Course Objectives
Financial Analysis and Forecasting: Tools and Techniques
Course Methodology
The course is a hands-on workshop that applies the forecasting techniques utilizing MS Excel through the use of different exercises and case studies.
Course Objectives
By the end of the course, participants will be able to:
Use ratio and financial analysis to Interpret company financials and industry position
Analyze real-life financial statements from companies traded on the world and 'GCC' stock exchanges
Apply different forecasting techniques that will help in making financial and business decisions
Utilize Microsoft Excel to build forecasting models effectively
Target Audience
Financial controllers, analysts, finance and accounting managers, supervisors, and finance professionals who need to interpret and analyze financial statements and use them to create and maintain forecasts in their organizations.
Target Competencies
Understanding and performing financial analysis
Perform vertical, horizontal and trend analysis
Forecasting
Modeling financial statements
Applying Excel functions and tools
Note
This is a hands-on training course using laptops. Participants are required to use their own laptops equipped with Excel 2016 or higher for the duration of the training.
Course Outline
Required components of financial statement analysis
Role of financial reporting and analysis
Core financial statements and the importance of the annual report
The important role of notes and supplementary information
Objectives of financial statements audit
Types of audits
Financial statement analysis framework
The accounting cycle
Financial reporting mechanics
Relationship, elements and classification of financial statements
Mechanisms of financial analysis techniques
Vertical analysis and strategy: balance sheet and income statement approaches
Horizontal, trend analysis and growth
Liquidity analysis:
Current, quick, and cash ratios, defensive interval and cash conversion cycle
Asset management and activity ratios:
Total and fixed assets turnover
Solvency analysis:
Debt, equity, and times interest earned ratios
Profitability analysis:
Profit margin, gross margin, return on assets, return on equity
Market and valuation:
Price earnings and earnings-per-share ratios
DuPont analysis: the three-step and five-step models
Limitation of ratio analysis
Forecasting techniques
Qualitative models
Market research approach
Delphi method technique
Quantitative models
Causal models
Econometric models
Regression analysis: simple and multiple
Correlation coefficient and coefficient of determination
Time series methods
Simple average
Moving average
Exponential smoothing
Expected value
Modeling projected financial statements
Micro and macro factors
Forecasting sales
Estimating market demand
Estimating company demand
Developing sales forecast
Forecasting cost of sales
Forecasting operating expenses
Forecasting key assets and liabilities accounts
Modeling the income statement forecast
Modeling the balance sheet forecast
Required components of financial statement analysis
Role of financial reporting and analysis
Core financial statements and the importance of the annual report
The important role of notes and supplementary information
Objectives of financial statements audit
Types of audits
Financial statement analysis framework
The accounting cycle
Financial reporting mechanics
Relationship, elements and classification of financial statements
Mechanisms of financial analysis techniques
Vertical analysis and strategy: balance sheet and income statement approaches
Horizontal, trend analysis and growth
Liquidity analysis:
Current, quick, and cash ratios, defensive interval and cash conversion cycle
Asset management and activity ratios:
Total and fixed assets turnover
Solvency analysis:
Debt, equity, and times interest earned ratios
Profitability analysis:
Profit margin, gross margin, return on assets, return on equity
Market and valuation:
Price earnings and earnings-per-share ratios
DuPont analysis: the three-step and five-step models
Limitation of ratio analysis
Forecasting techniques
Qualitative models
Market research approach
Delphi method technique
Quantitative models
Causal models
Econometric models
Regression analysis: simple and multiple
Correlation coefficient and coefficient of determination
Time series methods
Simple average
Moving average
Exponential smoothing
Expected value
Modeling projected financial statements
Micro and macro factors
Forecasting sales
Estimating market demand
Estimating company demand
Developing sales forecast
Forecasting cost of sales
Forecasting operating expenses
Forecasting key assets and liabilities accounts
Modeling the income statement forecast
Modeling the balance sheet forecast