Financial Performance Analysis

Enhancing shareholder value

• Measuring total shareholder return.
• What is meant by Economic Value Added (EVA)?
• Cost of capital, management of working capital, reduction of net debt.
• What are the appropriate Key Performance Indicators (KPIs) for your industry?

Accounting judgments

• Brand valuation.
• Capital versus revenue items.
• Amortisation, depreciation and revaluation of fixed assets.
• What constitutes an exceptional item?
• Creation and write-back of provisions.
• Implications of International Accounting Standards.

Key management ratios

• Turnover, profit margins and trends.
• Liquidity & current ratio - is a ratio of less than one a warning sign?
• Debt versus equity: what is an appropriate gearing level?
• Interest cover, dividend cover.
• Return on equity (ROE), return on capital employed (ROCE).
• EBITDA return on net operating assets.
• Basic and diluted EPS, p/e ratio, market capitalisation.

Offered either by public seminar or on site.