Basic Financial Analysis

Overview:

Introduction:

This training program is designed to equip participants with fundamental skills and knowledge to understand financial statements, perform basic analysis, and make informed financial decisions.

Program Objectives:

By the end of the program, participants will be able to:

•  Understand key financial concepts and terminology.

•  Analyze financial statements to assess business performance.

•  Apply basic financial ratios for analysis.

•  Interpret cash flow statements and budgeting processes.

•  Gain insights into financial decision-making.

Target Audience:

• Aspiring finance professionals seeking foundational knowledge in financial analysis.
• Business owners wanting to improve their financial decision-making skills.
• Entry-level employees in finance-related roles.

Program Outlines:

Unit 1:

Introduction to Financial Analysis:

• Definition and Importance of Financial Analysis.

•  Key Financial Terminology.

•  Overview of Financial Statements.

•  Users of Financial Analysis.

•  Ethical Considerations in Financial Analysis.

Unit 2:

Understanding Financial Statements:

•  Income Statement: Structure and Components.

•  Balance Sheet: Assets, Liabilities, and Equity.

•  Cash Flow Statement: Understanding Inflows and Outflows.

•  Notes to Financial Statements.

•  Limitations of Financial Statements.

Unit 3:

Financial Ratios and Analysis Techniques:

• Introduction to Financial Ratios.

• Liquidity Ratios: Current and Quick Ratios.

• Profitability Ratios: Gross Margin, Net Margin, and ROE.

• Efficiency Ratios: Asset Turnover and Inventory Turnover.

• Solvency Ratios: Debt to Equity and Interest Coverage.

Unit 4:

Cash Flow Analysis and Budgeting:

• Importance of Cash Flow in Financial Analysis.

• Analyzing Cash Flow Statements.

• Operating, Investing, and Financing Activities.

• Budgeting Basics: Types and Purposes.

• Variance Analysis: Comparing Budgeted vs. Actual Figures.

Unit 5:

Making Informed Financial Decisions:

•  Introduction to Capital Budgeting.

• Time Value of Money: Present and Future Value.

•  Break-Even Analysis.

•  Financial Forecasting and Projections.

•  Understanding Financial Risks and Returns.