Financial Analysis and Decision Making Course

Why select this training course?

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.

What is the difference between financial analysis and financial statements?

The company’s financial statements are the income statement, balance sheet, statement of cash flows, and statement of equity changes. The data in these statements are analyzed and interpreted to make decision-making easier. The main distinction between financial analysis and financial statements is that financial analysis involves evaluating and reviewing a firm’s financial statement to make better economic decisions. In contrast, financial statements represent an organization’s inflow and outflow of funds.

The Rcademy Financial Analysis and Decision Making Course are designed for those who wish to learn how to secure and make the most efficient and effective use of funding/capital to manage a business. Financial forecasting, concepts of financial strategy and strategic management, working capital management, and other topics are covered in this course.

Participants will have learned about the various choices for funding a business and how to successfully negotiate economic opportunities by the end of the course. Participants will also learn how to appraise a firm and what securities are needed to fund a business.

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

What are the Course Objectives?

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

How will this Course be Presented?

The Financial Analysis and Decision-Making Course is participant-oriented and designed to meet participants’ expectations and improve their knowledge and skill of the subject matter. Different practical approaches to ensure attendees’ active and constant learning will be utilized to present this course. Renowned experts and professionals who have gathered years of practice and experience will teach the course within the field. The course modules are also drawn from exhaustive and meticulous research into the subject matter.

The Rcademy Financial Analysis and Decision-Making Course integrate practical and theoretical learning by providing attendees with cases, studies, lectures, slides on the concepts, and real-life scenarios. Participants will also engage in presentations, seminar workshops, quizzes, and regular feedback on lessons learned to confirm their optimum satisfaction.

What are the Topics Covered in this Course?

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