By attending this Best Practices in Financial Analysis, Planning & Control training course, delegates will be able to:

• Explain basic financing concepts, terminology, principles, processes, and procedures that govern how the financial statements are prepared.
• Know the importance of accounting in running businesses.
• Explain the components of an annual report.
• Understand how financial information can be used to analyze business operations and make economic decisions.
• Effectively prepare balance sheets and income statements.
• Analyze a set of financial statements to evaluate the business- financial health.
• Differentiate the financing options available to a business and situations where each might be used.
• How to prepare and implement advanced planning and control techniques into your budgeting process
• Know how to integrate the budgeting process with the development of the company’s long-term strategic vision.
• Know how to provide a decision support structure that provides timely and useful information to decision makers.
• Develop ways to increase profitability and performance through streamlined planning and reporting.

• This interactive seminar will comprise a range of learning activities, including tutor presentations, with the question-and-answer opportunities, demonstration and practice of analytical techniques, group exercises, and discussions, using case studies and market information sources. While the theoretical background to financial management will be explained and justified; the main emphasis will be on putting these into a real-world context by providing a practical -toolkit- of financial techniques.

• Pre & Post course assessments will be used to measure the effectiveness of this training and measure the skill and ability of participants.

• Module 1 – Company objectives & Fundamental of Finance

  • Key Topics:
    • Measuring company performance
    • Introduction to finance: Terminology
    • Purpose of financial analysis and reporting
    • The finance role in running businesses.
    • Walking through an Annual Report
    • The Role of External Auditor
    • Users of accounting and financial information
    • Profit and profitability
    • The Context of Financial Analysis and Decision-making

  Module 2 – Financial Statements

  • Key Topics:
  • • Understanding the Financial Statement
      • Balance sheet
      • Profit and loss account (income statement)
      • Cash flow statement
    • Why are ratios useful?
    • Horizontal and trend analysis
    • Vertical analysis: common size statements
    • Building blocks analysis and reading the numbers:
      • Liquidity ratios: ability to settle short-term dues.
      • Solvency ratios: ability to settle long-term dues.
      • Activity ratios: the ability to manage assets efficiently.
    • Profitability ratios
    • Limitations of financial ratio analysis

   

  • Module 3 – Analysis of Investment Decision
  • Key Topics:
    • Cost behavior: fixed, variable, semi-fixed cost
    • Understanding Cost behavior and types of costs
    • Net Present Value (NPV) and Internal Rate of Return (IRR)
    • Strategic Perspective
    • EVA and NPV
    • Plan for Cost Reduction and Profit Improvement
    • Costing Approaches – Full Absorption, Marginal, ABC
    • Cost volume profit analysis (CVP)
    • Break-even Analysis
    • Dealing with Risk
  • Module 4 – Strategic Management Framework
  • Key Topics:
    • What is a budget?
    • The objectives of budgeting
    • Types of Budgets
    • The budget processes.
    • The Role of Budgeting
    • How to identify problems and limitation of budgetary control
    • Approaches to Budget Development
    • Using budgets to manage organizational performance.
    • Finance and budgeting teams-role in supporting strategic planning.
    • Capital budgeting techniques & Cash Flow
    • Using Activity-based Budgeting
    • Developing the Cash Budget
    • Case study

  Module 5 – Advanced Valuation Techniques

  • Key Topics:
    • Business risk and cost of capital
    • Classifying investment projects
    • Analyzing investment and operating cash flows
    • The time value of money concept
    • The required rate of return
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Multiple internal rates of return
    • Modified Internal Rate of Return (MIRR)
    • Profitability Index (PI)
    • Payback period and discounted payback period
    • Capital rationing.
    • Comparing and evaluating techniques