workshop

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


CashOMT