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Financial statement analysis & interpretation - an integrated approach
Accounting is the language of business and this language has to be understood, and its underlying messages revealed. The financial statements (Balance Sheet, Profit & Loss Statement and Cashflow Statement encapsulate the financial position of a firm’s resources, its results of operations and its cashflow movements; the receipts and uses of cash during the period. Financial tools such as financial ratios, the Dupont Model, the ROE Model, and the "financial limits to growth" model have to be employed to uncover the financial health of the firm.
This course enables you to analyse and interprete financial statements confidently and enhances your knowledge of your firm’s health.
This course enables you to analyse and interprete financial statements confidently and enhances your knowledge of your firm’s health.
Objective
At the end of the course, you will be able to:
- Learn about the accounting framework and the interrelationships between components of financial statements.
- Understand what is financial statement analysis and interpretation
- Articulate the different classes of financial ratios
- Know how to use financial ratios for analysis
- Understand the ratio relationships in the Dupont Model and its limitations
- Understand the ROE Model
- Understand the "financial limits to growth" model and its application
- Learn how to systematically apply an integrated approach to financial statement analysis
Outline
- The accounting framework and the interrelationships between components of the financial statements
- Trend analysis
- Common-sized financial statements
- Introduction to financial ratios
a. Profitability ratios
b. Interest coverage ratio
c. Turnover ratios
d. Leverage ratios
e. Market ratios - Decomposition analysis
- The Dupont Model - illustration & application
- The ROE Model - illustration & application
- The "Financial limits to growth" Model - application & interpretation
- An integrated model to financial statement analysis and Case study
Who should attend
- Newly-appointed Finance Managers
- Finance Managers who want to widen their scope of knowledge and skill sets
- CFO-aspirants
- Finance Managers who seek a refresher course
- Heads of Finance Department
- Finance Manager aspirants
- Finance Managers who want to fill knowledge and experience gaps.
- Relationship Managers (banks)
Methodology
This course will be conducted in an environment conducive to learning where participant sharing, group/individual work and coaching will be applied to reinforce learning. Participants are required to bring along their calculator and laptop (with Excel) to class.
Profile of Michael Matthew Lee
Michael Matthew Lee is a trained teacher, lecturer, C-suite coach, and facilitator, and is himself a life-long learner. Being trained, he is skilful in explaining difficult concepts in a simple and understandable manner. With his more than 40 years of corporate working experience, which include serving as Group CFO of 3 large Main Board public-listed groups, and as CXO (MD/CEO/COO) of various companies across industries, he specialises in Finance and Strategic Marketing, and is exposed to senior executive management practices, issues, and challenges.
He authored the book “The Essence of Corporate Cashflow Sustainability” launched in June 2022 and has written 15 accounting & finance articles. His 2nd book “Corporate Growth & Cashflow Sustainability” was launched on 6th Jan 2024.
Michael Matthew Lee’s credentials are:
Chartered Accountant (ISCA)
Chartered Marketer (CIM(UK))
Associate CVA
MBA (Finance, NUS Business School)
MBA (Strategic Marketing, University of Hull)
BAcc (NUS); DipM (UK); PDipM (APAC); ACTA; PMC. CertEd
ASEAN CPA; FCA(Singapore); FCPA(Aust); FCCA(UK); FCIM(UK); MSID.
