workshop

Advanced Financial Statement Analysis

Advanced Financial Statement Analysis



FUNDAMENTAL ANALYSIS
Financial Statement Analysis
  • Analysis of financial position and financial performance
  • Interpretation of financial statements – key principles
  • Ratio analysis:

Profitability ratios
Efficiency and working capital ratios
Liquidity ratios
Investment ratios
Financial structure ratios
Integration of ratios : Dupont system

  • Common size trend analysis
  • Financial distress
  • The shortcomings of financial statements for analysis

Inventory Analysis
  • Inventory valuation methods and impact on ratio analysis
  • LIFO reserve and LIFO liquidation
  • LIFO to FIFO conversion

Long Lived Assets Analysis
  • Capitalizing vs. Expensing
  • Depreciation methods and impact on ratio analysis
  • Impairment and revaluation
  • Leasing vs. Purchasing
  • Finance lease vs. Operating lease

VALUATION ANALYSIS
Dividend Discount Cash Flow Analysis
  • P/E ratio analysis
  • P/BV ratio analysis
  • P/S ratio analysis
  • P/CF ratio analysis

Capital Budgeting
  • DCF techniques
  • NPV, IRR, MIRR

Corporate Analysis
Capital Budgeting
  • DCF techniques
  • NPV, IRR, MIRR
  • Project valuation
  • Replacement vs. expansion

Capital Structure
  • Debt payout vs. share repurchases
  • Dividend tax assumptions
  • Factors influencing dividend policy
  • Dividend sustainability


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