FINANCIAL ANALYSIS FOR MANAGERS

From Financial Statements to Business Decisions

Numbers show the result. Analysis reveals what is really happening inside the business.

The training is based on working with a real set of company financial statements. Participants receive a balance sheet and income statement and then analyse the company’s financial condition step by step.

This is not an accounting course.

The objective is to teach managers, business owners and decision-makers how to read the numbers, connect financial information and turn it into practical business conclusions.

From individual ratios to the company’s story

During the training, participants progressively analyse:

* sales and profit growth,

* operating margin and return on sales,

* ROA and ROE,

* financial liquidity,

* net working capital,

* debt levels and Debt/Equity,

* asset efficiency,

* receivables, payables and inventory turnover,

* the impact of inflation on the company’s real growth.

Each new indicator adds another piece to the overall picture of the business.

We do not simply ask:

“What is the result?”

We ask:

“Why is the result at this level, and what does it mean for the business?”

DuPont — where the numbers come together

The DuPont model becomes the culmination of the analysis:

ROE = margin × asset efficiency × financial leverage

A high ROE may indicate a highly efficient business.

But it may also be driven by increased debt.

The management question is therefore not:

“Did ROE increase?”

but:

“Why did ROE increase?”

Nominal growth does not always mean real business growth

The next layer of the analysis is inflation.

If sales increase by 8% while prices increase by 5% over the same period, the company’s real growth is approximately 2.9%.

For a decision-maker, this tells a very different story.

From financial analysis to an early-warning system

At the final stage, all previous findings are considered together.

Early-warning models, including the Altman Z-score, allow us to move from individual financial ratios to a much more important question:

Are the company’s financial results beginning to show warning signs?

The training journey

WHAT DO I SEE?

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WHAT HAS CHANGED?

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WHY?

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WHAT DO THE FINANCIAL RATIOS TELL ME?

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HOW ARE THEY CONNECTED?

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WHERE IS THE RISK?

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WHAT MANAGEMENT DECISION SHOULD I MAKE?

One set of financial statements.

Multiple layers of information.

One coherent story about the financial condition of the business.