Financial Diagnosis Training

Prerequisites

No prior knowledge is required.

Objectives

◗ Develop the skills to assess a company's financial health.

◗ Identify critical thresholds.

◗ Anticipate the main financial risks.

◗ Develop the ability to assist a partner company in managing its operations.

◗ Send alerts at the right time.

Training program

◗ Introduction

– Best practice: Be prepared to act or react: Map risks related to third parties (customers, suppliers, partners) and define alert thresholds.
– The business model and its connection to the financial cycle: Key metrics by business model: manufacturing, trading, project-based, SaaS/subscription.
– Business failure and its causes: early warning indicators (financial and non-financial) and “false alarms.”
✔ UNDERSTAND | Illustration: business model and complete financial cycle (step-by-step guide and impacts on cash flow).

◗ Financial information

– Overview of available sources (tax return, schedules, reports, RCS extract, public databases).

◗ Reading financial statements to understand the company's economic structure

– Reading the balance sheet, income statement, and cash flow statement: what each financial statement reveals about value creation and solvency.
– Key concepts: assets/liabilities, net income, working capital, cash flow: operational formulas, links between working capital and net cash flow, operating cycle.
– Differences between accounting, financial, and management perspectives
– The financial diagnostic process: a 4-step sequence: data collection → restatements → analysis → conclusions & decisions.
✔ APPLY | Overarching practical case study: using a tax return, reconstruct the balance sheet totals, income statement totals, and cash flow statement totals

◗ Measure profitability, solvency and liquidity through 5 indicators

– EBITDA (or EBE): Economic Logic, Basic Adjustments, Common Pitfalls.
– Financial Structure (Gearing): Net Debt/Equity
– Liquidity (Quick Ratio): Calculation, Interpretation, Limitations vs. Current Ratio.
– Working Capital as a Percentage or in Days of Revenue: Breakdown (Customers/Suppliers/Inventory), Leverage Points.
– Financial Debt to EBITDA (or EBE): Warning Thresholds, Interest Rate Sensitivity.
✔ UNDERSTAND | Ratio Analysis: Graphical Interpretation and Critical Thresholds
✔ APPLY | Step-by-Step Case Study: Using a tax return, calculate and analyze the ratios
✔ EVALUATE | Quiz: In your opinion… is it possible to have a good result and still face cash flow problems?

◗ Complete diagnosis

– Cross-referencing the three states: Consistencies and Warning Signs
– Identifying Strengths, Weaknesses, and Risk Areas: Decision-Oriented “Strengths/Weaknesses/Opportunities/Threats” Analysis
– Developing a Diagnostic Framework for Decision-Making
– Four Key Considerations: What Should You Look For? – Where Can You Find the Information? – How to avoid pitfalls? – When should I raise the alarm?
✔ APPLY | Overarching practical exercise: Based on the ratios calculated earlier, develop an initial assessment
✔ UNDERSTAND | Summary sheets on ratios and alert levels

Why choose this course?

The long-term viability of partner companies is a key factor in the success of sales, purchasing, sourcing, and business development activities. As a result, many people within the company are called upon to assess a financial analysis. This is often done on short notice, based on incomplete data.

Over the course of two days, this training course teaches you a method for making the most of the available information and asking the right questions.

Teaching and assessment methods

Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.

Teaching Methods: A variety of teaching methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.

Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.

During the training: theoretical concepts are alternated with examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.

Training monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.

Price

1,860 EXCL.

Testimonials

Financial diagnosis training

Jonathan C.
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Training

Generalist trainings

Financial Diagnosis Training