Analysing Your Business

using Financial Ratio GUIDE TO CRITICAL NUMBERS THAT DRIVE YOUR BUSINESS

There are 4 big issues in business :

These four variables have interconnecting links.

There is a balance that can be maintained

between them and, from this balance, will

come corporate value. It is corporate value

that is the reason for most business activity and,

for this reason, this training focuses on the

business ratios that determine corporate value.

Business Ratio Example : Operating

Performance and Growth Measuring

Operating Performance Growth Measuring

Business Ratio Example : Corporate

Liquidity and Working Capital

Corporate Liquidity Working Capital

Training Agenda : Foundation

1. Background

• The form and logic

• Method

• The Excitement

• Data that makes sense .

2. Balance Sheet and Profit Loss Account

• Balance sheet structure – fixed assets

• Balance sheet structure – liabilities

• The Terms Uses

• Profit and Loss Account

Training Agenda : Operating

Performance

3. Measures of Performance

• Relationships between the balance sheet and profit and loss account

• The ratios ‘return on total assets’ and ‘return on equity’

• Balance sheet layouts

4. Operating Performance

• Return on investment (ROI)

• Return on equity (ROE)

• Return on total assets (ROTA)

• Standards of operating performance

5. Performance Drivers

• Operating performance

• Operating profit model

Training Agenda : Corporate Liquidity

6. Cash flow cycle

• Corporate liquidity

• The cash cycle

• Measures of liquidity – long and short analysis

7. Liquidity

• Short-term liquidity measures

• Current ratio

• Quick ratio

• Working capital to sales ratio

• Working capital days

8. Financial Strength

• Interest cover

• ‘Debt to equity’ ratio (D/E)

• Leverage

9. Cash Flow

• The cash flow statement

• Sources and uses of funds – method

• Opening and closing cash reconciliation

• Long and short analysis

Training Agenda : Determinants of

Corporate Value

10. Corporate Valuation

• Introduction

• Share Values

• market capitalization

• share values, nominal, book, market

• earnings per share (EPS)

• dividends per share (DPS)

• dividend cover and the pay-out ratio

• earnings yield

• dividend yield

• price to earnings ratio (PE)

• market to book ratio.

11. Financial Leverage and Corporate Valuation

• Financial leverage

• Market to book ratio

12. Growth

• Growth Analysis

• Growth equilibrium

• Application to acquisitions

Training Agenda : Management

Decision Making

13. Cost, Volume, and Price

Relationship

•Costing illustration

•Contribution

•Break-even (B/E)

•Contribution to sales percentage (CPS)

14. Investment Ratios

•The problem

•Steps to a solution

•Present value (PV)

•Internal rate of return (IRR)

15. Shareholder Value Added (SVA)

•Approach to Valuation

•Value for the equity shareholders

•Discount factor

•Terminal (continuing) value

16. Acquisition Analysis

•Case Example PT A & PT B Acquisition

•Acquisition impact on EPS

•Shareholder effects – generalized

•Relative versus absolute values

17. Integrity of Accounting Statements

•Where we focus attention

•Operating revenue enhancement

•Methods of revenue enhancement – fictitious sales

•Revenue enhancement – clues for detection

•Operating cost

•The balance sheet

•The cash flow statement

Training Desktop

Date : please check it in at “futurum corfinan”

Venue : Hotel at Jakarta Pusat

Notes :

Presentation slides will be distributed in softcopy

Minimum participants = 10 persons

After the training, participants are allowed to discuss about the training materials via email in the website

Contact email : futurumcorfinan@gmail.com

Visit Website and Training Testimonials : google “futurum corfinan”