Balance Sheet Analysis

  • The reclassification of balance sheets 
  • ‘Profit and Loss’ reclassification: Value Added and Ebitda
  • ‘Profit and Loss’ reclassification: Contribution Margin
  • ‘Assets and Liabilities’ reclassification
  • The second level of ‘Assets and Liabilities’ reclassification: Net Invested Capital and Financial Backings.
  • Ms Excel® exercise.

Ratios and special topics

  • Testing balance sheets quality: is the book cooked?
  • Liquidity, profitability and structure Ratios 
  • ROI break up: the DuPont matrix
  • IAS 17 and leasing contracts impact on balance sheet
  • Financial Break even point 
  • Fixed costs multiplier
  • Ms Excel® exercise.

Cash flow Statement

  • Financial dimension vs. P&L and A&L dimensions of analysis.
  • Different types of cash flow statement: IAS 7, OIC 10 and financial cash flow statement.
  • How to build a financial cash flow statement.
  • Ms Excel® exercise.
  • How to use cash flows for debt sustainability analysis:
  • The DSCR (debt service coverage ratio)
  • The LFCR (loan life coverage ratio)

Business Planning: soft features.

  • Value creation and value drivers: understanding qualitative aspects.
  • The role of the business plan as a strategic planning instrument.
  • Understanding the real purposes of business planning.
  • When a business plan is really complete: to have the right questions it’s better than get the right answers.
  • Common errors in prevision phases.

Business Planning: how it is built.

  • From the business plan revenues based to the business plan break even based.
  • The contribution margin puzzle.
  • The 10 phases of planning: when a business plan is comprehensive.
  • Ms Excel® example: modelling the first year of a business plan.
  • Study of debt sustainability: the four rules of debt.

Business plan: Do it yourself!

  • Ms Excel® modelling.
  • Exercise: build by yourself the second year of the business plan.
  • The stress test phase.
  • Discovering weaknesses of business plans: inconsistent hypothesis, three equilibriums test (patrimonial, economic and financial), ratio analysis.