Advanced Financial Statements Analysis
- Thursday April 21st, 2016
- Posted by: nidal4321
- Category: Management
From 29/5 To 07/6 /2016/
The analytical framework for the Advanced Financial Statement Analysis program involves analyzing and linking six elements:
- Competitive dynamics within an industry
- Firm strategy
- Accounting and financial reporting quality
- Financial analysis
- Forecasting future earnings and cash flows
- Decision-making (such as firm valuation and other types of financial decisions)
The program demonstrates and applies this analytical framework and a wide array of practical tools in order to emphasize the use of financial accounting information in equity valuation and other financial decision-making contexts. We will also examine the issues that corporate managers face as they design and implement financial reporting strategies, increasing your abilities to detect and undo the effects of earnings management. The framework and tools developed in this program are intended to enhance your analytical skills if you are interested in using financial statements in decision-making, particularly equity valuation.
The program consists of the following three integrated parts:
I. Financial Statement Information: Enhance your understanding of the accounting information contained in company annual reports (balance sheets, income statements, statements of cash flows, and related footnotes and disclosures). This section provides the foundation of financial statement analysis and valuation. We will examine the many value relevant pieces of information that financial statements contain, as well as the accounting choices managers make in light of their business strategy, contractual constraints and incentives, and GAAP.
II. Analysis: Deepen your ability to analyze how financial statement information captures and reflects the critical factors of risk and success in the competitive environment and strategy of firms. Here we will introduce you to a variety of advanced practical tools that allow you to obtain much more information out of a set of financial statements, enabling you to better assess a firm’s profitability and risk. In this section of the program we will also analyse an advanced set of cases in which we will evaluate accounting and earnings quality, assess the likelihood of earnings management, and undo the effects of earnings management.
III. Accounting-based Valuation: Learn and apply a variety of state-of-the-art accounting-based valuation techniques, including discounted free cash flows, residual income, and valuation multiples such as price-earnings ratios and market-to-book ratios. You will also be introduced to techniques to reverse engineer stock prices and together we will apply these valuation models to a variety of advanced settings. In addition, you will be exposed to the interplay between firms and analysts, and the striking impact of earnings numbers on share prices in the capital markets.