Analysing Company Accounts

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:

Analyse a set of accounts.
Understand and apply over twenty key ratios.
Utilise a bank of important questions.
Identify trends and comparisons over time and against industry norms.
Analyse a set of simple company accounts using a case study.
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
profitability
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
Interpreting Company Accounts