Financial Analysis
Conducting a Comprehensive Diagnostic and Forming an Informed Judgment on a Company's Financial Health
Duration : 5 days
Contrary to a common misconception widely propagated by the mainstream media, company valuation is not about applying "methods" and mixing them to arrive at a random "range." In reality, it is a rigorous professional practice that relies on a series of precise operations, emulating those implemented by real market players. This training aims to propose the various phases of this methodology so that participants can replicate it or simply ensure that the "experts" they consult have correctly applied it. It applies to all companies except for micro-enterprises and start-ups, which have specific issues.
Learning Objectives
Organize the steps of the financial diagnostic process
Assess the management of utilized capital and the results it generates
Measure performance in terms of profitability and cash flows
Training Program
Commitment
Engage in your training by logging into your participant space and completing your preparatory questionnaire. Your trainer will receive your progress objectives. Self-assess your skills to track your progress after your training.
Organize the Steps of the Financial Diagnostic Process
Adapt to the analysis environment
Identify the useful information and how to obtain it
Apply interpretation aid techniques
Select the vocabulary and key indicators
Discard non-relevant tools
Practical Exercise: Design a summary sheet in Excel using a provided template
Choose a Practical Methodology
Determine the order of analytical tasks
Summarize without losing essential information
Present the company as a circuit in four key areas
Identify judgment criteria, especially the cost of capital
Practical Exercise: Jointly build an example of a business creation, highlighting financial issues
Assess the Management of Utilized Capital and the Results Generated
Analyze the origin and use of capital
Adjust and regroup balance sheet items considering the company's accounting specifics to achieve a four-figure balance sheet
Read the balance sheet in terms of financing needs and resources
Measure invested capital and assess its effective use
Evaluate financial resources and their structure
Balance resources and financing needs, measure solvency, and bankruptcy risk
Understand why automated bankruptcy prediction (scoring) often fails
Practical Exercise: Judge the relevance of capital usage using key indicators and ratios for two companies in different sectors
Assess the Structure and Level of Results
Study the formation and structure of results
Identify action levers
Use economic and financial revenue indicators
Calculate and interpret margins
Practical Exercise: Calculate structure and margin indicators for two companies in different sectors
Measure Performance in Terms of Profitability and Cash Flows
Measure profitability and value creation
Adjust and regroup income statement items in harmony with the balance sheet to achieve a four-figure income statement
Calculate and interpret profitability ratios
Understand the relationship between margin and productivity, and the operational leverage
Diagnose the impact of financial leverage
Practical Exercise: Calculate profitability ratios and interpret them concerning performance and debt for two companies in different sectors
Analyze Cash Flows and Financial Statements
Understand the importance of analyzing cash flows (company liquidity)
Measure cash generation (self-financing) and its significance
Use financial statements and cash flow tables
Calculate and interpret cash flow ratios
Practical Exercise: Analyze the cash flows and conclude on the financial situation of the two companies
Transfer
Continue your training journey in your participant space:
Access resources, self-assess the skills acquired during your training, and facilitate the implementation of your commitments in your professional context.
Practice with the e-learning module: Financial Analysis - Key Points
Key Points
Hands-on experience with the financial analysis methodology through comprehensive case studies developed progressively
Training led by Christian Pierrat, a corporate finance professional and author of "Corporate Financial Management"
Participants use and retain a summary financial analysis sheet in Excel during the training
Who Should Attend This Training
Accounting managers
Administrative and financial managers
Credit managers
Controllers
Certified accountants
Business unit managers or directors with a solid background in accounting and possibly financial analysis
Executives facing financial challenges
Prerequisities
Good knowledge of accounting and corporate finance
Teaching Methods
A training program structured around skill transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous sessions
A multi-step learning path to promote engagement, learning, and transfer
Training that encourages participant engagement for better retention of teachings
Satisfaction and Evaluation
Skill evaluation conducted throughout the training by the participant (self-assessment) and/or the trainer according to the training modalities.
Online evaluation of the training action in your participant space:
Immediate feedback at the end of the training to measure satisfaction and perception of skill progression relative to the training objectives. With your agreement, your overall rating and comments will be published on our website through Verified Reviews..
Follow-up 60 days after the training to validate the transfer of acquired skills in the workplace.
Attendance tracking and issuance of an individual training certificate or certificate of completion.
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