Financial Analysis and Valuation September 6, 2009

Master the science of financial analysis and keep your profit outlook right on the money.

Accurate financial analysis is a fundamental element of growth, strategy and overall success. During tough economic times, it’s an absolute necessity. Understanding how to use financial indicators and benchmarks allows you to allocate resources and evaluate potential projects for maximum return-on-investment. Financial analysis takes the guesswork out of the planning process and enables you to keep tabs on how your business is performing.

If your job requires a firm grasp of financial situations, then this hands-on comprehensive workshop is for you. You’ll review proven analytical tools and develop a keen understanding of how and when to use them to improve your company’s profit picture.
How You Will Benefit

* Stay current on vital financial indicators and increase your organizational value
* Learn financial forecasting techniques that enable management to make truly informed decisions
* Improve your company's profit picture and your stockholders' investment
* Keep on top of your firm's finances

What You Will Cover

Your Role in Corporate Planning

* Strategic planning
* Capital budgeting
* Financial forecasting

How to Increase Company Value

* Drivers of shareholder value creation
* Economic Value-Added model

How to Evaluate Capital Investment Proposals

* How to use financial forecasting to make accurate evaluations of proposed projects
* Income tax aspects of capital investments
* Alternative investment proposals

How to Measure Management Performance

* Balance sheet analysis—DuPont formula, ROI, ROA, ROE
* Evaluating profit margins, asset turnover (efficiency) and leverage
* Income statement analysis—EPS, ROS
* Past performance and project outcomes
* Benchmarking company performance

How to Use Cash Flow Analysis

* Cash flow from operations, investing and financing
* Ratios and metrics you can use
* Identifying patterns of value
* Interpreting FAS 95— "Statement of Cash Flows"
* Cash flow performance indicators—profitability, liquidity and solvency

How to Interpret and Evaluate Financial Information

* Financial statement analysis
* Managing capital—debt and equity
* What a financial analyst looks for
* Utilizing “Value Line” reports

Capital Asset Pricing Model (CAPM): How to Calculate Present-Value

* The time value of money
* Internal rate of return (IRR)
* Net present value (NPV)
* Calculation of compound growth rate
* Estimation, payback and terminal value
* Discounted cash flow

Who Should Attend

Managers with financial responsibility or seeking a refresher in analysis—including financial analysts, accountants, project managers, budget analysts, vice presidents of finance, controllers and treasurers.

Note: Please bring your organization’s financial statement and a financial calculator.
Extended Training Description

Learning Objectives

* Analyze Financial Statements
* Apply Financial Analysis Methods and Tools to Measure Performance Against Internal and External Standards and Industry Benchmarks
* Make Sound Decisions Based on Accurate Assessments of Business Performance and Results
* Ask Better Questions to Gain a Clearer Understanding of the Business, and Focus Attention on Areas of Greatest Impact
* More Effectively Manage Value in the Business

The Nature of Financial Analysis

* List the Principal Questions Answered By Financial Analysis
* Identify the Financial Statement Sources of Data Used in Financial Analysis
* List the Major Tools Used in Financial Analysis

The Planning Cycle

* Identify Components of the Planning Cycle
* Describe the Role of the Financial Analyst

Income Statement and Balance Sheet

* Identify Key Accounts and Subtotals of the Income Statement
* Identify the Major Sections of the Balance Sheet and How Analysts Use Them
* Explain Why Companies Own Assets and How They Pay for Them
* Use Common Size Financial Statements

Measurement of Performance

* Calculate the Solvency Ratios, Liquidity Ratios, and Profitability Ratios
* Explain How Ratios Relate to the Creation of Shareholder Value
* Define How Growth Rates Are Used to Indicate Performance

Cash Flow

* Analyze a Company’s Gross Cash Flow from Operating, Investing and Financing Activities
* Describe Why an Analysis That Fails to Take Cash Flow into Account Is Inadequate
* Define a Company’s Free Cash Flow
* Use Cash Metrics to Measure Value Creation

Creating Shareholder Value

* Calculate a Company’s Weighted Average Cost of Capital and Total Capital in Accordance with CAPM
* Use Bond Rating Information to Manage Leverage

Analyzing Enterprise Investments: The Theory of Interest and the Time Value of Money

* Use a Financial Calculator
* Calculate Future Value, Present Value, and Compound Growth Rates
* Calculate the Present and Future Value of an Annuity and Annuity Payments
* Calculate and Understand Internal Rate of Return
* Calculate the Present Value of a Perpetuity

Analyzing Enterprise Investments: Capital Project Evaluation

* Define the Steps Necessary to Perform a Capital Project Evaluation
* Create a Spreadsheet to Describe a Project
* Choose a Hurdle Rate for a Project
* Apply the Major Techniques: NPV, IRR, EPVI, Payback
* Give a Definition of Terminal Value
* Price an Acquisition

Official Website: http://www.focustraco.com/index.php/tm-training-schedule/details/245-104203