Course description
Fundamentals of Corporate Financial Statements
This course is designed to explain how financial measures of corporate performance are calculated and used to assess credit worthiness of a business. The course covers the basics of financial statement analysis and enables participants to confidently use financial ratios and financial terminology. This is an introductory level course designed for users of financial reports and accounts who have no prior or limited knowledge of corporate financial information; it focuses on the numbers behind the risks rather than the risks themselves.
Live Online Training
Since 2003, Fitch Learning’s industry experts have been delivering world-renowned virtual training programs to learners across the globe. Benefits include:
- World-class video conferencing technology
- Fully interactive, engage and network with peers using break out rooms, quizzes and polls
- On-hand technical support team throughout
- Attend from anywhere, across four time zones
- Save time and costs on travel
Suitability - Who should attend?
Anyone with an interest in understanding corporate analysis and in need of and introduction of refresher of the fundamentals of financial analysis. Financial professionals in a credit risk, asset investment or relationship management role, as well as those engaged in the assessment of counterparty risk from an underwriting viewpoint or trade debtor exposure. Regulators or those in a supervisory role with an interest in understanding the underlying credit assessment needed in the organizations or departments they assess. This program is recommended for those without an accountancy or financial analysis background and works well as preparation of the corporate credit analysis or related courses.
Outcome / Qualification etc.
Credits: 16 CPD pts.
Key Learning Outcomes:
- How a company’s business and financing activities are reflected in its financial statements
- The components of financial statements: Balance sheet, profit and loss and cash flow and key notes to the accounts
- The distinction between cash flow and profits
- How to measure operating, investing and financial performance using appropriate ratios and cash flow tools
Training Course Content
Day One
Introduction
Validation of the need for financial analysis and a realization of dependency on external accountant reports.
- Financial analysis as a fundamental tool of credit risk analysis
- Financial reporting and accounting standards
Core Financial Statements
Methodological assessment of the key financial accounts and the way they complement each other.
- Overview of the types and presentation format of financial statements
- Key accounting principles; consolidation and company accounts
- IFRS or US GAAP presentation of company financial statements focusing on the key statements needed for financial analysis:
- Statement of financial position
- Statement of comprehensive income
- Application: Create a set of accounts by reporting step-by-step actions
- Statement of cash flow
- Application: Derive a simple cash flow statement
- Statement of changes in equity
- Notes to the accounts
- Accountants opinion
Financial Profile Analysis
Using information from the financial statements to assess financial performance and financial leverage of a corporate. Introduction of key financial ratios which can be used in the assessment. A relevant company’s financial report will be used through to illustrate individual points.
Profitability and Cash flow Generation and Absorption
- Accounting for revenue and expenses
- Capitalized expenses and provisioning
- Income resulting from group investment
- Non-operating items and reporting of discontinued operations
- EBITDA, funds from operations and cash flow from operations
- Ratios to assess the quality and stability of earnings and cash flow
- Illustration case study: Calculate and interpret key ratios
- Key asset categories on-balance and off-balance sheet
- The meaning of net working capital and cash conversion
- Fixed assets, intangible assets and depreciation, amortization, depletion
- Assets not recognized on balance sheet
- Ratios and cash flow measures to assess the efficient use of existing assets and investment need in assets
- Case study - used throughout: Calculate and interpret ratios, cash flow and peer analysis to assess profitability, cash flow generation and absorption
Day Two
Liquidity and Capital Structure
- Spontaneous finance from suppliers
- Short-term and long-term borrowings
- Off-balance sheet and contingent liabilities
- Equity and reserves; retained earnings, dividend payments, share repurchases
- Cash Flow Available for Debt Service (CFADS)
- Ratios to assess the capital structure and debt service capability
- Application: Calculate a debt service coverage ratio
- Liquidity assessment
- Potential effect of foreign currency exposures
- Case study - used throughout: Calculate and interpret ratios, cash flow and peer analysis to assess the funding structure, debt service capability and liquidity
Why choose Fitch Learning
9 in 10 would recommend us to a colleague
Over 1,300 clients worldwide
CPD recognized
Expenses
- Tuition fee (London): 1595 GBP
- Tuition fee (Newyork): 2295 USD
Continuing Studies
Completion of this course can lead into:
- Corporate Credit Analysis
- Corporate Credit Rating Methodology
- Leveraged Finance and High Yield Credit Risk
- Credit Risk of Commodity Companies
About provider
Fitch Learning
Live Online Training Since 2003, Fitch Learning’s industry experts have been delivering world-renowned virtual training programs to learners across the globe. Benefits include: World-class video conferencing technology Fully interactive, engage and network with peers using break out rooms, quizzes and...
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Contact info
Fitch Learning
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