Date post: | 06-Aug-2015 |
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Economy & Finance |
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FINANCIAL ANALYSIS JOIN OUR TRAINING AND FIND OUT HOW MUCH YOU COULD ADD YOUR
UNDERSTANDING ON HOW TO ANALYZE THE FINANCIALS OF A BUSINESS EVEN IF YOU DO
NOT HAVE FINANCE BACKGROUND
WE WILL NOT BRING YOU TOO MUCH ON UNDERSTANDING STANDARD FINANCIAL
STATEMENTS ANALYSIS RATIOS….PROBABLY TOO BORING FOR YOU….
Financial Analysis is NOT Financial Statements Analysis
FINANCIAL ANALYSIS IS NOT FINANCIAL STATEMENTS ANALYSIS AND CERTAINLY THIS IS
NOT YOUR FATHER’S ACCOUNTING TEXTBOOKS!
First, we are not accountants, BUT, we will see the Financial Statements from a Corporate Finance perspective.
We do not want to be as precise and exhaustive as an accountant!
We want to focus on big items that are economically meaningful, BUT as the saying
goes, THE DEVILS ARE IN THE DETAILS. Then, the BIG PICTURES MATTER MORE BEFORE we
are going into the details.
Profitability per se cannot fully measure value because it does not factor in risk.
Accounting items can be manipulated and they may not consider the time value of money and the opportunity cost of capital.
What Berkshire Hathaway Sees?
ONE LEG OF VALUE FOUNDATIONS
ANYTHING THAT DOESN'T INCREASE
CASH FLOW DOESN'T CREATE VALUE
(UNLESS IT REDUCES RISK OR GIVES THE COMPANY VALUABLE OPTIONS
but ARE YOU SURE YOU COULD COMPUTE THIS MORE RELIABLY THAN CASH?
MAXIMIZING SHAREHOLDER VALUE: A FAD?
DRAW YOUR OWN OPINION AFTER ATTENDING THIS CLASS!!!
Training Objectives
We will bring you to see what matters from THE TERMS IN the financial
statements for financial analysis purposes
In practice, financial analysis has narrowed down to follow a prescribed
routine, filling in boxes with standard financial ratios, calculated
according to precise and inflexible definitions. However, there is a more
professionally challenging and rewarding alternative, than operating in a
purely mechanical manner
Training Objectives
We focus on large contributions to the corporate income (in other
words, forget the small accounting items). Save your time, no concern
for exhaustivity (you could smile…)
Focus on what matters in finance (and the repayments of your lending
as well):
• Cash flows..cash flows…cash flows.. (do they create value?)
• Debt and leverage (for risk analysis)
• Profitability (for returns to shareholders)
Training Objectives
We share this training for managers (and future managers) who want their companies to create
value.
We believe that clear thinking about value creation and skills in using it to guide business decisions,
are prerequisites for success. Business managers and financial managers do not always understand
value well enough. But they must understand it if they are to do their jobs well and fulfill their
responsibilities.
Specifically, managers must not only have a theoretical understanding of value creation, but must
be able to create tangible links between their strategies and value creation.
We explain why value creation should be part of a company's culture and how it manages itself on
a day-to-day basis. And we provide detailed explanations for measuring value.
Points of Reminder
In finance, risk and return are two sides of the same coin. Higher
returns can only be achieved at the price of higher risk. And if the
risks are higher, the likelihood of them materialising is higher too. This
is a fact of life you should never forget or you may live to regret it
sorely.
The purpose of the financial reporting may be to get “cheap” capital….Don’t you agree?
Are you sure you want to put more focus on standard financial
statement analysis ratios?
What is Financial Analysis for?
For shareholders, financial analysis assesses whether the company is able to
create value. It usually involves an analysis of the value of the share and
ends with the formulation of a buy or a sell recommendation on the share.
For lenders, financial analysis assesses the solvency and liquidity of a
company, i.e. its ability to honour its commitments and repay its debts on
time. BOTTOM LINE : VALUE ….VALUE
a value-creating company will be solvent and a
value-destroying company will, sooner or later, face
solvency problems
Question: Are you familiar with this?
Generic Business Model is a “Cash Pump” cycle
Answer: Is this Enough for Financial Analysis?
Training Syllabus
The Finance Function(Everybody is Finance People)
What Determines Company’s Growth? The Obsession for Growth? Is This Value-Creating Growth?
Financial Statements and Cash Flow
Earnings
Capital Employed and Invested Capital
Walking Through from Earnings to Cash Flows
How to Perform a Financial Analysis
Margin Analysis : Structure
Margin Analysis : Risks
Working Capital and Capital
Expenditures
Financing
Return on Capital Employed and Return
on Equity
Conclusion of Financial Analysis
Value and Corporate Finance
Measuring Value Creation : Financial
Indicators and their Shortcomings
Value-Based Management : Look for the
Drivers!
Training Desktop
Date : please check it in at “futurum corfinan” (2-day training)
Venue : Hotel at Jakarta Pusat
Notes :
• Basic accounting skills are required to attend the training class. If not, it means the participants
will follow the top-down approach, knowing the big pictures before diving into the accounting
class in other trainings.
• Presentation slides will be distributed in softcopy
• Minimum participants = 10 persons
• After the training, participants can still discuss about the training materials via email
Contact email : [email protected]
Visit Website and Training Testimonials : google “futurum corfinan”
Train Your Employees!
By now, we’ve probably all heard the
classic HR executives’ exchange —
Colleague #1: “What if we pay to train our
people and they leave?”
Colleague #2: “Right, but what if we
DON’T train them and they NEVER
leave?!?”
We can all agree that the latter scenario
is worse.