Financial Analysis Using Excel - Essential Financial Skills for Dynamic Leadership Training Class

Program Agenda:
Day One
The International Business Environment
-Overview of the strategic, tactical, and operational aspects of today's business entity
-The Organizational Planning Model
-The Product/Decision/Information Cycle
-The Objectives of Financial Analysis

The Financial Reporting Process and the Organizational Planning Cycle
-Review of financial statements using both American and International GAAP
-"Asset-Light" vs. "Asset Heavy" companies and the relative impact on Return
-The picture presented by the financial statements relative to past operations
-The inter-relationship among financial statements, strategic decisions, and operations
-GAAP vs. Cash - How to spot accounting irregularities in financial statements
-Focus provided by NOPAT and ROIC

Creating Shareholder Value
-What constitutes "Shareholder Value?"
-Analysis of "The Tube" and its impact on a company's future operations
-Calculate Weighted Average Cost of Capital by using the Capital Asset Pricing Model
-Determining the company's "Beta"
-Determine the Cost of Debt, Preferred Equity and Common Equity
-Develop the EVA?? Model
-Impact of Acquisitions on WACC

Day Two
The Time Value of Money
-The impact time has on the value of money.
-Understand the various interest calculations
-Using WACC and ROIC as benchmarks
-Use Excel??, to determine PV, FV, NPV, IRR, MIRR
-Using MIRR and a basis for capital project evaluation

Evaluating Capital Project Proposals
-Identify the various types of capital projects
-Discuss the capital project evaluation process
-Determining the initial and subsequent capital project cash flows
-Development of the "Hurdle Rate" for capital projects
-Discuss the use of "Terminal Value" in evaluating capital projects
-Evaluate capital projects by applying NPV, IRR, MIRR, and Discounted Payback Models

Day Three
Evaluating the Leasing Option
-Why Lease?
-Leases from American and International perspectives
-Identify the various types of leases
-Discuss the lease evaluation process
-Determining the initial and subsequent cash flows related to leases
-Development of the "Hurdle Rate" for leases
-Discuss the use of "Terminal Value" in evaluating the lease option
-Evaluate leases by applying NPV, IRR, MIRR, and Discounted Payback models

Evaluating Acquisitions and Divestitures
-Understand the nature of Acquisitions and Divestitures (Business Combinations)
-The strategic reasons for Acquisitions and Divestitures
-Pricing a company for sale
-Evaluation of Synergies in an Acquisition
-Discussion of Due Diligence
-The essential components of the Acquisition Team
-The major Takeover Defenses

Day Four
Analyzing The Annual Report
-Ratio Analysis - The heart of Financial Analysis
-Use Excel?? templates to calculate and interpret liquidity, leverage and profitability ratios
-Interpret the results of ratio analysis from an accrual accounting perspective
-The inter-relationship between the DuPont Formula and EVA??
-How to use the Altman Z-Score
-Use various investment surveys to benchmark the results of financial analysis

Cash Flow Analysis and Cash Planning
-Understanding the Cash Flow Statement
-Using the Cash Flow Statement to identify accounting irregularities
-Determine Cash Flows related to Operations, Investing, and Financing activities
-Evaluate the various calculations of "Free Cash Flow"
-Understand the difference between accrual and cash ratios
-Use Excel?? templates to calculate and interpret cash-based liquidity, leverage                 and profitability ratios
-Interpret the results of ratio analysis from a cash accounting perspective

Comprehensive Case Exercise
In order to enhance and reinforce the tools, skills and concepts presented in this program, you will work as part of a financial analysis team, evaluate the financial reports of a real company and present the results of your evaluation

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