Corporate Finance: Financial Analysis and Decision-Making

Unlocking Financial Insights for Informed Decision-Making and Valuation Strategies: An In-Depth Course

Created by: Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI

What Will I Learn?

• Apply financial ratios (liquidity, profitability, efficiency) to assess the financial health of companies accurately.
• Analyze financial statements using current ratio, quick ratio, and cash ratio to evaluate the company's liquidity position.
• Evaluate solvency by calculating debt ratio, debt-to-equity ratio, and interest coverage ratio for a comprehensive assessment.
• Assess operational efficiency using inventory turnover, receivables turnover, and asset turnover ratios to identify areas of improvement.
• Utilize forecasting and budgeting techniques to predict sales and cash flow accurately for effective financial planning.
• Perform break-even analysis and analyze leverage to determine the profitability and risk of the company.
• Evaluate financing decisions by considering optimal capital structure and its impact on the cost of capital.
• Manage current assets, including cash, inventory, and receivables, to optimize operational efficiency.
• Apply time value of money principles to calculate present and future values of cash flows for investment analysis.
• Value bonds, common stock, and preferred stock using appropriate valuation methods such as discounted cash flow and comparable analysis.
• Calculate the cost of debt, cost of equity, and weighted average cost of capital (WACC) to assess the investment's financial feasibility.
• Apply capital budgeting techniques (NPV, IRR, payback period) to evaluate investment projects' profitability and viability.
• Use risk tools such as standard deviation, beta, and diversification to assess and manage investment risk.
• Understand the role of investment banking in initial public offerings (IPOs), debt offerings, and mergers and acquisitions (M&A).
• Analyze equity financing options and evaluate their impact on the company's financial structure.
• Evaluate the impact of dividend policy on shareholder wealth and the company's financial stability.
• Examine convertible bonds and warrants as financial instruments for corporate financing strategies.
• Understand the process of corporate acquisitions and post-acquisition integration for effective business expansion
• Evaluate the impact of foreign currency on financial statements in international operations and assess exchange rate risk.
• Apply financial analysis techniques to assess profitability and financial performance in foreign markets.

Requirements

• Familiarity with mathematics and basic algebra.
• Knowledge of Excel or spreadsheet software for financial calculations.

Target audience

• Accounting professionals seeking to enhance their financial analysis skills.
• Business owners and managers who want to make informed decisions based on financial statements.
• Finance professionals and analysts looking to deepen their understanding of corporate finance.
• Students pursuing a degree in accounting, finance, or business administration.
• Individuals interested in learning how to analyze financial statements and make informed investment decisions.