FINANCIAL ANALYSIS JOIN OUR TRAINING AND FIND OUT HOW MUCH YOU COULD ADD YOUR

UNDERSTANDING ON HOW TO ANALYZE THE FINANCIALS OF A BUSINESS EVEN IF YOU DO

NOT HAVE FINANCE BACKGROUND

WE WILL NOT BRING YOU TOO MUCH ON UNDERSTANDING STANDARD FINANCIAL

STATEMENTS ANALYSIS RATIOS….PROBABLY TOO BORING FOR YOU….

Financial Analysis is NOT Financial Statements Analysis

FINANCIAL ANALYSIS IS NOT FINANCIAL STATEMENTS ANALYSIS AND CERTAINLY THIS IS

NOT YOUR FATHER’S ACCOUNTING TEXTBOOKS!

First, we are not accountants, BUT, we will see the Financial Statements from a Corporate Finance perspective.

We do not want to be as precise and exhaustive as an accountant!

We want to focus on big items that are economically meaningful, BUT as the saying

goes, THE DEVILS ARE IN THE DETAILS. Then, the BIG PICTURES MATTER MORE BEFORE we

are going into the details.

Profitability per se cannot fully measure value because it does not factor in risk.

Accounting items can be manipulated and they may not consider the time value of money and the opportunity cost of capital.

What Berkshire Hathaway Sees?

ONE LEG OF VALUE FOUNDATIONS

ANYTHING THAT DOESN'T INCREASE

CASH FLOW DOESN'T CREATE VALUE

(UNLESS IT REDUCES RISK OR GIVES THE COMPANY VALUABLE OPTIONS

but ARE YOU SURE YOU COULD COMPUTE THIS MORE RELIABLY THAN CASH?

MAXIMIZING SHAREHOLDER VALUE: A FAD?

DRAW YOUR OWN OPINION AFTER ATTENDING THIS CLASS!!!

Training Objectives

We will bring you to see what matters from THE TERMS IN the financial

statements for financial analysis purposes

In practice, financial analysis has narrowed down to follow a prescribed

routine, filling in boxes with standard financial ratios, calculated

according to precise and inflexible definitions. However, there is a more

professionally challenging and rewarding alternative, than operating in a

purely mechanical manner

Training Objectives

We focus on large contributions to the corporate income (in other

words, forget the small accounting items). Save your time, no concern

for exhaustivity (you could smile…)

Focus on what matters in finance (and the repayments of your lending

as well):

• Cash flows..cash flows…cash flows.. (do they create value?)

• Debt and leverage (for risk analysis)

• Profitability (for returns to shareholders)

Training Objectives

We share this training for managers (and future managers) who want their companies to create

value.

We believe that clear thinking about value creation and skills in using it to guide business decisions,

are prerequisites for success. Business managers and financial managers do not always understand

value well enough. But they must understand it if they are to do their jobs well and fulfill their

responsibilities.

Specifically, managers must not only have a theoretical understanding of value creation, but must

be able to create tangible links between their strategies and value creation.

We explain why value creation should be part of a company's culture and how it manages itself on

a day-to-day basis. And we provide detailed explanations for measuring value.

Points of Reminder

In finance, risk and return are two sides of the same coin. Higher

returns can only be achieved at the price of higher risk. And if the

risks are higher, the likelihood of them materialising is higher too. This

is a fact of life you should never forget or you may live to regret it

sorely.

The purpose of the financial reporting may be to get “cheap” capital….Don’t you agree?

Are you sure you want to put more focus on standard financial

statement analysis ratios?

What is Financial Analysis for?

For shareholders, financial analysis assesses whether the company is able to

create value. It usually involves an analysis of the value of the share and

ends with the formulation of a buy or a sell recommendation on the share.

For lenders, financial analysis assesses the solvency and liquidity of a

company, i.e. its ability to honour its commitments and repay its debts on

time. BOTTOM LINE : VALUE ….VALUE

a value-creating company will be solvent and a

value-destroying company will, sooner or later, face

solvency problems

Question: Are you familiar with this?

Generic Business Model is a “Cash Pump” cycle

Answer: Is this Enough for Financial Analysis?

Training Syllabus

The Finance Function(Everybody is Finance People)

What Determines Company’s Growth? The Obsession for Growth? Is This Value-Creating Growth?

Financial Statements and Cash Flow

Earnings

Capital Employed and Invested Capital

Walking Through from Earnings to Cash Flows

How to Perform a Financial Analysis

Margin Analysis : Structure

Margin Analysis : Risks

Working Capital and Capital

Expenditures

Financing

Return on Capital Employed and Return

on Equity

Conclusion of Financial Analysis

Value and Corporate Finance

Measuring Value Creation : Financial

Indicators and their Shortcomings

Value-Based Management : Look for the

Drivers!

Training Desktop

Date : please check it in at “futurum corfinan” (2-day training)

Venue : Hotel at Jakarta Pusat

Notes :

• Basic accounting skills are required to attend the training class. If not, it means the participants

will follow the top-down approach, knowing the big pictures before diving into the accounting

class in other trainings.

• Presentation slides will be distributed in softcopy

• Minimum participants = 10 persons

• After the training, participants can still discuss about the training materials via email

Contact email : futurumcorfinan@gmail.com

Visit Website and Training Testimonials : google “futurum corfinan”

Train Your Employees!

By now, we’ve probably all heard the

classic HR executives’ exchange —

Colleague #1: “What if we pay to train our

people and they leave?”

Colleague #2: “Right, but what if we

DON’T train them and they NEVER

leave?!?”

We can all agree that the latter scenario

is worse.