MAHARAT CENTER

Measuring Financial Performance

Introduction

Training course introducion / brief

This training course is designed to provide participants with a comprehensive understanding of financial performance measurement. Starting with the fundamentals of financial statements, the course progressively covers detailed financial ratio analysis, budgeting and forecasting techniques, performance measurement systems, and advanced financial decision-making tools. Through a mix of theoretical insights and practical applications, participants will learn how to assess financial health, drive strategic decisions, and improve overall financial performance within their organizations. Interactive sessions, case studies, and hands-on exercises will ensure that participants can apply these concepts effectively in their professional roles.

Course Objectives

At the end of the training course, participants will be able to

Gain comprehensive understanding and skills to read, interpret, and analyze financial statements comprehensively.
Develop a deep understanding of financial ratios and their implications for business performance.
Obtain practical knowledge on budgeting, forecasting, and the techniques necessary for effective financial planning.
Explore advanced performance measurement systems and their role in strategic management.
Enhance abilities in advanced financial analysis and decision-making, preparing them for complex financial challenges.

Programme de la formation

Day one

Understanding Financial Statements
The Balance Sheet: Assets, Liabilities, and Equity
Income Statement: Revenue, Expenses, and Profit
Cash Flow Statement: Operating, Investing, and Financing Activities
Statement of Shareholders’ Equity
Key Financial Ratios: Liquidity, Solvency, and Profitability
Common Size Statements: Vertical and Horizontal Analysis
Interpreting Financial Statement Notes

Day two

Financial Ratio Analysis
Liquidity Ratios: Current Ratio, Quick Ratio
Solvency Ratios: Debt to Equity, Interest Coverage
Profitability Ratios: Gross Margin, Net Profit Margin, Return on Assets (ROA), Return on Equity (ROE)
Efficiency Ratios: Inventory Turnover, Receivables Turnover
Market Ratios: Earnings per Share (EPS), Price to Earnings (P/E) Ratio
DuPont Analysis: Decomposing ROE
Comparative and Trend Analysis

Day three

Budgeting and Forecasting
Types of Budgets: Operating, Capital, Cash Flow Budgets
Budget Preparation Process
Forecasting Techniques: Qualitative and Quantitative Methods
Variance Analysis: Identifying and Analyzing Deviations
Rolling Forecasts and Flexible Budgets
Linking Budgets to Strategic Goals
Scenario Planning and Sensitivity Analysis

Day four

Performance Measurement Systems
Balanced Scorecard: Financial and Non-Financial Metrics
Key Performance Indicators (KPIs): Selection and Measurement
Economic Value Added (EVA) and Residual Income
Benchmarking: Internal and External Comparisons
Performance Dashboards and Reporting Tools
Linking Performance Measures to Incentive Systems
Continuous Improvement and Feedback Loops

Day five

Advanced Financial Analysis and Decision-Making
Capital Budgeting: Net Present Value (NPV), Internal Rate of Return (IRR)
Cost-Volume-Profit Analysis
Break-Even Analysis
Risk Analysis and Management: Sensitivity, Scenario, and Simulation
Financial Modeling and Forecasting Tools
Mergers and Acquisitions: Financial Due Diligence
Strategic Financial Planning and Analysis

Management