Understanding Company Accounts

• Fixed assets and depreciation, goodwill and amortisation.
• Liabilities - bank borrowings, provisions, total debt.
• The working capital cycle.
• Five reasons why the balance sheet does not reflect market value.
• Exceptional items and provisions.
• Five profit figures: PBIT/EBIT, EBITDA, PBT/EBT, PAT and retained profit.
• Cash flow statement - why profit does not equal cash.
• Turnover, profit margins and trends.
• Liquidity & current ratio - is a ratio of less than one a warning sign?
• Debt versus equity, interest cover, dividend cover.
• Return on equity (ROE), return on capital employed (ROCE).
• EPS, p/e ratio, market capitalisation.

Our Understanding Company Accounts course can be tailored to meet your specific requirements. You tell us which company accounts you wish to understand and we will use the annual report to provide examples, calculate ratios and help you to interpret performance.

Offered either by public seminar or on site.