Financial Analysis:
Evaluation, Budgeting and Decision Making

Accounting & Finance are the language of business, understanding and applying this language to your business and to business in general remains the single most valuable competence of management. Prepare yourself by enhancing your personal competence in financial analysis of the past, problem evaluation of today, and budgeting for the future.

This training course will provide you with vital skills such as financial forecasting, formulation and analysis of different scenarios, and the confidence to speak persuasively and with assurance about your financial analysis with colleagues and clients, thereby enhancing your reputation as a finance expert. By applying these skills to the tasks and challenges you face in your work, you will experience breakthroughs you may never have thought possible.

  • Understanding the content of, and relationships between, primary financial statements (income statement, balance sheet, cash flow statement)
  • Utilizing financial statements to evaluate the financial and strategic performance of an organization
  • Appreciation of discounted cash flow (DCF) techniques and their application to financial decision making
  • Identifying key success factors, early warning signs, and financial momentum signals in your own industry sector
  • Understanding of EVA (Economic Value Added), RONA (Return on Net Assets) and other indicators, as performance metrics
  • Building a realistic budget, under a base case, upside and downside scenarios
  • Identification and utilization of financial and business data sources that give insights into business and financial strategies

Day 1

Getting started with financial analysis

  • The role and responsibilities of financial management
  • The relationship between accounting and finance in analysis
  • Review of the primary financial statements and their purpose
  • The utility of ROI (return on investment) and similar metrics
  • Identifying key success factors in an industry sector
  • Financial ratios: what they represent, and how they can be used effectively
  • Comparing targets with expectations in financial review
  • Financial performance measurement systems
  • Key accounting assumptions
  • Case study: basic analysis example

Day 2

Moving beyond the basics

  • Definitions of free cash flow (FCF)
  • Altman’s Z-score and its meaning
  • Dupont analysis and what it reveals
  • Scenario analysis: deciding on calculations and interpreting output
  • Sensitivity analysis: identifying key variables and making assumptions
  • Trend analysis: identification thereof and implications
  • ROE (return on equity) as an indicator
  • Case study: advanced analysis example

Evaluating information

  • Interpreting new information
  • Focusing on significant metrics
  • Annual reports, footnotes and beyond: deriving signals
  • Evaluating short-term success: process and measures
  • Sourcing and using industry data
  • Benchmarking for evaluation purposes
  • EVA, RONA, EBITDA, etc.: their meaning and utility
  • Calculating the results of analysis
  • Case study: completing and presenting an advanced analysis

Day 3

Budgeting and the management process

  • Strategy: direction and vision
  • Implementing strategy: the operational planning process
  • Budgets: the financial expression of the operating plan
  • The purpose of budgets: control mechanism
  • The human side of budgeting and finance
  • Elements of the budget framework
  • Advantages and limitations of budgets
  • Reporting: the key to control
  • Case study: preparing a budget

Day 4

Outbound Activities Aimed At Improving: 

  • Communication
  • Teamwork
  • Confidence
  • Motivation

Day 5

Completing the budget using acquired tools

  • Assumptions
  • Master budget
  • Pro forma financial statements: income statement, balance sheet, cash flow statement
  • Capital expenditure (capex) budget
  • Sales and marketing budget
  • Production budget
  • General and administrative budgets
  • Case study: completing the budget

  • Finance professionals from all sectors, who are keen to boost their performance and knowledge, skills and reputation in their firms and in the industry
  • Personnel related to, moving into or aspiring to roles in finance that require deeper understanding and intelligent interpretation of financial information

  • Face To Face
  • Role playing
  • Post session assessment
  • Video presentation
  • Case study

  • English
  • Indonesia