Advanced financial analysis of large corporates
London Stock Exchange, London
This one day course will provide intense practical training to professionals involved in counterparty analysis who currently have a basic understanding of corporate financial statements and wish to deepen and develop or update their knowledge and skills.
This one day course will provide intense practical training to professionals involved in counterparty analysis who currently have a basic understanding of corporate financial statements and wish to deepen and develop or update their knowledge and skills. It will cover reviewing and appraising publicly quoted and other large corporates with revenues greater than £75m. It will provide an understanding of the external ratings and the measures used by share analysts.
By using a real life example as a case study the course will enable you to discuss with confidence the in depth management and financial issues and develop knowledge of the following key areas:
- How important is sustainable profit? (The Income statement)
- Does the structure of the balance sheet (now the Statement of Financial Position) affect a corporates rating and why?
- How a company can manipulate their accounts. How creative accounting can be identified.
- The importance of a business generating consistent cash flows
- The external analyst or rating agency use financial ratios to assess performance.
- Why corporates fail?
- How to review complex corporate structures.
Who should attend
This one day module has been designed to appeal to the following professionals:
- Investor relations officers
- Media professionals and financial journalists
- Insurance intermediaries
- Credit and ratings analysts
Other programmes in this series:
This one day training programme explores financial statements and ratios used in analysing corporate business performance. By using a real life example case study, the course will enable you to discuss financial issues with confidence.
Registration fee: £695+ VAT or £1,000 + VAT when purchasing both Understanding Corporate Financial Statements and Advanced Financial Analysis of Large Corporates
CPD points: This programme attracts 6 CPD points.
Assessing ratios and margins: Asset investment and Earnings
- Evaluating the business model: assessing management’s strategy and its success.
- Focusing on ratio tools to analyse asset efficiency: working capital and fixed assets
- Key ratios used by lenders – why are they used?
- Analysing business and risk profiles: Determining key industry drivers and company specific variables: using qualitative and quantitative tools as the foundation to assess future performance, including the ability to sustain EBITDA.
- Relationship between gearing and shareholder return (ROE, ROCE, PEG).
Understanding the Company’s funding strategy – Solvency and Liquidity
- Diversifying funding sources.
- Measuring financial risk and debt servicing ability
- Quantifying borrowing requirements: refinancing versus new debt need.
- Using business risk to gauge the appropriate level of financial risk.
- Assessing liquidity and a company’s financial flexibility: access to markets
- Balance sheet and cash flow indicators of company liquidity
- Measuring solvency: leverage ratios.
The drivers and importance of Cash flow
- Transactional flows of cash
- Analysis of cash flow statements
- Working capital and net working capital
- Depreciation vs capex requirements
- Operating free cash flow and debt service
- Debt service coverage ratios
- Quantifying performance looking beyond EBITDA: defining and using operating cash flow to analyse profitability.
Understanding what drives creative accounting
- The common methods of accounting manipulation
- Methods of identifying creative accounting
- The importance of notes to the accounts
- Examples of recent creative accounting.
- Debt profile: assessing appropriateness - the amount and structure of the debt, ranking and priority in liquidation
- Risks specific to group structures and borrowers: legal, structural and economic subordination. Challenges to establishing and maintaining ranking.
- Defining safeguards (e.g. covenants, conditions precedent, events of default) as a means to minimise the risks and act as early warning signals and protect lenders from risk e.g. change in control, restriction in sale of assets, rating triggers.