Fundamentals of Corporate Financial Statement Analysis

Fitch Learning

How long?

  • 2 days
  • online

What are the topics?

Fitch Learning

Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

Reviews

Comprehensive course analysis

Unbiased reviews from past participants
Global companies alumni of this course worked for
Positions of participants who took this course
Countries where most past participants are from
FREE
Individual needs analysis
Order for $20.00

Who should attend

Anyone with an interest in understanding corporate analysis and in need of and introduction of refresher of the fundamentals of financial analysis. Financial professionals in a credit risk, asset investment or relationship management role, as well as those engaged in the assessment of counterparty risk from an underwriting viewpoint or trade debtor exposure. Regulators or those in a supervisory role with an interest in understanding the underlying credit assessment needed in the organizations or departments they assess. This program is recommended for those without an accountancy or financial analysis background and works well as preparation of the corporate credit analysis or related courses.

About the course

This two-day course is designed to explain how financial measures of corporate performance are calculated and used to assess credit worthiness of a business. The course covers the basics of financial statement analysis and enables participants to confidently use financial terminology. This is an introductory level workshop designed for users of financial reports and accounts who have no prior or limited knowledge of corporate financial information; it focuses on the numbers behind the risks rather than the risks themselves.

Key Learning Outcomes:

  • How a company’s business and financing activities are reflected in its financial statements
  • The components of financial statements: Balance sheet, profit and loss and cash flow and key notes to the accounts
  • The distinction between cash flow and profits
  • How to measure operating, investing and financial performance using appropriate ratios and cash flow tools

COURSE CONTENT

Day One

Introduction

Validation of the need for financial analysis and a realization of dependency on external accountant reports.

  • Financial analysis as a fundamental tool of credit risk analysis
  • Financial reporting and accounting standards

Core Financial Statements

Methodological assessment of the key financial accounts and the way they complement each other.

  • Overview of the types and presentation format of financial statements
  • Key accounting principles; consolidation and company accounts
  • IFRS or US GAAP presentation of company financial statements focusing on the key statements needed for financial analysis:
    • Statement of financial position
    • Statement of comprehensive income
  • Application: Create a set of accounts by reporting step-by-step actions
    • Statement of cash flow
  • Application: Derive a simple cash flow statement
    • Statement of changes in equity
    • Notes to the accounts
    • Accountants opinion
  • Application: Illustration case study

Financial Analysis

Using information from the financial statements to assess financial performance and financial leverage of a corporate. Introduction of key financial ratios which can be used in the assessment.

Business and Operating Appraisal

Using information from the financial statements to assess financial performance and financial leverage of a corporate. Introduction of key financial ratios which can be used in the assessment.

  • Accounting for revenue and expenses
  • Capitalized expenses
  • Income from associates and income attributed to minority interest
  • EBITDA, EBITDAR, and Funds from Operations
  • Non- operating items and reporting of discontinued operations
  • Ratios to assess the quality and stability of earnings and cash flow
  • Illustration case study: calculate key ratios
  • Key asset categories on balance and off balance sheet
  • The meaning of net working capital
  • Fixed assets, Intangible assets
  • Depreciation, amortization, depletion
  • Sector specific off balance sheet assets
  • Ratios and cash flow measures to assess the efficient use of existing assets and investment need in assets
  • Illustration case study: calculate key ratios
  • Illustration case study: use ratios, cash flow and peer analysis to assess earning dynamics and asset efficiency.

Liability and Capital Structure

  • Spontaneous finance from suppliers
  • Short term and long term borrowings
  • Off balance sheet and contingent liabilities
  • Provisions
  • Equity and reserves; retained earnings, dividend payments, share repurchases
  • Debt service
  • Ratios to assess the capital structure and debt service capability
  • Application: calculate a debt service coverage ratio
  • Liquidity
  • Illustration case study: calculate key ratios
  • Illustration case study: use ratios, cash flow and peer analysis to assess the funding structure, debt service capability and liquidity.

Final Case study

The case study will allow participants to apply all the tools of financial analysis to a company to make a balanced assessment of its operational performance and funding structure.

Videos and materials

Fundamentals of Corporate Financial Statement Analysis at Fitch Learning

From  1795 GBP$2,358

Something went wrong. We're trying to fix this error.

Thank you for your application

We will contact the provider to ensure that seats are available and, if there is an admissions process, that you satisfy any requirements or prerequisites.

We may ask you for additional information.

To finalize your enrollment we will be in touch shortly.

Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with any business school or university.

Full disclaimer.

Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.

We are happy to help you find a suitable online alternative.