Course code: ACA1 - call 0845 071 2801
Course duration: 1 day.
The second of our series of company accounts courses that enables you to analyse and work with corporate accounts and make informed judgements about the status of companies.
This intensive and practical course introduces delegates to the principles of analysing company accounts using ratios and trends. It is the second in the series of three company accounts courses, and knowledge of the content of financial statements is a pre-requisite.
Is it right for me?
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.
What will I learn?
By the end of this course you will be able to:
- Understand the form and structure of companies and groups.
- Understand and apply key ratios.
- See the bigger picture; know what results you expect to see from any company or any industry.
- Identify trends and comparisons over time and against industry norms.
- Utilise a bank of important questions.
- Analyse real company accounts.
What will it cover?
Preparing for Analysis
- Refresher on the content and format of the profit and loss account and balance sheet
- Issues arising from the industry and sector that the company operates in
- Considering company size
- Anything to be learnt from the Memorandum and Articles of Association?
- Understand the differences between public and private companies
- An introduction to group accounting
Analysing the Accounts
Analysing various ratios that tell us about:
- Capital structure
- Efficiency of working capital
- The cash position
- Return on investment
- The importance of cash in a business
- Capital employed: understand the issues surrounding it
- What do the profit margins tell us?
- Calculating asset turnover
- Understanding when the working capital ratios are useful
- Assess whether a business can meet its short-term liabilities
- Understanding gearing and how it affects earnings
What to Look for in the Annual Report
- The Chairman's statement
- The Director's report
- The Auditor's report
- The notes to the accounts
Putting it into Practice
- Learn to make comparisons between companies and industries
- Assess current business and financial issues
- Analyse a set of accounts yourself
Further courses to consider
Interpretation of Company Accounts
Key Accounting Concepts for Non Financial Managers
This course is jam-packed full of everything you need to know when setting out to analyse the accounts of customers, competitors, suppliers, subsidiaries, acquisition targets or companies you may wish to invest in!
Well look at business performance from the view of an internal manager, a potential customer or supplier, and the investor, so you can get a full rounded view of how the company is doing and therell also be top tips on looking out for the warning signs of corporate ill-health!
Well look at real companies and by the end of the day youll be able to go back to work and review accounts with much more confidence quickly identifying the questions you need to ask to feel confident doing business with other companies.
Julie Powell, Sales Support Executive
ABN AMRO Commercial Finance PLC
"The course was very informative and given me a completely different outlook on how to approach the analysis of a set of accounts."