Financial Analysis

Description

At the end of the 24-hour Workshop, the participants are expected to, understand the relation between management reports and effective financial management, understand the relation between financial performance analysis and operating control, have an appreciation of the processes involved in generating financial management reports, understand the rationale behind the various techniques used in reading management reports and interpreting them.

Course Content

  1. Leveling of Expectations
    • Individual Activity: Participants’ expectations
    1. Write on a piece of paper the following:
    2. Lecturette:
    3. Grouping of participants, maximum of 3 members each group
  2. The Workshop Coverage in Perspective
    1. Lecturette:
    2. Lecturette:
    3. Contents and format of basic financial statements
    4. The concept of “Responsibility Accounting”
    5. Group case analysis 1
    6. Fun Game 1
  1. Lecturette:
  2. Planning and Budgeting
  3. Planning and budgeting differentiated
  4. Purposes and uses of a budget
  5. Types of budgeting
  6. Planning and budgeting cycle
  7. Revenue and collection cycle
  8. Purchase and disbursement cycle
  9. Other business cycle
  10. Individual Activity – Testing the cycles
  11. Accounting defined
  12. Financial vs. Managerial Accounting
  13. Debit/Credit vs. Increase/Decrease
  14. Business entity concept
  15. Cost concept
  16. Matching principle
  17. Single proprietorship
  18. Partnership
  19. Corporation
  20. Group Activity
  21. From Operating Activities
  22. From Investing Activities
  23. From Financing Activities
  24. Personnel-related
  25. Property-related
  26. Function-related (Marketing expenses vs. Administrative expenses)
  27. Financing-related
  28. Tax-related
  1. Profitability Analysis
  2. One-Statement Profitability/Vertical Ratio Analysis
  3. Return on Net Sales [Ratio of Net Income to Net Sales]
  4. Gross Profit Ratio [Ratio of Direct Costs/Cost of Sales to Net Sales]
  5. Ratio of Operating Expenses to Net Sales
  6. Ratio of major accounts or groups of accounts to Net Sales
  7. Total Operating Assets Turnover
  8. Return on Assets
  9. Return on Equity
  10. Return on Investments
  11. Absolute increase/decrease
  12. Percentage increase/decrease
  13. Contribution margin variance
  14. Sales price variance
  15. Sales volume variance 
  16. Comparative Analysis
  17. Against budget
  18. Against prior period
  19. Against companies with comparable operations
  20. Group Activity 6
  21. Wrap up of Session 3 on profitability measurement and Q&A
  1. Current ratio
  2. Quick asset ratio
  3. Working capital balance
  4. Common size balance sheet
    • Makati
    • +63 2 8891 0722
    • +63 2 8891 0713
    • +63 2 8751 6482
    • Intramuros
    • +63 2 8524-5572
    • Intramuros
    • 658 Muralla St., Intramuros, Manila 1002, Philippines


    • Makati
    • 333 Sen. Gil Puyat Ave., Makati City 1200, Philippines