Financial analysis - Beginner Level
Overview:
Introduction:
This training program aims to equip participants with fundamental skills and knowledge to understand financial statements, perform basic analysis, and make informed financial decisions.
Objectives:
By the end of the training, participants will be able to:
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Understand key financial concepts and terminology.
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Analyze financial statements to assess business performance.
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Apply basic financial ratios for analysis.
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Interpret cash flow statements and budgeting processes.
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Gain insights into financial decision-making.
Target Audience:
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Aspiring finance professionals
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Small business owners
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Students in finance or accounting fields
Outlines:
Unit 1
Introduction to Financial Analysis:
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Definition and Importance of Financial Analysis
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Key Financial Terminology
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Overview of Financial Statements
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Users of Financial Analysis
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Ethical Considerations in Financial Analysis
Unit 2:
Understanding Financial Statements:
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Income Statement: Structure and Components
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Balance Sheet: Assets, Liabilities, and Equity
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Cash Flow Statement: Understanding Inflows and Outflows
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Notes to Financial Statements
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Limitations of Financial Statements
Unit 3
Financial Ratios and Analysis Techniques:
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Introduction to Financial Ratios
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Liquidity Ratios: Current and Quick Ratios
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Profitability Ratios: Gross Margin, Net Margin, and ROE
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Efficiency Ratios: Asset Turnover and Inventory Turnover
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Solvency Ratios: Debt to Equity and Interest Coverage
Unit 4:
Cash Flow Analysis and Budgeting:
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Importance of Cash Flow in Financial Analysis
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Analyzing Cash Flow Statements
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Operating, Investing, and Financing Activities
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Budgeting Basics: Types and Purposes
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Variance Analysis: Comparing Budgeted vs. Actual Figures
Unit 5
Making Informed Financial Decisions:
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Introduction to Capital Budgeting
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Time Value of Money: Present and Future Value
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Break-Even Analysis
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Financial Forecasting and Projections
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Understanding Financial Risks and Returns