Financial Analysis Techniques

Your management team is depending on you for more than just numbers

Sound financial decisions depend on sound financial statements. It’s not enough anymore that you know how to calculate average weighted cost of capital, determine cash flow, or understand ratio analysis.  To be successful, you now need to know how to relay your company’s financial modeling and financial data to management, gain insight into business financial statements of competitors, understand the financial model of your supplier, and more.

This course will teach more than how to calculate equity cost of capital, the rules of GAAP financial statements, or the best way to determine indirect cash flow. This intensive, highly focused course will also teach techniques to help you communicate more effectively with investors, lenders, and others you deal with in business on a daily basis.

This two-day course uses case studies and analyzes actual financial statements to deliver the valuable insights you need to:

  • Create effective financial forecasts and models
  • Develop approaches to estimating your cost of capital, net cash flow, and equity value
  • Evaluate the quality of reported earnings
  • Identify adjustments to financial statements which may improve transparency
  • Assess cash flow needs through cash flow calculation and cash flow analysis
  • Link operational changes to shareholder value
  • Incorporate financial measures to determine management’s performance and efficiency
  • Review the effective use of ratio analysis

Who should attend?

This course is designed for those who use financial data in the management or evaluation of firms, such as:

  • CFOs
  • VPs of Finance or Accounting
  • Treasurers
  • Controllers
  • Auditors
  • C.P.A.s
  • Budget/Financial Analysts
  • Directors/Managers of Finance or Accounting
  • Bankers
  • Investors

“Financial Analysis Techniques” is targeted toward external reporting and analysis, following generally accepted accounting principles as the foundation for the data used. You’ll discover how to:

  • Adopt the information and models used in our case studies to effectively communicate the financial side of your business to your non-financial colleagues
  • Review, refresh and update your analytical skills to gain better insight into an organization’s operations
  • Apply valuation drivers to enhance the value of your organization
  • Employ sustainable growth techniques to assess your growth assumptions
  • Illustrate and communicate the impact of operations on cash flow to your operational colleagues

“Financial Analysis Techniques” teaches you to use financial information effectively so you can develop better insights and analysis of your organization. You’ll learn about:

  • External analysis—competitors, customers and suppliers
  • Internal analysis—liquidity, cash flow and performance
  • Evaluating alternative analysis strategies
  • Integrating key metrics

A case study approach

Case studies are a core element of our course and will be used throughout.

Ratio analysis

Review key ratios used to judge operating performance, impact of industry and competitive factors on key ratios, impact of how strategic decisions impact ratios and Du Pont analysis. Effectively use these time-tested tools to summarize, compare and gain insights from financial information.

Comparative data

Identify sources for comparative data for benchmarking.

Forecast and model

Create effective forecasts for financial statements, and model the financial implications of policy changes.

Cost of capital

Develop estimates of the firm’s cost of capital.

Adjustments to the statements

Adjust financial statements to develop better measures of operating earnings and operating assets.

Quality of earnings

Assess the quality of earnings, detect earnings management and make necessary adjustments to the financial statements to improve your analysis.

Equity value

Learn methods used for calculating the equity value of the firm.

Market multiples

Use market multiples as alternatives to estimating equity value.

Value added

Model the impact of operational changes to shareholder value and economic value added (EVA).

Cash flow

Examine the interaction of growth and cash flow needs, use various techniques of cash flow analysis and assess your management of working capital.

Credit analysis

Use financial information to gain insights into credit analysis and how loan decisions are made.

Charles Krueger

Charles A. Krueger, C.P.A., C.I.A., is associate professor emeritus and director emeritus of the finance program for the Wisconsin School of Business Executive Education at the University of Wisconsin-Madison. Krueger takes an operational approach to developing and applying financial information in decision making, directing profit centers, and implementing innovative cost management.

R.D. Nair

R.D. Nair, Ph.D., C.P.A., is the PriceWaterhouse Professor of Accounting and Information Systems at the Wisconsin School of Business. He has extensive teaching and research experience and has taught financial accounting principles, financial statement analysis, accounting standard setting and accounting theory at UW-Madison since 1978. In 1989, the Wisconsin Institute of C.P.A.s honored him. with its Outstanding Educator Award. He was also awarded the Lawrence J. Larson Excellence in Teaching Award in 1992. He has worked for Arthur Andersen and Co. in Milwaukee and Chicago, as well as on the Financial Accounting Standards Board (FASB).

Enroll: Financial Analysis Techniques

Individual Sessions