How to Interpret Financial Statements

Who Should Attend / Learning Outcome

Many middle and senior managers lack the ability to interpret financial statements placing them at a potential disadvantage when interpreting financial information for decision -making purposes.

In essence company accounts are not overly complicated although it is a truism that layout and terminology can make them appear to be. This course cuts through the jargon to make accounts easy to understand.

When broken down into the essential corporate survival elements – liquidity, profitability, efficiency and investment appraisal – clear patterns emerge and a holistic level of managerial understanding can be achieved, increasing confidence when dealing with business colleagues and aiding improved business decision-making skills.

Course Content

• The key financial statements and what they can tell you
  
• How financial statements are arrived at – basic book-keeping cycles
  
• Prepare and interpret the Profit and Loss Account
  
• Prepare and interpret the Cash Flow Statement
  
• Prepare and interpret the Balance Sheet Forecast
  
• How to prepare and interpret financial ratios
  
• How to use ratios to raise supplier and customers performance
  
• How to use ratios to improve cash-flow
  
• Using financial statements and ratios to effectively analyse competitive liquidity, profitability, gearing and efficiency