Financial analysis fundamentals
From the accounting perspective to the financial perspective - M21
A word from the author
A « financial perspective » is vital for any manager wanting to better understand the financial health of a company (be it a competitor or a client) or its operating procedures. Any financial analysis is based on financial statements of accounts which have to be summarized and adjusted. This is what is offered by this module.
List of chapters
- Income Statement Intermediate Performance Subtotals
- Operating cash flow (OCF)
- Adjusting the figures in the French standard accounts template
- From the French standard detailed balance sheet to the financial balance sheet
- Quiz
Learning objectives
- Understand Income Statement intermediate performance subtotals.
- Understand the concept of operating cash flow (OCF).
- Understand the main adjustments applied to financial statements.
- Understand how to change from the French standard detailed balance sheet to the financial balance sheet.
Financial strength and solvency - M22
A word from the author
Financial strength is at the heart of any company director’s concerns as it is the foundation of the company’s sustainability. But what do we really mean by this? In order to answer this question my intention is to make you aware of the various short, medium and long-term deadlines for payment. The balance sheet can be viewed as a puzzle with 3 pieces: stable elements, and the needs related to operations and cash flow. Each piece plays a role in the financial strength and solvency of the company!
List of chapters
- Solvency and liquidity
- Definition of working capital requirement
- Funding working capital requirement
- Analysis of working capital requirement
- Borrowing capacity
- Quiz
Learning objectives
- Understanding the concepts of solvency and liquidity.
- Understanding working capital requirement.
- Understand the components of working capital requirement and how these may change.
- Learn how to calculate the borrowing power of a company in order to better anticipate potential risks and creditors’ decisions.
Measuring performance - M23
A word from the author
Today performance is used to measure the effectiveness of all managers. So which of the following companies has the highest performance levels: the one with the highest profit margins, the one which has gained its market share most quickly, or the one which generates the most cash? In order to be able to answer this question you first need to be able to define the indicators the best adapted to each type of performance, and then to interpret them.
List of chapters
- Measuring activity and productivity
- Profitability
- Leverage
- Quiz Measuring Performance
- Quiz Leverage
Learning objectives
- Understand what underpins performance by means of the physical and financial indicators concerning activity and productivity.
- Understand economic and financial profitability ratios.
- Understand how leverage works: its advantages, risks and limitations.