Financial Statement Analysis

Service Description

Learning Objectives 1. Understand the purpose and structure of financial statements. 2. Learn to analyze income statements, balance sheets, and cash flow statements. 3. Identify key financial ratios and metrics relevant to board-level discussions. 4. Understand the financial impact of strategic decisions and business performance. 5. Communicate financial insights confidently in boardroom settings. Outcomes By the end of the program, participants will: 1. Confidently analyze and interpret financial statements. 2. Use financial data to evaluate organizational performance and strategy. 3. Engage in boardroom discussions with a strong grasp of financial language. 4. Make informed decisions based on financial insights. 5. Understand the financial risks and opportunities facing the organization. Contents Module 1: Introduction to Financial Statements • Purpose and importance of financial statements in decision-making. • Overview of the three key financial statements: -Income statement. -Balance sheet. -Cash flow statement. Module 2: Income Statement Analysis • Understanding revenue, expenses, and profit. • Gross profit margin, operating profit, and net profit. • Analysing trends and variances for performance evaluation. Module 4: Cash Flow Statement Analysis • Cash flow from operations, investing, and financing. • Identifying cash flow issues and their implications. • Importance of free cash flow in decision-making. Module 5: Financial Ratios and Metrics • Key ratios for boardroom discussions: -Profitability ratios (e.g., ROI, ROE). -Liquidity ratios (e.g., current ratio, quick ratio). -Efficiency ratios (e.g., asset turnover). -Leverage ratios (e.g., debt-to-equity). • Interpreting and applying ratios to evaluate business health. Module 6: Linking Financial Data to Strategic Decisions • Assessing the financial impact of strategic initiatives. • Using financial insights to identify risks and opportunities • Aligning financial performance with organizational goals. Module 7: Effective Communication of Financial Insights • Simplifying financial language for clarity. • Presenting financial data visually (charts, graphs, dashboards). • Engaging stakeholders with compelling financial narratives.