Financial Statement Analysis

Course Start Date: 9th July

Training Duration: 5 Days

Practical application through exercises:

  • Excel Exercises

Learning Outcomes


Understand how everyday business transactions impacts a firm’s financial performance


Analyze the three key financial statements and key notes to the accounts


Calculate ratios relevant for the assessment of an entity's profitability, financial performance, financial position and financial adaptability.

Select the appropriate action that could be taken to improve an entity's financial performance and financial position

Course Outlines

  • Importance and relevance of financial statement analysis for equity investments
  • Understanding the accounting equation (A = L + E) and how every transaction in a business affects this accounting equation and the three financial statements

Exercise: Using excel exercises, delegates will understand the impact of various transactions on a company’s financial health

  • Sales or Revenue – issues in revenue recognition 
  • Capitalizing Vs Expensing and their impact
  • Normalizing Income statement – Adjusting for non-recurring and non-operating items
  • Analyzing Off-balance sheet and contingent liabilities
  • Regrouping Balance Sheet for comparative analysis
  • Analyzing key sources and uses of cash

Exercise: Delegates will normalize/re-group and comparatively analyze income statement, balance sheet and  for two publicly traded companies

  • Financial Statement Analysis – Common Size Analysis
  • Financial Statement Analysis – Ratio Analysis – Liquidity, Profitability, Solvency and Activity Ratios
  • Industry specific ratios to understand financial health of companies
  • Understanding limitations of ratio analysis
  • Select the appropriate action that could be taken to improve an entity’s financial performance and financial position

Exercise: Delegates will perform financial statement analyze for two publicly traded companies