About the Course
Duration
3 Days - Virtual
Course Features
Understand the financial performance of an organization.
Understanding and interpreting financial statements is a fundamental component to the success of any leader. In addition, leaders must be able to measure the financial implications of their decisions, which requires an understanding of financial statement analysis and accounting methods.
This course introduces participants to the essential of financial statement analysis and forecasting. You will learn to interpret financial statements, develop a more comprehensive understanding of how managerial decisions impact the main financial statements, and develop the basic concepts of forecasting future financial statements.
Prerequisite
Finance for the Non-Financial Manager course
Course Objectives
Participants will learn how to evaluate the financial implications of various operating, investing, and financing decisions and activities. By attending this program, participants will:
- Read, understand, analyze, and interpret the three key financial statements in companies and non-profit organizations including income statements, balance sheets, and statements of cash flows
- Apply ratio analysis to assess a company’s level of profitability and financial risk
- Understand how decision and transactions in an organization impact the financial statements
- Understand the basics of forecasting future financial statements, and assess the impact of potential changes to business processes and financial resources
Who Should Attend
- Professionals of any level, and in any function, who make decisions with financial implications, including human resources, finance, sales and marketing, operations, and IT
- Professionals seeking a comprehensive foundation in the fundamentals of finance and accounting to make strategic business decisions
- Individuals assessing potential investment opportunities
Course Agenda
Day 1
8:30 – 9:00am
Registration and Breakfast
9:00am – 12:00pm (including a coffee break)
Morning session: Advanced profitability analysis
- Strategy and industry analysis
- Financial profitability ratio analysis
- Common-size analysis / Percentage change analysis
- Profitability analysis: For-Profit versus non-profit organizations
12:00 – 1:00pm
Lunch and Afternoon Preparation
Afternoon Session: 1:00 – 4:00pm (including a coffee break)
Afternoon Session: Profitability analysis simulation
- Profitability analysis simulation based on Apple Inc. and Johns Hopkins University’s annual reports
- Focus on income statement and statement of cash flow
Day 2
8:30 – 9:00am
Breakfast
9:00am – 12:00pm (including a coffee break)
Morning session: Advanced risk analysis
- Risk ratio analysis
- Short-term liquidity risk
- Long-term solvency risk
- Risk analysis: For-Profit versus Non-Profit organizations
12:00 – 1:00pm
Lunch and Afternoon Preparation
1:00 – 4:00pm (including a coffee break)
Afternoon Session: Risk Analysis simulation
- Risk analysis simulation based on Apple Inc. and Johns Hopkins University’s annual reports
- Focus on balance sheet and statement of cash flow
Day 3
8:30 – 9:00am
Breakfast
9:00am – 12:00pm (including a coffee break)
Morning session: Forecasting financial statements (Basics)
- Forecasting net income (income statement)
- Forecasting assets, liabilities, and equity (Balance Sheet)
12:00 – 1:00pm
Lunch and Afternoon Preparation
1:00 – 4:00pm (including a coffee break)
Afternoon Session: Forecasting financial statements simulation
- Preparation of a 5-year forecast of an income statement and balance sheet
