Using Financial Analytics to Measure Core Business Performance

Financial reports are a rich data source for analyzing the performance of any organization. This five-part webinar series uses real-life, corporate financial statements to demonstrate how they provide information that reveals the financial health of a business. Develop a solid understanding of what each basic financial statement represents and the techniques commonly utilized by investors to identify an organization’s financial trends and potential for growth. Managers will also benefit from recognizing how financial statements used by external parties reflect the results of internal decisions over time.

Topics

• The structure of accounting and rules for external financial reporting
• Differences between cash basis and accrual basis accounting
• The four primary financial statements
  • Income statement
  • Balance sheet
  • Statement of equity
  • Cash flows statement
• Key operating, investing, and financing activities captured in the financial reports
• Fundamental financial analysis techniques
  • Horizontal and vertical analyses
  • Ratio calculations including liquidity, asset management, solvency and profitability
• Taking a basic analysis a step further
  • DuPont measures of return on assets (ROA) and return on equity (ROE)
  • Introduction to valuation models and economic value added (EVA)

Learning Outcomes

As a result of attending this program, participants will be able to:

• Understand the basic information conveyed by each of the financial statements
• Evaluate the overall financial performance of an entity
• Analyze financial statement data to measure specific business activities and trends
• Appreciate the need for balancing the short-term and long-term stability of the firm