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Our courses are intended for a global audience, with each one being completely customisable to suit the needs of the individuals it is being delivered to.

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Financial Statement Analysis

  • Accounting, Banking and Financial Markets, Corporate Finance, Equity Markets, Retail Banking, Risk and Credit
  • Duration: Three days
  • Information

    A two day highly participative programme which, assuming no prior knowledge, will impart to the participant(s) a grounding in the principles and practice of accounting, company accounts and financial analysis. The teaching approach will make extensive use of practical examples and case studies.


    After the completing the programme, the participant(s) will be able to:

      Explain the main accounting concepts and standards, the balance sheet, profit & loss account and cash flow statement
      Discuss accounting and measurement methods for stock, debtors, provisions and other major balance sheet items
      Analyse and discuss consolidated accounts
      Describe operational and financial gearing, and their importance to the performance and stability of an enterprise
      Analyse and interpret financial statements of companies and groups, using ratio and trend analysis for profitability, return on capital and solvency indicators
      Outline the development and importance of accounting standards
      Discuss the reliability of financial reports, the risks of ‘creative accounting’ and the role of auditors


    Day One 


    Introduction to Accounting & Financial Statements

    Accounting basics


    •   Different purposes and users of accounting information
    •   Introduction to balance sheet and profit & loss account
    •   Definitions of assets, liabilities and p&l line items
    •   Fundamental accounting concepts
    •   Depreciation, provisions, stock valuation and other adjustments
    •   Cash flow statements and working capital

    Exercises: Practice applying the techniques to simple accounting model


    Understanding complete financial statements

    •   Different legal entities: mutual, partnership, limited company
    •   Share and loan capital of companies
    •   Intangible assets
    •   Consolidated accounts
    •   Overview of company taxation
    •   Notes, reports and other contents

    Exercise: Apply the skills and insights acquired to the analysis of a major UK listed company

    Day Two

    Analysis and Interpretation of Financial Statements


    Reporting standards, audit and interpretation

    •   Role of the auditors
    •   Overview of accounting standards; how they impact reported results
    •   Earnings and balance sheet manipulation; creative accounting and fraud; major impairment provisions

    Case study: Do we believe the numbers? Practical examples of different ways in which the accounts can be manipulated.


    Financial analysis

    •   Introduction to key accounting ratios and analysis
    •   Operational and financial gearing: impact on performance and risk
    •   Interpreting corporate financial structure
    •   Walk-through and discussion of examples

    Exercises and Case study:  Practical applications of the tools and techniques for financial analysis for performance, liquidity and solvency appraisal


    Day Three

    DCF analysis, private equity and M&A

    Financial evaluation and investment maths

    •   Compound interest and time value of money
    •   DCF, NPV and IRR explained
    •   Determining the discount rate; cost of capital
    •   Comparing returns between competing projects

    Exercises:  Practice in use of DCF tools and techniques

    Strategic drivers, deal structures and mechanics of M&A

    •   Different types of M&A transaction
    •   Deal origination, development and execution

    Examples and exercises to practice the techniques discussed

    Business valuation

    •   Enterprise and equity valuation compared
    •   Discounted cash flow valuation method
    •   Multiple-based methods: P/E, EBITDA, industry specific multiples
    •   Precedent transactions and the premium for control
    •   Synergies and cost savings

    Private equity and LBO transactions

    •   Drivers and life-cycle of private equity deals
    •   Types of deal: MBO, MBI, institutional buyout
    •   Equity returns
    •   Debt structure
    •   Private equity funds

    LBO case study

    Register interest

    As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.

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