Financial Analysis Training Course

Participants can restate reported figures into comparable analytical formats.

• Common-size income statements separating margin movement from revenue growth
• Vertical balance-sheet analysis identifying capital allocation and funding changes
• Trend analysis using indexed values, growth rates and compound growth
• Restating discontinued operations, acquisitions and disposals for comparability
• Separating recurring operations from exceptional and non-operating items
• Analytical adjustments for inflation, foreign exchange and fiscal-year changes

Participants can assess whether reported earnings reflect sustainable economic performance.

• Revenue recognition policies under IFRS 15 and ASC 606
• Cut-off testing signals from receivables, contract assets and cash collections
• Accruals, provisions and reserves affecting earnings persistence
• Capitalised costs, amortisation policies and expense deferral risks
• Non-GAAP measures reconciled to statutory profit and cash flow
• Earnings quality matrix ranking recurring, judgemental and one-off items

Participants can explain cash generation, liquidity needs and financing pressure.

• Operating cash flow reconciled from profit, non-cash charges and working capital
• Free cash flow calculated after capital expenditure, tax and financing needs
• Cash conversion ratio comparing operating cash flow with operating profit
• Direct cash flow analysis using receipts, payroll and supplier payments
• Liquidity sources assessed through cash balances, facilities and asset sales
• 13-week rolling cash forecast built from receipts, payroll and supplier data

Participants can diagnose working-capital drivers and quantify cash release opportunities.

• Cash conversion cycle combining receivable, inventory and payable days
• Receivables ageing analysed by customer concentration, disputes and collection trends
• Inventory turnover tested against demand, obsolescence and supply commitments
• Payables terms compared with procurement practice and supplier dependence
• Working-capital bridge isolating price, volume, mix and timing effects
• Cash release actions prioritised by value, feasibility and control risk

Participants can use ratio systems to explain profitability, efficiency and financial risk.

• Return on equity decomposed through the extended DuPont framework
• ROIC compared with WACC to assess economic value creation
• Gross margin, EBITDA margin and operating margin analysed by driver
• Asset turnover linked to capacity utilisation, pricing and capital intensity
• Current ratio and quick ratio interpreted with operating context
• Peer benchmarking adjusted for accounting policy, business mix and scale

Participants can connect financial performance to operational and commercial drivers.

• Price-volume-mix analysis explaining revenue and gross profit variances
• Contribution margin assessed by product, customer, channel and geography
• Fixed and variable cost classification supporting operating leverage analysis
• Segment disclosures reconciled to consolidated results and central costs
• Unit economics linking customer acquisition, retention and lifetime value
• Driver trees connecting operational metrics to financial statement outcomes

Participants can construct forecast financial statements from explicit business assumptions.

• Revenue forecasts built from price, volume, mix and contract assumptions
• Cost forecasts linked to headcount, capacity, inflation and procurement terms
• Working-capital assumptions translated into receivables, inventory and payables balances
• Depreciation schedules aligned with capital expenditure and asset lives
• Tax forecasts incorporating taxable profit, losses and deferred tax
• Forecast balance sheets balanced through cash, debt and equity plugs

Participants can build an auditable integrated model linking profit, cash flow and financial position.

• Model architecture separating inputs, calculations, outputs and quality checks
• Three-statement links connecting income statement, balance sheet and cash flow
• Circularity management for interest expense, debt balances and cash
• Assumption registers documenting source, owner, date and confidence level
• Error checks for balance-sheet integrity, signs and formula consistency
• Version control and model documentation supporting review and reuse

Participants can value a business using forecast free cash flow and discounted cash flow methods.

• Enterprise value distinguished from equity value and net debt
• Unlevered free cash flow derived from NOPAT, investment and working capital
• WACC calculated using cost of equity, debt and target capital structure
• Terminal value estimated through perpetuity growth and exit multiple methods
• Mid-year convention applied where cash flows arise throughout periods
• DCF sensitivity tables testing growth, margin, WACC and investment assumptions

Participants can use market evidence to triangulate a valuation conclusion.

• Trading comparables selected using business model, growth and profitability criteria
• EV EBITDA, EV sales and price earnings multiples interpreted carefully
• Precedent transactions adjusted for control premiums and market timing
• Enterprise-to-equity bridge incorporating debt, cash and non-controlling interests
• Valuation ranges reconciled across DCF, trading and transaction methods
• Implied multiples checked against forecast quality and strategic rationale

Participants can assess repayment capacity and identify lender concerns from financial data.

• Credit analysis framework covering business risk, financial risk and security
• Debt service coverage ratio calculated from cash flow and obligations
• Net debt to EBITDA assessed against sector norms and volatility
• Interest coverage tested under earnings decline and refinancing scenarios
• Covenant headroom modelled for leverage, liquidity and fixed-charge tests
• Sources and uses analysis tracing borrowing requirements and repayment plans

Participants can assess funding choices and their effects on value, risk and returns.

• Capital structure assessed through debt capacity, flexibility and refinancing risk
• Cost of equity estimated using the Capital Asset Pricing Model
• Debt pricing linked to credit spread, tenor, security and covenants
• Weighted average cost of capital aligned with valuation assumptions
• Dividend policy evaluated against investment needs and shareholder expectations
• Funding alternatives compared using dilution, control and cash commitments

Participants can evaluate investment proposals using cash flow, return and risk criteria.

• Relevant cash flows separated from sunk costs and accounting allocations
• Net present value calculated using project-specific discount rates
• Internal rate of return interpreted alongside NPV and reinvestment assumptions
• Payback and discounted payback used for liquidity and exposure assessment
• Replacement, expansion and mutually exclusive projects compared systematically
• Capital allocation scorecard combining returns, strategy, risk and capacity

Participants can test financial conclusions under uncertain operating and market conditions.

• Base, downside and upside cases built from explicit driver changes
• Sensitivity analysis isolates variables with greatest value and liquidity effects
• Break-even analysis identifies minimum volume, price and margin thresholds
• Monte Carlo simulation concepts applied to uncertain forecast assumptions
• Foreign exchange exposure assessed through transaction, translation and economic effects
• Interest-rate scenarios quantify debt service and valuation impacts

Participants can identify reporting risks and specify analytical control responses.

• COSO Internal Control Framework applied to financial reporting risk
• Related-party transactions examined for pricing, disclosure and governance concerns
• Off-balance-sheet commitments identified through notes, guarantees and leases
• Beneish M-Score indicators reviewed as accounting manipulation warning signals
• Management bias tested through forecast accuracy and recurring adjustments
• Analytical review checklist documenting evidence, exceptions and follow-up actions

Participants can communicate financial findings, uncertainties and recommended actions to decision-makers.

• Executive summary structured around decision, evidence, risk and recommended action
• Financial dashboards selecting meaningful KPIs, trends and variance explanations
• Waterfall charts explain bridges between plan, prior period and actuals
• Tornado charts communicate valuation and forecast sensitivity priorities
• Narrative reporting distinguishes facts, assumptions, judgements and conclusions
• Recommendation papers specify actions, owners, timing and decision thresholds

Participants can build, review and present a complete financial analysis pack supporting a senior decision.

• Financial statement normalisation establishes the analytical starting point
• Integrated forecast model translates operating assumptions into financial outcomes
• Cash flow assessment identifies liquidity requirements and funding options
• DCF and multiples valuation produce a reasoned value range
• Credit, covenant and scenario analysis quantify downside exposure
• Executive presentation defends recommendation, assumptions, risks and action priorities