Course description
Financial accounting and financial statements play an essential role in every business. When based on reliable information, financial statements aid in making sound business choices. To fully view the company’s financial health, financial records must be preserved and presented professionally.
What is the benefit of financial analysis in decision-making?
Financial analysis is critical in enabling organizations to keep track of their economic activities. It is the method through which businesses record and report the financial data that flows in and out of their operations, allowing corporate executives, outside investors, and analysts to assess the firm’s health and make informed decisions. Additionally, financial analysis enables companies to maintain track of their activities while also providing an overview of their financial health. A corporation can offer investors and lenders more power in their decision-making by presenting data through statements, such as the balance sheet and income statement.
Upcoming start dates
Suitability - Who should attend?
Who Should Attend?
The Financial Analysis and Decision Making Course by Rcademy is suitable for the following professionals:
- Financial officers:in charge of a company’s financial transactions
- Financial analysts:responsible for giving corporations or individuals sound advice on business investment decisions
- Budget analysts:in charge of designing and executing budgets for organizations
- Treasurers:who oversee and present budgets, accounts, and financial statements to the management committee
- Sales and marketing professionals:tasked with finding the most effective methods for attracting clients and generating cash for their businesses
- Managing Directors:tasked with overseeing and reporting to the management committee budgets, accounts, and financial statements
- Internal auditors:entrusted with delivering impartial and independent assessments of the company’s financial and operational operations
- Financial controllers:responsible for drafting the company’s financial report
- Financial accountants:responsible for budgeting, tax payments, and internal audits
- Risk Officers:entrusted with identifying and mitigating major competitive, regulatory, and technical threats to an organization’s capital and profits
- Finance managers:responsible for developing financial reports, direct investment activities, and long-term financial goals
- Investors:that invest money in the hopes of making a profit
- Accountants:tasked with accounting functions such as account analysis, auditing, or financial statement analysis
- Cost estimator:in charge of collecting and evaluating data to determine the amount required to manufacture a product
Outcome / Qualification etc.
The Financial Analysis and Decision Making Training Course by Rcademy are designed to help participants achieve the following:
- Demonstrate a thorough understanding of finance theories and ideas
- Understand the application of finance theories to a variety of decisions, such as strategic management and the formation
- Demonstrate advanced knowledge of how to use financial data to develop meaningful information
- Analyse complex data and evaluate the consequences for decision-making utilizing a variety of financial instruments available to help investment assessment
- Structure assessments about organizational goals, such as resource maximization
- Describe the benefits of corporate financial planning in detail
- Plan development and capital expenditures based on reasonable assumptions and financial requirements
- Improve return on investment by conducting a thorough end-to-end investment evaluation
Training Course Content
Module 1: The Basics of Financial Analysis
- Introduction to financial analysis
- Principles of financial analysis
- Contexts for financial analysis
- Scope of financial analysis
- Financial analysis requirements information
- Requirements classification and traceability
- Vertical and horizontal income statement analysis
- Balance sheet and leverage ratio analysis
- Cash flow statement and ratio analysis
- Rates of Return and profitability analysis
Module 2: Financial Analysis and Decision-Making Process
- Evaluating financial conditions
- Stating financial goals
- Action plan
- Financial goals implementation
- Progress monitoring and control
Module 3: Sources of Finance
- Revenue management
- Gearing ratios
- Debt financing and equity
- The weighted average cost of capital
- Sources of international finance
- Cost of capital
Module 4: Financial Forecasting
- Forecasting financial statement techniques
- Projection of balance sheet
- Cash flow
- Internal growth rate
- Sustainable growth rate
- Simple linear regression method, percentage of sales method, and day sales method
Module 5: Risk Evaluation and Management
- Elements of risk: Systematic and unsystematic risk
- Financial risk
- Business risk
- Profitability analysis
- Projected beta
- Mean-variance analysis: coefficient of variation and standard deviation
Module 6: Working Capital Management
- Working capital policies: levels of working capital investment
- Short-term financing: factoring, bill discounting
- Financial flexibility and managing liquidity
- Profitability/risks trade-off: Aggressive approach to asset financing, conservation, matching
- Working capital control
- Accounts payable
- Accounts receivable
- Reconciliation of sub-ledgers
- Inventory control
- Tax and deferred taxation
- Other current assets & current liabilities
Module 7: Budget Process and Management
- Quarterly reviews
- Preparation of master budget
- Flexible/fixed budgets
- Planning
- Budget/actual comparison
- Zero-based budgets
Module 8: Introduction to Financial Statement Analysis
- Liquidity analysis
- Horizontal analysis
- Solvency analysis
- Vertical analysis
- Profitability analysis
- Asset management
Module 9: Analysis of Balance Sheet
- Equity analysis
- Debt structure analysis
- Fixed assets analysis
- Inventory analysis
- Payable analysis
- Receivable analysis
Module 10: Analysis of Profit and Loss
- Profitability measures
- Analysis of revenue
- Dupont analysis
- Expenses analysis
- Analysis of cost of goods sold
Module 11: Analysis of the Annual Report
- Analysis of management commentary
- Compliance with the accounting standards
- Analysis of accounting policies
- Analysis of the notes on the financial statement
- Compliance with the regulations
Module 12: Predicting the Future
- Forecasting cash flows
- Forecasting balance sheet accounts
- Forecasting fixed and variable costs
- Forecasting cost of goods sold
- Revenue Forecasting
Module 13: Analysis of the Financial Statements Using Spreadsheets
- Cash flow analysis
- Trend analysis
- Financial statement proportional analysis
- Leverage analysis
- Automated ratio result analysis
Module 14: Introduction to Concepts of Financial Strategy and Strategic Management
- Business level strategy: differentiation strategy, cost leadership
- Finance strategic management
- Strategic intent
- Strategic cost management
- Strategy formulation
- Corporate level strategy: retrenchment, expansion strategies
Module 15: Decision-Making and Linking Strategic Management with Financial Planning and Budgeting
- Objectives, mission, and vision
- Corporate governance, corporate objectives, accountability
- Key features of strategic decision-making
- Strategy and strategic management
- Rolling output and implementing strategies
- Management accounting and the links between strategic planning and budgeting
Module 16: Measurement Systems and Costing Systems that Support Financial Decision-Making
- Break-even, Cost-Volume-Profit (CVP) relationships, and sensitivity analysis
- Activity-Based Costing (ABC) And Management (ABM)
- Costs and activities
- Variable costs and fixed costs
- Cost behavior
- Direct and indirect costs
- Refining the costing system for improved decision-making
Module 17: Introduction to Capital Investment Decisions
- Capital rationing, capital budgeting, and the Profitability Index (PI)
- Discounted Cash Flow (DCF), future values, present values
- Capital budgeting principles
- Deciding on which investment appraisal methods to use
- Further factors to consider in investment appraisal
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