"Financial Reports are as revealing of the HEALTH OF A BUSINESS as the pulse rate and blood pressure are indicators of the HEALTH OF A PERSON."

A fundamental financial objective of all organizations is to be healthy and stable. The financial reports are the means of the company to summarize and communicate financial performance.

If all the organs and parts of the body contribute to the well-being of the person, it also follows that the different sections/departments of the company contribute to its financial condition.

Module Objectives:

At the end of the module the learner would be able to:

(1) Evaluate the asset mix and the capital structure of the company

(2) Assess the financial condition of the company by using Balance Sheet indicators

a. Liquidity

b. Cash Conversion Cycle

c. Minimum Cash Requirement

d. Leverage

e. Coverage Measures

(3) Prepare a cash flow statement and interpret its information

Program Flow

Pre-session:

Prerequisite: Attended Module 2 or have a solid background in the profitability analysis

List of Ratios and Formulas

Financial Analysis Process

Module 3 (AM session: 09:00 AM to 12:00 NN)

Vertical Analysis of the Balance Sheet

> Asset Distribution

> Capital Structure - Leverage Discussion

Analysis of the Cash Conversion Cycle

Introduction to the Cash Flow Statement

Session Break (12:00 NN to 01:29PM)

Module 3 (PM session: 01:30 PM to 04:30 PM)

• Analysis of the Cash Flow Statement
• Discussion of Leverage & Coverage Measures
• Recap of Financial Ratios
• Summary of the Financial Analysis Process

Post-session: Spreadsheet

Method: Lectures, case discussions, and worksheet exercises

Duration: 6 hours | 09:00 AM to 12:00 NN & 1:30 PM to 4:30 PM (GMT +8)

Intended Audience: Officers and staff involved in Collections.