Course Overview

It is not possible to analyze the performance and position of a company without first understanding where the numbers in the financial statements come from. Hence the trajectory of this course through the accounting rules before the financial analysis. This course is for non-accountants who need to read, understand, interpret and analyze the financial statements of companies. It starts with the basic mechanics of a set of financial statements, continues with the key accounting treatments for important events and transactions before finishing with a thorough financial analysis of the performance and position of the company using a wide variety of metrics, ratios and key performance indicators.

Learning Outcomes

By the end of this training participants will be able to:

  1. Evaluate capital investments, financing options and cash flows
  2. Evaluate business operations, processes, managers and capacity utilization
  3. Use the information provided in financial statements for analyzing the financial performance
  4. Forecast future business conditions

Course Coverage

  1. Accounting fundamentals
  • Cash flow statement basics
  • Income statement basics
  • Balance sheet basics
  • Links and integrations between the statements
  • Dual effect of transactions
  • Retained earnings
  • Practical financial statement construction exercise
  • Cash flow revisited (reconciliation from profit to cash flow)
  1. Revenue recognition
  • Top of the income statement
  • Cash flow vs earnings
  1. Accounting for current assets and liabilities
  • Current assets and liabilities
  • Inventory/stock
  • Receivables/debtors
  • Payables/creditors
  1. Non-current assets
  • Property, plant and equipment
  • Depreciation
  • Revaluations
  • Impairment
  1. Intangible assets
  • Purchased intangibles
  • Research and development
  • Internally generated intangibles
  • Goodwill
  1. Preparation and Presentation of Financial Statements
  • Complete Set of Financial Statements
  • Financial Reporting Standards
  • Balance Sheet
  • Profit and Loss
  • Cash Flow Statement
  • Changes in Equity
  • Accounting Policies and Notes
  • Relationship among the Financial Statements
  • Inherent Limitations of Financial Statements
  1. The financial analysis framework
  • Horizontal Analysis
  • Vertical Analysis
  • Profitability
  • Efficiency
  • Liquidity
  • Solvency
  1. Profitability
  • Growth
  • Margins
  • EPS
  1. Efficiency
  • Working capital days
  • Cash cycle
  • Short term financing
  1. Liquidity
  • Current Ratio
  • Quick Ratio
  • Interest cover
  • Other ratios
  1. Solvency
  • Gearing
  • Leverage
  • Other ratios
  1. Return ratios
  • Assets
  • Equity
  • Capital employed
  1. Financial Forecasting
  • Budgets vs Forecast
  • Run Rate Concept
  • Revenue Forecasting
  • Forecasting cost of goods sold
  • Forecasting fixed and variable costs
  • Forecasting balance sheet accounts


Cost: USD 3,500