Analysing Financial Statements
This workshop takes you to practice pure technical accounting and finance. It gives you the opportunity to understand financial statements and have a different look at financial statements than other candidates. Once you learn this you will then know and understand the main idea lying in many accounting transactions and concepts.
Course Outline
The course outline answers the below questions:
- What is a horizontal analysis? What is a vertical analysis?
- What is a trend analysis? What is a ratio analysis?
- What is a common size income statement?
- What is a common size balance sheet?
- How to read and analyze the gross profit ratio/net profit ratio?
- Is a high net profit ratio always a good indicator?
- How to study and analyze the operational efficiency of the business?
- How to measure the overall efficiency of firm?
- What are liquidity ratios? How to calculate them and what do they measure/evaluate?
- What are activity ratios? How to calculate them and what do they measure/evaluate?
- What are market ratios? How to calculate them and what do they measure/evaluate?
- What are profitability ratios? How to calculate them and what do they measure/evaluate
- How to measure liquidity and the short term financial position of a company?
- Is the inventory measured efficiently?
- Are the debtors’/clients’ accounts managed efficiently?
- What quality of debtors does the firm have?
- Is the utilization of the working capital efficient or inefficient?
- Is the firm able to meet its interest payments on its debts?
- What is meant by over and under trading and how do I analyze it?
- What is meant by over and under capitalization and how to analyze?
- Can we totally depend on the financial statement analysis?