Understanding and Analysing Financial Statements

"COURSE OUTLINE Types of Financial Statements Corporate accounts, including consolidated accounts, management accounts Understanding How Financial Statements Are Prepared Balance sheet / Statement of Financial Position Profit & Loss Statement / Income Statement / Income & Expenditure Statement Statement of Comprehensive Income Statement of Changes in Equity Differences between accounting profit and cash flow Assessing Financial Performance & Health Trend analysis Profitability (Profit Margins, Return on Assets) Efficiency (Asset Turn, Fixed Asset Turn, Inventory Turn, Collection Period) Solvency (Financial Gearing, Current Ratio, Interest Cover, Debt Service Cover) Awareness of Common Investment-related Ratios Return on Equity Impact of financial gearing on Return on Equity Dividend Yield & Dividend Pay-out Price-Earnings ratio, Net Asset Value Assessing Cash Flow Importance of operating cash flow Interpreting Cash Flow Statement Relevance of Free Cash Flow Quick Finders in Detecting Risks Key points to look out for in financial statements Relevance of other parts of the Annual Report"