Profit is insufficient to reflect the financial condition
In analyzing a company’s performance as reflected in its financial report, management usually refers only to company’s profit. A financial report reflects many other aspects of a company’s performance, including potential problems that demand immediate action to address.
Companies with a small profit, but adequate financial condition, relative would be better than
companies with a large profit, but bad financial condition.
Financial report analysis to determine a company’s performance and guidance to a corporate plan
Financial report analysis is a tool that helps a company’s management in making sound decisions. For a management team, a financial report analysis is necessary to determine the most efficient use of available resources. For bankers, a financial report analysis provides a basis for assessing a company before deciding whether to extend a loan. This is true for both short-term credits by looking into a company’s liquidity, and long-term credits by analyzing its cash flow. For shareholders, a financial report analysis is a tool for gauging a company’s profitability and the expected rate of return on their investment.
Similarly, potential investors analyze financial reports to determine a company’s sales trends, business continuity and profitability before deciding to invest.
With short lectures, exercises, group discussion and case studies, this two-day workshop will give participants the knowledge and skills they need to analyze financial reports and use the information to determine the future path of their company.