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Training Course Summary:

This intensive and practical course introduces delegates to the principles of analysing company accounts using ratios and trends. With this knowledge and skill they will be able to make informed judgments about the status of companies. It is the second in the series of three company accounts courses, and knowledge of the content of financial statements is a prerequisite.

By the end of this course you will be able to:

Analyse a set of accounts.
Understand and apply the key ratios.
Identify trends.
Analyse a set of simple company accounts using a case study.

Who Should Attend:

Suitable for anyone with little or no experience of analysing company accounts. Delegates are expected to have attended ‘Introduction to Company Accounts’ or to have attained that level of knowledge.

Training Course Overview/Content:

The Accounting Framework

Improve your awareness of relevant statutes
Recognise the importance of the key accounting standards
Refresher on SSAP 2, the fundamental accounting concepts
Understand the importance of the basis on which accounts are prepared
Financial Statements

Refresher on the content and format of the profit and loss account and balance sheet
Recognise the importance of information contained in the Directors’ Report
The key disclosure requirements
Understand the differences between public and private companies
How these differences affect your reading of financial statements
Analysing the Accounts

Learn where to look for revealing information in the financial statements
The importance of cash in the business
Return on capital employed: understand how to calculate it and the issues in interpreting the values
Calculating profit margin and understanding what it means
Calculating asset turnover
Learn how to calculate working capital ratios: stock turnover; stock to net current assets; average collection period
Understand when the working capital ratios are useful
Assess whether a business can meet its short-term liabilities using the current and quick ratios
Calculating and using gearing figures
Understand how gearing affects earnings
Recognise other ratios
Putting it into Practice

Learn to make comparisons between companies and industries
Assess current business and financial issues
Analyse a set of accounts yourself