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 Basic Financial Analysis F2790 QR Code
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Basic Financial Analysis

Overview:

Introduction:

This training program is designed to equip participants with fundamental skills and knowledge to understand financial statements, perform basic analysis, and make informed financial decisions.

Program Objectives:

By the end of the program, participants will be able to:

  •  Understand key financial concepts and terminology.

  •  Analyze financial statements to assess business performance.

  •  Apply basic financial ratios for analysis.

  •  Interpret cash flow statements and budgeting processes.

  •  Gain insights into financial decision-making.

Target Audience:

  • Aspiring finance professionals seeking foundational knowledge in financial analysis.
  • Business owners wanting to improve their financial decision-making skills.
  • Entry-level employees in finance-related roles.

Program Outlines:

Unit 1:

Introduction to Financial Analysis:

  • Definition and Importance of Financial Analysis.

  •  Key Financial Terminology.

  •  Overview of Financial Statements.

  •  Users of Financial Analysis.

  •  Ethical Considerations in Financial Analysis.

Unit 2:

Understanding Financial Statements:

  •  Income Statement: Structure and Components.

  •  Balance Sheet: Assets, Liabilities, and Equity.

  •  Cash Flow Statement: Understanding Inflows and Outflows.

  •  Notes to Financial Statements.

  •  Limitations of Financial Statements.

Unit 3:

Financial Ratios and Analysis Techniques:

  • Introduction to Financial Ratios.

  • Liquidity Ratios: Current and Quick Ratios.

  • Profitability Ratios: Gross Margin, Net Margin, and ROE.

  • Efficiency Ratios: Asset Turnover and Inventory Turnover.

  • Solvency Ratios: Debt to Equity and Interest Coverage.

Unit 4:

Cash Flow Analysis and Budgeting:

  • Importance of Cash Flow in Financial Analysis.

  • Analyzing Cash Flow Statements.

  • Operating, Investing, and Financing Activities.

  • Budgeting Basics: Types and Purposes.

  • Variance Analysis: Comparing Budgeted vs. Actual Figures.

Unit 5:

Making Informed Financial Decisions:

  •  Introduction to Capital Budgeting.

  • Time Value of Money: Present and Future Value.

  •  Break-Even Analysis.

  •  Financial Forecasting and Projections.

  •  Understanding Financial Risks and Returns.

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