Fundamentals of Financial Analysis

Fundamentals of Financial Analysis: Background accounting knowledge for analysts to help understand the basis of financial statements Analysis of the Balance Sheet: The purpose of financial statements, Analyzing the three statements: Identifying possible ways to initially analyze financial statements, Different formats: UK GAAP, IFRS Analysis of the income statement: Different types of profit metric: Gross profit, operating profit, net profit, Classification of expenses: Cost of sales, operating expenses, Capitalization vs. expense Analysis of the cash flow statement: Capitalization vs. expense, Definitions of free cash flow, How to analyze the cash flow statement: Asset management, operational management, financing strategy Company Appraisal: This case study allows participants to apply the skills learned during the course. Participants will be given a company and are required to prepare an appraisal, based on the annual report and other sources of information. Their analysis should be financial and non-financial, including a summary of the position, performance of the company as well as other analysis.