Advanced Financial Analysis

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.