At the end of this course, the participants should be able to:

• Analyze the financial statements of companies
• Use ratios to analyze financial statement
• Evaluate the company from its published financial statements and financial information.

Financial Analysis Concept

• Objectives and importance of financial statements analysis
• Qualitative qualities of accounting information

Users of Accounting Information

• External users
• Internal users
• Financial statements limitations

Basic Financial Statements

• Statement of financial position
• Income statement
• Cash flow statement

Financial Statements Analysis Techniques

• Vertical analysis
• Horizontal analysis
• Trend analysis

Financial Ratio Analysis

• Liquidity ratios
• Activity ratios
• Leverage ratios
• Profitability ratios
• Investment ratios

Cash Flow Ratios

Method of Calculating Indices and Closing Price

Assessing the Likelihood of Corporate Failure

• Altman’s Z-Score
• Argent’s Failure Model