Complete Seminar Details
Master the science of financial analysis and keep your profit outlook right on the money. Accurate financial analysis is a fundamental element of growth, strategy, and overall success. Understanding how to use financial indicators and benchmarks allows you to allocate resources and evaluate potential projects for maximum return-on-investment. Financial analysis takes the guesswork out of the planning process and enables you to keep tabs on how your business is performing. If your job requires a firm grasp of financial situations, then this hands-on comprehensive workshop is for you. You'll review proven analytical tools and develop a keen understanding of how and when to use them to improve your company's profit picture. Three days. CEUs: 1.8. Keywords: finance, financial. Fee per person: $2445, $2195 for AMA members.
Master the science of financial analysis and keep your profit outlook right on the money.
Accurate financial analysis is a fundamental element of growth, strategy, and overall success. Understanding how to use financial indicators and benchmarks allows you to allocate resources and evaluate potential projects for maximum return-on-investment. Financial analysis takes the guesswork out of the planning process and enables you to keep tabs on how your business is performing.
If your job requires a firm grasp of financial situations, then this hands-on comprehensive workshop is for you. You’ll review proven analytical tools and develop a keen understanding of how and when to use them to improve your company’s profit picture.
Who Should Attend
Managers with financial responsibility or seeking a refresher in analysis—including financial analysts, accountants, project managers, budget analysts, vice presidents of finance, controllers and treasurers.
Note: Please bring your organization’s financial statement and a financial calculator, HP 12C or equivalent.
Recommended CPE credit: 29 hours/Advanced
Recommended for optimum learning benefit: familiarity with fundamentals of finance and accounting (see AMA Seminar #2218 or #1210)
Instructional Method—Group Live
HOW YOU WILL BENEFIT
- Stay current on vital financial indicators and increase your organizational value
- Learn financial forecasting techniques that enable management to make truly informed decisions
- Improve your company's profit picture and your stockholders' investment
- Keep on top of your firm's finances
WHAT YOU WILL COVER
Your Role in Corporate Planning
- Strategic planning
- Capital budgeting
- Financial forecasting
How to Increase Company Value
- Drivers of shareholder value creation
- Economic Value-Added model
How to Evaluate Capital Investment Proposals
- How to use financial forecasting to make accurate evaluations of proposed projects
- Income tax aspects of capital investments
- Alternative investment proposals
How to Measure Management Performance
- Balance sheet analysis—DuPont formula, ROI, ROA, ROE
- Evaluating profit margins, asset turnover (efficiency) and leverage
- Income statement analysis—EPS, ROS
- Past performance and project outcomes
- Benchmarking company performance
How to Use Cash Flow Analysis
- Cash flow from operations, investing and financing
- Ratios and metrics you can use
- Identifying patterns of value
- Interpreting FAS 95— "Statement of Cash Flows"
- Cash flow performance indicators—profitability, liquidity and solvency
How to Interpret and Evaluate Financial Information
- Financial statement analysis
- Managing capital—debt and equity
- What a financial analyst looks for
- Utilizing “Value Line” reports
Capital Asset Pricing Model (CAPM): How to Calculate Present-Value
- The time value of money
- Internal rate of return (IRR)
- Net present value (NPV)
- Calculation of compound growth rate
- Estimation, payback and terminal value
- Discounted cash flow
Learning Objectives
- Use the Contents of the Income Statement, Balance Sheet and Statement of Cash Flows to Evaluate a Company’s Performance
- Appreciate How Companies Manage Their Debt and Equity
- Calculate and Use a Company’s Cost of Capital
- Benchmark a Company’s Performance against the Financial Performance of Other Enterprises
- Understand the Fundamental Drivers of Shareholder Value Creation
- Use the Value Line Investment Service as a Guide for Analyzing Companies and for Investing in Them
- Understand the Theory of Interest and the Time Value of Money and Use Them Intelligently for All Present Value Calculations
- Calculate and Apply the Standard Analysis Tools Used to Measure How Well a Company Is Performing
- Understand What Cash Flow Really Is, and Use It to Determine Whether Value Is Being Created
- Assess the Value of the Best Tools for Creating Better Budgets
- Effectively Evaluate Capital Projects
- Price and Evaluate Mergers and Acquisitions and Understand the Processes by Which They Take Place
- Analyze Leases for Their Effect on the Financial Statements
- Perform Lease versus Buy Analysis
The Nature of Financial Analysis
- Understand the Objective of Performing Financial Analysis
- Name the Principal Questions Asked and Answered by Financial Analysis
- Identify and Access the Sources of Data Used in Financial Analysis
- List the Major Tools Used in Financial Analysis
- List the Major Tasks Performed by Financial Analysts
- Follow a Road Map to the Mastery of Financial Analysis
The Planning Cycle
- Describe How Virtually Every Business, Regardless of Size, Makes Strategic Decisions Using the Planning Cycle (Exhibit 2-1)
- Define the Basic Individual Steps in the Planning Cycle, Which Includes the Strategic Plan, the Resource or Capital Plan, the Operating Plan, the Measurement of Results, and the Analysis of Results
- Distinguish between the Strategic Plan and the Operating Plan
- Demonstrate How and Why Financial Analysis Is Required in Every Step of the Cycle
- Modify a Given Strategy and Desired Results Based upon Analysis
The Income Statement and the Balance Sheet
- Define the Format of a Typical Income Statement
- Calculate the Principal Income Statement Subtotals That Analysts Use to Track Trends and Benchmark Profit Performance
- Define What Economic Events Are Measured on the Income Statement
- Understand the Nature of Income Statement Estimates
- Define the Format of a Typical Balance Sheet
- Understand the Major Sections of the Balance Sheet and How Analysts Use Them
- Define and Understand Each of the Line Items on a Typical Balance Sheet
- Explain Why Companies Own Assets
- Explain How Companies Pay for the Assets They Own
- Understand and Use Common Size Financial Statements
Analyzing Capital
- Calculate a Company’s Total Capital
- Define a Company’s Invested Capital and How It Is Used in Measuring Performance
- Understand and Explain the Concept of Leverage
- Be Aware of Typical Leverage Ratios for Different Types of Companies
- Understand Bond Ratings and How They Influence Capital Management
Creating Shareholder Value
- Define What Is Meant by "Creating Value" in an Organization
- Calculate the Pre- and After-Tax Cost of Debt
- Calculate the Cost of Equity Using the Capital Asset Pricing Model (CAPM) Formula
- Explain the Meaning of Beta and Its Relationship to CAPM
- Calculate a Company’s Weighted Average Cost of Capital (WACC)
- Calculate a Company’s Economic Value Added (EVA®)
- Explain Why Capital Projects in Mergers and Acquisitions Appear to Be Logical or Illogical from a Financial Point of View of the Capital Asset Pricing Model
- Prepare a List of at Least Fifteen Ways to Increase Shareholder Value
Value Line®
- Read, Intelligently, the Information about a Company Presented on the Value Line® Page
- Define Each of the Numerical Parameters Presented
- Interpret the Information Presented in the Graph
- Understand How the Financial Analyst Used the Numbers to Reach Conclusions about a Company
- Begin to See the Patterns in a Company’s Financial Statement Numbers That Influence Analysts’ and Shareholders’ Opinions
- Calculate a Company’s Weighted Average Cost of Capital from Value Line® Information
Accrual Performance Indicators: Taken from the Income Statement and Balance Sheet
- Define How Growth Rates Are Used to Indicate Performance
- Explain Why Ratios Should and Can Relate to the Creation of Shareholder Value
- Identify and Calculate the Profitability Ratios
- Identify and Calculate the Liquidity Ratios
- Identify and Calculate the Solvency Ratios
- Describe How the Metrics Can Be Improved
- Understand the Altman Z-Score and for What It Can Be Used
- Understand What the Various Ratios Mean and How They Are Used
The Time Value of Money
- Understand How Interest Is Calculated
- Use a Calculator That Contains Time Value of Money Functions
- Calculate the Future Value of a Single Sum
- Calculate the Present Value of a Single Sum
- Calculate Compound Growth Rates
- Understand the Difference between an Ordinary Annuity and an Annuity Due
- Calculate the Present and Future Value of an Annuity
- Calculate the Payment of an Annuity
- Calculate Annuities with Uneven Payment Patterns
- Calculate and Understand Net Present Value
- Calculate and Understand Internal Rate of Return
- Calculate the Present Value of a Perpetuity
- Calculate the Present Value of a Perpetuity That Is Growing at a Fixed
- Percentage per Period
- Explain the Relative Strengths and Weaknesses of the Different PV Techniques Such as NPV and IRR
Cash Flow
- Understand What Cash and Cash Equivalents Mean
- Explain Why the Cash Flow Statement Is a Valuable Tool for Corporate Managers
- Explain Why the Cash Flow Statement Is Attracting Increased Attention
- Engage in a Discussion of How Cash Flow Is Used to Value Companies
- Define a Company’s Gross Cash Flow
- Define Cash Flow from Operating Activities
- Define Cash Flow from Investing Activities
- Define Cash Flow from Financing Activities
- Analyze Patterns of Value Creation in Each of the Above
- Understand and Use the Statement of Cash Flows
- Define a Company’s Free Cash Flow
- Understand and Use Cash Metrics
Days: 3
CEUs: 1.8
3 days/1.8 CEUs
This Seminar Features Blended Learning
AMA Blended Learning combines instructor-led training with online pre- and post-seminar assessments, tune-up courses and other resources to maximize your training goals. Through a blend of proven instructor-led seminars and powerful online technology, AMA Blended Learning provides a compelling and more comprehensive experience for the learner—producing a greater return-on-investment for the employer and the seminar participant.
Sponsor Background:
The American Management Association was founded in 1923. They have built a content control check into every one of their professional seminars. Plus a series of checks and balances to ensure that the content of every AMA seminar is precisely targeted to:
- provide comprehensive, hands-on training that is of practical use when you return to the job
- focus on need-to-know specifics, relevant to the demands of global business today
- offer the expertise and personalized attention of top-ranking instructors
- facilitate your career development and business savvy
Whether you're looking for a solid foundation of business fundamentals or strategies to help you seize growth opportunities for your company, AMA offers expert instruction to help you:
- manage your priorities effectively
- cultivate more productive working relationships
- increase your on-the-job value
- align your skills with marketplace demands
- bring out the best in people, processes and yourself
Cancellation and Refund Policy
If you cannot attend a seminar you may contact AMA in advance to transfer to a future session, or can send someone to take your place. If you need to cancel your attendance, AMA will give you a complete refund if you cancel more than three weeks before your seminar begins. To cancel, simply call. If you cancel with less than three weeks' notice, you will be liable for the entire seminar fee, however you may request a courtesy transfer to use at any future AMA seminar of equal or lesser value. The courtesy transfer must be used within one year of the date of your originally scheduled seminar. In fairness to all attendees, if you do not attend a seminar session for which you are confirmed, and do not cancel with a minimum of three weeks’ notice as described above, you will be charged the entire seminar fee.
