Advanced Financial Statement Analysis

This is a fast-paced seminar in advanced financial statement analysis. Delegates should have prior exposure to financial analysis or have successfully completed an introduction to financial analysis seminar. The course includes case problems using spreadsheets that will be explained and worked in class, so delegates should be able to construct basic financial spreadsheets in Microsoft Excel.

The first day focuses on an examination and analysis of a typical manufacturing company’s externally published financial statements to assess current and past financial performance and financial condition. Emphasis is placed on assessing past financial performance, including quality of earnings, cash flows, and balance sheet strength. The second day focuses on forecasting future financial performance and assessing the impact on future enterprise value. The emphasis is on “forward-looking” analysis based on projections of future operating results. Relationships between forecasted financial results and resulting changes in enterprise value are highlighted. The course concludes with specific financial analysis of companies in specialized industries using financial measures commonly used in those industries.

12-Nov-2012 -- 13-Nov-2012ChicagoUSD$2475
NY Institute of Finance - Chicago9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Marc Cherney; ] Mon Tue Level: Advanced

CPE CREDITS
14.0
Financial Analysts; Credit Analysts; Equity Analysts; Financial Accountants; Financial Risk Managers; Portfolio Managers; Government Regulators; Financial Systems Analysis; External/Internal Auditors; Non-financial Executives/Board Members.
No advance preparation required.
Students will be able to:
  • Analyze financial performance
  • Assess the quality of reported earnings
  • Identify balance sheet strengths and weaknesses
  • Perform cash flow analysis
  • Conduct credit and equity analysis
  • Utilize financial forecasting methods
  • Forecast external funding needs
  • Conduct sustainable growth analysis
  • Perform economic value analysis
  • Conduct financial analysis of companies in specialized industries
A fundamental understanding of accounting, financial analysis, and Microsoft Excel spreadsheet software.
  • Introduction to Financial Modeling
  • Financial Modeling for Corporate Finance - Evening
  • Super-Advanced Merger Modeling
    • Module 1: Analysis of Past Financial Performance
    Business Model Analysis
    • Global economic environment
    • Country/region analysis
    • Industry/company analysis
    • Corporate governance/operational risk

    Sustainable Earnings Analysis

    • Recurring vs. non-recurring items
    • Extraordinary items
    • Analyzing business segments
    • Spotting accounting ''shenanigans''

    Cash Flow Analysis

    • Operating cash flows
    • Cash flow from investing
    • Cash flow from financing

    Balance Sheet Analysis

    • Assets and valuation
    • ''Other than temporary'' impairment
    • Liabilities and minority interest
    • Contingencies and other disclosures
    • Supplementary information

    Credit Analysis

    • Liquidity ratios
    • Solvency ratios
    • Profitability ratios
    • Spotting unusual trends
    • Bankruptcy risk models

    Equity Analysis

    • Valuation models
    • Return on investment measures
    • The Du Pont analysis formula
    • Unlocking ''hidden'' value by restructuring or acquisition

    Module 2: Forecasts of Future Financial Performance
    Financial Forecasting and Pro Forma Financial Statements
    • Preparing projected financial statements
    • Sensitivity analysis
    • Projecting financial flexibility
    • Projecting compliance with debt covenants
    • Pro forma financial statements for acquisitions
    • Multi-year projections

    Forecasting External Funding Requirements

    • Sales forecasting methods
    • Building projected income statements
    • Building projected balance sheets
    • Estimating external funding requirements
    • Scenario analysis
    • Determining interest expense

    Sustainable Growth Analysis

    • Sustainable growth equation
    • Dangers of rapid growth
    • Dangers of slow growth
    • Sustainable growth management

    Implications of a Company's Financing Decisions

    • Pros and cons of financial leverage
    • Techniques for analyzing financing alternatives
    • Determining how much to borrow
    • Impact on shareholder value

    Financial Analysis of Specialized Industries

    • Banking
    • Insurance
    • Coal Mining
    • Oil & Gas
    • Electric Power

    Case Problems for Analysis and Discussion

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.