The main areas covered are:
- Contents of accounts.
- The profit and loss account and balance sheet.
- Ratio analysis.
- Cash flow analysis.
- IFRS, IAS and the IASB.
- Time value of money.
- Discounting cash flows.
- Overview of financial management.
- Introduction to spreadsheets.
- Developing forecasts.
- Presenting financial information.
Who should attend:
The course is ideal for those persons seeking a proper grounding in the fundamentals of financial analysis and forecasting, including:
- Business Analysts.
- Equity Analysts.
- Commercial Bankers.
- Managers.
- Consultants.
- Entrepreneurs.
- Financial Trainees.
- Others interested in finance.
Course Background
Financial analysis and forecasting is an intensive five-day course presented by chartered accountant Timothy Jury F. C. A. It is designed to provide those wishing to acquire an introduction to accounting and financial Analysis with the knowledge required. The course is in the style of a series of presentations interspersed with case study material. Delegates are required to carry out a significant amount of financial manipulation and will involve the use of spreadsheet software in a number of cases. The case studies are designed to enable the delegate to take ownership of the knowledge offered by applying it to a case immediately after the relevant presentation. This is further reinforced by the completion of group cases towards the end of the course.
The course is ideal for managers, analysts, consultants, entrpreneurs and others who seek a proper grounding in the fundamentals of financial analysis and forecasting. Delegates should have with them a simple calculator for use in financial analysis cases (a specialist financial calculator is not necessary). A portable computer with spreadsheet software is required to complete a number of cases. Whilst the course is not explicitly designed as a spreadsheet software training course delegates less familiar with spreadsheets should be able to develop their spreadsheet knowledge from the case study material offered in the course.
Delegates are encouraged to ask questions and develop their knowledge by enquiry. The presentation style is intensive, inclusive and informal. In the pre-course period delegates are expected to read from cover to cover a complete set of published statutory accounts.
Day 1
Dealing with the fundamentals
Introduction to financial analysis
- Differences in UK/US accounting terminology.
- Identifying the relationship between cash flow and profit.
- Development of an integrated cash flow model.
- Recognising it’s all about cash.
- Understanding the relationships between the three main accounting statements.
Exercises. Accounting terminology
Fundamentals of accounting statements-the profit & loss account
- How the P&L has changed over the last 25 years.
- Detailed review of the Profit and Loss Account including explanation of all significant accounting terminology.
- Profit types - trading, asset and business.
- Inventory, Depreciation, Capitalised interest.
- Minority interests and consolidation.
- Exceptional and material items.
Fundamentals of accounting statements-the balance sheet
- Detailed review of the Balance Sheet including explanation of all significant accounting terminology.
- Understanding the fixed assets note.
- Accounting goodwill – what is it?
- Liabilities, pension fund accounting.
- Debt and other liabilities like debt.
- Deferred tax, contingent liabilities.
Finanial analysis techniques - ratio analysis
- Objectives of ratio analysis.
- Developing ratio analysis skills.
- Different types of ratios.
- How much information is there in ratios?
- Ratio rules – avoiding errors of principle.
Case study - Use of ratios
Delegates match ratios to different types of businesses
Delegates consider what ratios do and don’t tell us
Day 2
Cash flow analysis and accounting issues
Understanding cash flows
- Detailed review of the Cash Flow Statement.
- Analysing and interpreting cash flows.
- Summarising cash flows for analysis.
Case study - Summarising cash flows
Delegates summarise cash flows for analysis purposes
Cash flow analysis
- The four phases in the life of a business.
Case study - Examining patterns of cash flows
Delegates match cash flows to sectors
Cash flow analysis- taking it further
- Dealing with the consequences of growth and no-growth.
Case study - Growth & no-growth cash flows
Delegates restate cash flows to improve their understanding of performance
Global accounting in the new century
- Overview of the International Accounting Standards Board.
- The implications of the IAS Initiative.
Review of new standards produced in the last five years
Day 3
Financial mathematics and project analysis
The time value of money
- Present & future values.
- Defining the discount factor.
Exercises. Discounting calculations
Net present value - developing the concept
- NPV’s & varying future cash flows.
- Perpetuities & Annuities.
Exercises. Annuities and perpetuities
Project analysis
- Introduction to project analysis.
- Developing a forecast of the project cash flows.
- Identifying the key risk areas.
Evaluating capital investment projects
- Discounted cash flow techniques.
- Calculating the internal rate of return.
Case study - Speculative housing project
Delegates perform investment appraisals to decide whether to proceed with a capital investment
Case study - Eight Projects
Six delegates evaluate a number of projects and decide which projects should be pursued and which rejected
The responsibilities of management
- The essential aspects of the management task.
Case study - Management information
Delegates review and manipulate management information using Excel
Costing and break-even analysis
- Fixed and variable costs.
- Marginal, absorption & standard costing.
Case study - Variance analysis
Delegates review a variance report and consider the possible causes for variances
Day 4
Spreadsheet analysis skills
Introduction to spreadsheets
- Using spreadsheet programmes for business analysis and forecasting.
- The issue of spreadsheet risk.
Introduction to computer forecasting
- Overview of the forecasting process.
- Creating useful models.
- Sales, growth and margins.
- Cost identification.
- Driving the cash flow.
Case study - New low cost airline
Three delegates prepare a spreadsheet summarisingthe forecasted first twelve months performance of this low cost airline and analyse it
Case study - New low cost airline
Delegates identify the break-even of the project and develop a cash flow forecast for the same business
Case study - Financial analysis
Delegates analyse a business and prepare forecasts of future performance
Funding structures
- The relationship between business risk & financial risk.
- The four phases of the corporate life-cycle.
- Identifying appropriate funding structures.
- Recognising the drivers of funding strategies.
Day 5
Case studies and presentation skills
Case study - Business analysis
Delegates analyse a business using the methods presented earlier in the course
Case study - Business forecasting
Delegates value a business using the methods presented earlier in the course
Case study - Financial presentation
In small groups delegates prepare and present a slide based presentation of the salient features gained from the analysis case in session one using spreadsheets and graphical techniques
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The Course Director is a chartered accountant, who qualified with KPMG. He has held main board financial and general management directorships in both quoted and private companies. He has considerable experience of management in turnaround situations and has completed a number of acquisitions, disposals and corporate reorganisations.
Having joined Piccadilly Radio plc, the UK’s second largest independent radio station, he handled all aspects of a Class 1 acquisition and was a main board director during the period of a contested bid for Piccadilly from Miss World plc. Following a corporate recovery assignment he joined a major UK consultancy specialising in training for financial services businesses. He spent over two years developing and presenting corporate credit training for a number of large UK banks. After a further corporate recovery assignment in the textiles industry he became a full time training and strategy consultant offering courses covering all aspects of corporate lending, financial analysis, especially cash flow analysis, accounting, valuation, corporate finance, M&A, strategy and management.
He combines his lecturing career with consultancy assignments in the areas of strategy development, valuation modelling and corporate finance. In house training initiatives have been completed for both the credit and legal functions of Siemens Financial Services – Munich. Other in-house work has been completed for clients such as, Standard Chartered Bank - India, Societe Generale – London, the Brunei Investment Authority – Brunei, Ernst & Young - New York and Paris, and others. He has been involved in graduate and MBA training for London based investment banks such as Deutsche Bank and Barclays Capital. He was responsible for providing financial training for the London office of a substantial American law firm for many years.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
12-15 Aug 2013 (Johannesburg, South Africa)
11-14 Aug 2014 (Johannesburg, South Africa)
A 4-day training program providing you with a completely up-to-date practical analysis of the complex requirements of International Financial Reporting Standards (IFRS).
3-5 Dec 2013 (Johannesburg, South Africa)
A three-day financial training course on the valuation of mining companies.
23-25 Jul 2013 (Johannesburg, South Africa)
3-5 Dec 2013 (Johannesburg, South Africa)
23-25 Jul 2014 (Johannesburg, South Africa)
3-5 Dec 2014 (Johannesburg, South Africa)
A 3 day financial training course on financial modelling in excel.
10-13 Jun 2013 (Johannesburg, South Africa)
This 4-day financial training course deals with questions like – What is so special about corporate governance? How are banks regulated? and includes insights from international experience.
24-27 Jun 2013 (Nairobi, Kenya)
The course provides participants with a working knowledge of the principles and practices of applied corporate finance including: financial analysis, modelling and valuation. This will enable participants to acquire a sufficiently thorough understanding of the subject in order to be able to use the tools and techniques in an effective manner.
22-24 Nov 2013 (Johannesburg, South Africa)
The aim of this intensive 3-day training course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures. Delegates will be introduced to international practice in executing leveraged transactions, which will include due diligence, accounting issues and valuation techniques. Case studies will include opportunities to structure leveraged finance transactions.
25-29 Nov 2013 (Johannesburg, South Africa)
A 5-day case study based workshop exploring more advanced issues in company valuation and financial modelling.
4-7 Jun 2013 (Johannesburg, South Africa)
The practitioners' guide to achieving a successful and effective back office operation.
23-27 Sep 2013 (Nairobi, Kenya)
A 5-day case study based workshop exploring more advanced issues in company valuation and financial modelling.
3-6 Dec 2013 (Harare, Zimbabwe)
Use a systematic approach to achieve a well controlled and cost effective back office by implementing the latest, leading internationally recognised, management techniques.
19-22 Aug 2013 (Lagos, Nigeria)
A 4-day intensive and hands-on training workshop that will provide delegates with a thorough understanding of current topics.
26-28 Aug 2013 (Johannesburg, South Africa)
27-29 Jan 2014 (Johannesburg, South Africa)
25-27 Aug 2014 (Johannesburg, South Africa)
A practical and highly interactive 3-day training course, incorporating numerous case studies to enhance delegates understanding on the production and transformation of agricultural products and their distribution.
19-23 Aug 2013 (Lagos, Nigeria)
A complete guide to IPSAS compliance for public sector organisations.
13-15 Aug 2013 (Johannesburg, South Africa)
A 3–day training course dedicated to the valuation, structuring, financing and negotiating of merger and acquisition transactions.
22-26 Jul 2013 (Nairobi, Kenya)
Finance for Non-Financial Managers is an intensive five-day course designed to provide non-financial managers and others with the knowledge and confidence required to comprehend and participate in financial decision-making and analysis.
7-9 Oct 2014 (Accra, Ghana)
This comprehensive 3-day workshop builds a financial analysis and valuation model through a series of practical stages.
3-5 Dec 2013 (Nairobi, Kenya)
This 3-day programme focuses upon how the toolkit of conventional business analysis can be linked sequentially and logically with the principles of financial economics. It will provide critical insight into how the tools and techniques of conventional business analysis can and must be adapted.
10-14 Jun 2013 (Johannesburg, South Africa)
A complete guide to IPSAS compliance for public sector organisations.
4-6 Mar 2014 (Lagos, Nigeria)
9-12 Jul 2013 (Nairobi, Kenya)
This comprehensive 4-day management course will improve the effectiveness and success of your banking branch network.
8-11 Jul 2013 (Johannesburg, South Africa)
This 4–day Corporate Finance Applications course is
a practical "how to" programme dealing with numerous disciplines within the subject of corporate finance.
3-5 Jun 2013 (Johannesburg, South Africa)
A 3-day intermediate training course with comprehensive coverage of the complexities of accounting and financial components of pensions and other long-term employee benefits.
19-21 Jun 2013 (Nairobi, Kenya)
18-20 Jun 2014 (Nairobi, Kenya)
22-25 Jul 2013 (Lagos, Nigeria)
This 4-day intermediate programme equips investment professionals with practical knowhow of new approaches and new asset classes for today’s investment conditions.
5-8 Aug 2013 (Nairobi, Kenya)
A comprehensive 4-day training course, featuring case studies across a range of industries to help course participants practice corporate valuation techniques.
9-12 Sep 2013 (Lagos, Nigeria)
This 4-day intensive and hands-on raining workshop will provide delegates with a thorough understanding of IFRS reporting requirements.
15-17 Oct 2013 (Lusaka, Zambia)
A 3-day financial training course on corporate loan restructuring. With tough liquidity conditions finance professional are required to quickly identify what is causing borrowers problems and provide the most appropriate and costeffective finance solution.
19-21 Aug 2013 (Johannesburg, South Africa)
A comprehensive 3- day course for all financial professionals in banking, corporate finance,
strategic and financial advisory, consulting, M&A departments and private equity houses.
3-6 Sep 2013 (Lagos, Nigeria)
Use a systematic approach to achieve a well controlled and cost effective back office by implementing the latest, leading internationally recognised, management techniques.
17-20 Jun 2013 (Nairobi, Kenya)
A 4-day course designed to teach delegates sound internal audit skills with respect to Enterprise Risk Management.
23-26 Sep 2013 (Johannesburg, South Africa)
This program covers how to design a successful corporate banking strategy and provide the adequate products and services to the different customers groups. It applies to banks in developed and emerging markets.
21-24 Oct 2013 (Johannesburg, South Africa)
This 4-day workshop takes a hands-on approach to financial analysis and cash flow techniques.
23-25 Jul 2013 (Johannesburg, South Africa)
This 3-day course has been designed to provide the participants with a complete overview of the venture capital industry and its workings.
9-18 Dec 2013 (Johannesburg, South Africa)
Over the course of eight days, delegates will gain a thorough knowledge of not only IFRS but also will have the opportunity to gain a deep knowledge in certain critical areas. This intensive and hands-on training workshop will provide delegates with a thorough understanding current topics.
12-14 Aug 2013 (Harare, Zimbabwe)
11-14 Nov 2013 (Johannesburg, South Africa)
This 4-day intermediate programme equips investment professionals with practical knowhow of new approaches and new asset classes for today’s investment conditions.
25-28 Nov 2013 (Nairobi, Kenya)
This 4-day financial training course deals with questions like – What is so special about corporate governance? How are banks regulated? and includes insights from international experience.
24-27 Sep 2013 (Accra, Ghana)
An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.
22-25 Sep 2014 (Dar es Salaam, Tanzania, United Republic of)
An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.
22-25 Apr 2014 (Nairobi, Kenya)
An intensive 4-day programme aimed at audit professionals in banks and other financial institutions.
7-9 Oct 2013 (Lagos, Nigeria)
This comprehensive 3-day workshop builds a financial analysis and valuation model through a series of practical stages.
4-6 Aug 2014 (Accra, Ghana)
This practical and highly interactive 3-day financial training course, which incorporates numerous case studies, provides delegates with a thorough understanding of the syndicated loan market, its process and potential.