Advanced Financial Statement Analysis Program

Every company’s financial statements tell its story – where its been, where it is now and where its going. Now you can gain a powerful, new understanding of the stated – and implied – information presented in every financial statement. Both probing and fast paced, this seminar employ step-by-step techniques to gain compelling insights into the analysis of various components of the financial statement. You’ll see how to apply sophisticated analytical tools to evaluate current operations as well as anticipate future corporate performance. Most importantly, this seminar will enable you to make decisions that can positively impact your own company’s bottom line.

How You Will Benefit:

  • Revisit the key relationships among the three major financial statements: balance sheet, income statement and statement of cash flows
  • Interpret how business decisions affect the critical interrelationship among the statement components
  • Determine which pivotal business operations are driving these financial statement movements
  • Apply financial rations to analyze trends, competitors, and future economic decisions


Course Outline

Module 1: How to Analyze Earnings Quality

  • How to use the Quality of Earnings Approach
  • Working Approaches to the Description and Evaluation of Quality of Earnings
  • Indicators of Prospective Business Failure

Module 2: Strategies of Analyzing the Balance Sheet

  • Balance Sheet Analysis
  • How to Analyze the Cash Account
  • How to Analyze Receivables
  • How to Diagnose Inventory
  • How to Analyze Prepaid Expenses
  • How to Analyze Investments
  • Evaluating Property, Plant and Equipment
  • Key Problems to Watch for with Deferred Charges
  • Watch Write off of Assets
  • How to Analyze Liabilities

Module 3: Strategies for Analyzing the Income Statement

  • How Meaningful are Real Earnings Figures?
  • How to Evaluate Accounting Policies and Quality of Earnings?
  • How to Diagnose Discretionary Costs and the Lowering of Quality of Earnings
  • How to use Cash Flow Information
  • Evaluationg Residual Income
  • ROI and Risk and Variability
  • Evaluating Management’s Integrity

Module 4: Evaluating the Financial Structure of the Firm

  • Analyzing Stability of Earnings
  • Evaluating Growth Rate of the Firm
  • Analyzing Gross Profit Percentages
  • Evaluating Operating Leverage
  • Evaluating the Product Line
  • Evaluating Risk and Uncertainty

Module 5: How to Determine if a Business is Going Bankrupt

  • Short-term Debt Paying Ability
  • Long-term Debt Paying Ability
  • Appraising the Statement of Cash Flows
  • How Management Can Avoid Business Failure


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