"In a perfect world, investors, board members, and executives would have full confidence in companies' financial statements… Unfortunately, that's not what happens in the real world, for several reasons." – Where Financial Reporting Still Falls Short, Harvard Business Review Article
The Financial Statements Analysis Framework has six processes that the analyst will assess the financial statements, drawing insights to form recommendations and conclusions. Of course, financial reports must be as accurate as possible. By adopting the right analytical tools, you can perform adequate and accurate financial statements analysis.
At the same time, financial reporting is as important as analysis. It gives existing and future stakeholders an accurate depiction of its finances and performances and provides insights and forecasts into its future.
Accurate financial analysis and reporting would offer in-depth and high-level insights for companies to make their business decisions confidently and effectively. With the right approach, companies will be able to accelerate their growth or expand their business strategy.
In this course,
01. Collecting your Data
Before analysing data, the first step is to understand why you're collecting the data and how to go about collecting it. You will learn the different steps that make up the data collection process.
02. Understanding your Data
To start analysing your data after collecting it, you will learn the different types of analytical tools recommended for your analysis. Subsequently, you would learn to apply these analytical tools to your data through a case study that demonstrates it.
03. Using your Data
After collecting and analysing your data, you will learn to make sense of your data and form conclusions based on your insights. You will also learn how to evaluate your recommendations and plan for the next steps to execute your recommendations.
By the end of this course, you'll have the skills and confidence to analyse your financial statements and generate strong insights for your business plans.
What is going to be covered
· (Slide) Courseware — How to Make Business Decisions Using Financial Statements
· (Excel) Worksheet — Workshop Activity 1
· (Excel) Worksheet — Workshop Activity 1 (Financial Ratios)
· (Excel) Worksheet — Workshop Activity 2
· (Excel) Worksheet — Workshop Activity 3
· (Excel) Worksheet — Workshop Activity 4
· (Excel) Worksheet — Workshop Activity 5
· (Excel) Worksheet — Workshop Activity 6
· Business owners who wish to gain a better understanding of analysing the financial statements and using them for business decisions
· Analysts who wish to generate high-level insights from the financial statements to support their research report
By the end of the course, you'll be able to:
(1) Collect reliable and adequate data for your analysis
(2) Adopt the right tools to analyse your data
(3) Avoid the mistakes made when processing data
(4) Generate insights and recommendations from your data
(5) Develop an action plan to follow up on your recommendations
Meet your Instructor
Managing Partner of BlackStorm Consulting
Shelby Tee is the Managing Partner of BlackStorm Consulting. Shelby is always keen on exploring, learning new things, and nothing excites her more than a new challenge. Her expertise lies in corporate and product marketing, project management, business operations and crisis management.
Being in the cut-throat world of retail marketing and project management for nine years has allowed Shelby to quickly identify clients’ needs and deliver the best for them. In addition, her experience in a wide variety of industries has led her to adapt to any situation and environment.
It covers an overview of the six steps of the financial statements analysis framework.
There are a total of 22 videos covering eight lectures in this course:
· Lecture 1: An Overview
· Lecture 2: Step 1 – Purpose and Context
· Lecture 3: Step 2 – Collect Data
· Lecture 4: Step 3 – Process Data
· Lecture 5: Step 4 – Analyse Data
· Lecture 6: Step 5 – Develop Recommendations
· Lecture 7: Step 6 – Follow Up
· Lecture 8: Case Study
You will be able to access the following materials in this course:
· Course Slide Deck (PDF)
· Info Sheet (PDF)
· Workshop Activities (Excel)
Understand the overview of the framework before we delve in-depth into each step.
Understand the importance of identifying the purpose of the analysis and how to identify the purpose.
Understand the importance of identifying the context of the analysis and how to identify the context.
Understand the five types of financial ratios and their uses.
Understand the importance of collecting data and the steps involved to help you collect data.
Understand the importance of processing data and the analytical tools that can help you do so.
Understand the differences between the two types of analysis, as well as their advantages and disadvantages.
Identify the types of errors that may occur when processing data.
Understand how to track the performance of your competitors from the point of view of a startup versus a corporation.
Understand the importance of analysing data and the different approaches you can use.
Understand the importance of developing recommendations and the steps involved to help you do so.
Understand how to use the SWOT analysis to analyse your company's situation.
Understand how to use the risks and rewards analysis to evaluate your recommendations.
Understand the importance of following up and developing an action plan to do so.
Understand the background of an FMCG company that will be used as our case study to demonstrate the six steps of the financial statement analysis framework.
Demonstrate how to apply step 1 of the financial statement analysis framework to our case study.
Demonstrate how to apply step 2 of the financial statement analysis framework to our case study.
Demonstrate how to apply step 3 of the financial statement analysis framework to our case study.
Demonstrate how to apply step 4 of the financial statement analysis framework to our case study.
Demonstrate how to apply step 5 of the financial statement analysis framework to our case study.
Demonstrate how to apply step 6 of the financial statement analysis framework to our case study.