Chat Support Software

For management training, sales training and customer care training 01509889632 or request call back

Filter Courses

Our top 6 steps to understanding financial statement

Being able to understand the financial statements generated for your business is crucial, especially in unsettling and uncertain times. This will provide you with essential data when it comes to the current financial health of the business and what risks and opportunities might lay ahead.

  1. Value chain analysis

The first step required is all about context. Identify the chain of steps involved in what the business makes or provides to customers, from creation to distribution.

  1. Look at what is on offer

It’s essential to get perspective on the business offering. This will include current profit margins and the USP of the business and the product or service. You’ll need to be able to identify factors such as brand awareness and commitment among customers, as well as cost control, supply chain and geographic reach.

  1. Review the structure of the statements themselves

At this stage you’re looking to understand whether the statements are well constructed and offer all the necessary information. For example, does the balance sheet provide an accurate overview of the business’ financial state? Does the income statement give you all the information that you need when it comes to economic performance? And when you’re looking at the cash flow are you able to clearly see where cash came into the business and where it went out and how liquidity within the business has changed over time as a result?

  1. The analysis stage

Financial statements really come into their own with respect to making decisions about the future of business and planning strategy. This can involve some key analysis, including looking at how profitable the business is relative to its assets and how profitable it seems to key stakeholders such as shareholders. Financial statement ratios such as asset management, debt management/coverage, risk/market valuation and liquidity are all going to be essential when it comes to taking the information in financial statements and converting it into analysis that can be productively used.

  1. The forecasting element

It’s often difficult to take existing data and turn it into a prediction for the business in the future but this is also an essential part of strong ongoing management. Making assumptions about the future of the organisation like this – in the context of the industry in which it operates – will steer decisions made for both cash flow and funding so it’s key that they are based on strong data and sensible forecasting.

  1. Establish a valuation approach

Being able to value the business is essential, and not just in a situation where it is about to be sold on. There are a number of different approaches available when it comes to valuation, from a discounted cash flow methodology to accounting-based or relative valuation strategy.

Financial statements offer key insight into the way that the business is performing and the potential that it has for the future. Understanding them is the first step towards being able to use this data to make a positive difference.

Find out more by booking onto our Interpreting Financial Statements training course…

In-House Training with PTP

PTP stands for Practical Training for Professionals and our aim is to make our training as practical as possible so delegates can return to the workplace with skills they can implement immediately. PTP now delivers training to over 40% of the FTSE 100.

What you get for your money

What is 1-to-1 training?

1-to-1 training can be based on any of the 100 plus courses that PTP provides, it includes an initial telephone conference of up to 1 hour, a 1/2 day (3.5 hours) on-site one to one training session at your premises with one of PTP's expert trainers and then a further telephone conference call of up to an hour within 2 weeks of the on-site visit.

You have the option of a line manager being involved in both telephone conferences, the second telephone conference which can be for feedback and action planning is generally scheduled during the on-site visit.

Who does 1-to-1 training suit?

Individuals taking on a new challenge or responsibilities. Professionals who want a trusted "sounding board" and thinking partner. Executives or managers who want to enhance their leadership effectiveness to achieve organizational and career success. Executives and professionals wanting to compete successfully but still retain balance in their life. Individuals who want to understand their blind spots so that they don't stand in their own way on their path to success. Executives and Professionals who want to improve their interpersonal skills so as to be more effective with bosses, peers, subordinates, or people in general. How much does 1-to-1 training cost?

A 1-to-1 training session costs from as little as £400 + VAT and will include an initial telephone conference of up to 1 hour, a 1/2 day (3.5 hours) on-site training at your premises and then a further telephone conference call of up to an hour within 2 weeks of the on-site visit.

What is U-Choose?

Choose from any of the 150 plus courses that PTP provides, and choose from 1 of our 50 plus UK wide training venues. You must book for 2 or more delegates and at least 4 weeks in advance, but that’s it, the course you want where you want it. The reason we ask for a minimum of 4 weeks notice is to enable us to market the course you have scheduled to other companies and organisations. However, if we fail to sell any additional places we guarantee to run the course just for you.

How much does U-Choose Training cost?

U-choose costs the same as our normal open courses i.e. the normal delegate rate. This includes lunch and refreshments throughout the day, framed certification and comprehensive training notes. A U-Choose booking can only be confirmed once we receive payment which can be made via credit/debit card, BACS or cheque. Payment is due at least 4 weeks before the date you request. Please note to be eligible for U-Choose you must book a minimum of 2 delegates on the same course & date.