicly available financial information to aid marketing, credit, procurement or other business decisions.

Course Objectives

  • Read and understand financial statements
  • Differentiate the various types of Financial Statement and their uses
  • Understand the accounting concept used in preparing the Financial Statements
  • See the underlying business dynamics from the financial perspective
  • List the three stages of the analysis process and how ratios are used and their limitations.
  • Analyse financial statements (profit, loss, gearing, liquidity, interest and tax implications) for public companies.
  • Understand capital structures of a company and how management assesses debt and equity options for investment.
  • Understand the key differences between Return on Assets (ROA) and Return on investment (ROI).

Who Should Attend

Company Directors, Chairmen, Company Secretaries, Senior Managers and those who wish to develop their understanding on the financial statements

Course Outline

  • Cash flow
  • Liquidity
  • Leverage
  • Net present value
  • Tangible assets
  • And dozens more!
  • Common finance terms explained in plain English
  • Understanding the basic of a financial statement
  • The Balance Sheet
  • Analysing the profit and loss Statement
  • Deciphering Other Types of Financial Statements
  • Critical Financial Measurement Tools and Techniques