Understanding and Interpreting Financial Statements
To many non-financial managers, the world of financial terminology and
statements is often unclear ... confusing ... even downright frustrating. But,
the truth is, buried within those numbers are often the answers you need to make
smart business decisions.
That is why we developed this workshop — to give professionals like you an
“edge up” by helping you master the meaning behind the financial statements and
terminology you’ve been wrestling with.
Understanding and Interpreting Financial Statements is a comprehensive,
fast-paced day of learning that covers all the essentials. Your expert trainer
will focus on the PRACTICAL, helping you zone in on the important numbers you
should look for and teaching you to ask the questions that’ll give you the real
scoop on the situation.
You’ll leave this workshop able to make better decisions right away as you learn
how to find answers to important questions, such as ...
- When should you lease equipment and when should you buy?
- How much inventory is too much? too little?
- What’s an appropriate return on investment for a product?
- Will there be enough cash flow to cover the bills?
- At what point would investing more in resources and personnel result in
- How do you evaluate the value of a company based on its financial
- What type of depreciation should you plan for on major equipment?
How can you tell whether your department is performing how it should?
- Based on the balance sheet, is an organization’s debt too high?
- How can you tell whether an organization is asset-rich but cash-poor?
- At what point does the variable cost of maintaining a piece of equipment
make that “bargain” initial cost not a bargain at all?
And that’s just for starters!
This workshop is tailored to the mid- to senior-level non-financial
decision-maker who wants to attain a greater functional understanding of finance
and financial statements.
You will sit shoulder-to-shoulder with people like yourself — people who have
reached a level in their organizations that demands a solid understanding of
financial terminology and statements ... people who ultimately drive the success
of their organizations through the quality of their decisions.
Don’t let this important opportunity to hone your financial skills pass you by.
What You'll Learn:
After just one day, you’ll ...
- Thoroughly understand any financial report you read, immediately
recognizing which numbers provide key information
- Accurately measure the financial position of your department, division or
- Evaluate the financial impact of your decisions on your organization’s
bottom line before you make them
- Work confidently with balance sheets, income statements, cash flow
statements and other financial reports
- Recognize the key ratios that can be early indicators of danger ahead for
- Understand what every manager must know about the Generally Accepted
Accounting Principles, or GAAP
- Discuss financial matters with authority and ease with accountants,
bankers, tax advisers and other financial professionals
- Get an instant handle on the financial health of your customers and your
competitors by analyzing their financial statements
- Head off costly mistakes by spotting inaccuracies and questionable numbers
on financial documents
- Contribute your ideas at financial meetings with confidence by fluently
speaking the language of finance
- Save your organization big bucks by analyzing cash flow and discovering
“hidden” expenses that are unnecessary
- Instantly recognize the problems as well as opportunities contained within
the numbers of a financial report
- Analyze financial data and industry trends to make sound long-range
- Know how to determine when leasing equipment is your best financial option
— and when leasing doesn’t pay.
- Forecast costs and revenues with far greater accuracy
- Gain a clearer look at “the big picture” view of your organization’s
- Never again feel intimidated by financial reports, proposals or number
- Increase your value to your organization with your newfound understanding
of financial principles
- Get others to accept your projects and proposals by presenting them in
“bottom line” terms
- Watch your credibility soar as you become recognized as someone who really
Fundamental Financial Concepts and Terms
Gains and losses
The Ins and Outs of a Balance Sheet
Tangible and intangible
Fixed and liquid
and current assets and equities defined
Critical components of
balance-sheet numbers for financial strength — and weakness
Analyzing the Profit and
Statement of operations
Profit and loss statement
Which numbers indicate
how revenue is generated
The “cost of goods”
formula and how to use it
Understanding the role
that depreciation plays
Comparing a favorable
and unfavorable P&L
Examining a P&L
statement to determine your business situation
Deciphering Other Types of Financial Statements
The purpose of the
cash flow statement
cash-flow statement to find out where resources are actually going
How to recognize
cash-flow problems before it’s too late
Forecasting cash flow
— and using this insight when increasing staff, purchasing and cutting costs
Change in equity
statement: What it is and how to use it
Annual reports: Where
to find the numbers that tell the real story
Other types of
financial statements you may encounter
Critical Financial Measurement Tools and Techniques
Tips for scanning any
financial report and zeroing in on the pertinent numbers
Calculating return on
indicators that will tell you if your organization is on the right track
analysis, forecasting and other financial tools to make informed decisions
Valuable questions to
ask before making any decision based on financial-statement numbers
Important ratios that
every non-financial manager should understand
Seminar Check-In 8:30 AM Seminar Class 9:00 AM - 4:00 PM