Financial Analysis and Forecasting Workshop

Financial Analysis and Forecasting

What is it about?

This workshop familiarizes participants with the principles of financial reporting and analysis enshrined in the financial statements with a view to enabling them to make informed decisions using financial statements. The workshop covers tools and techniques of financial analysis and how financial ratios can be incorporated in predictive models of forecasting company failure.

Participants will be empowered with the knowledge and skills to ask the right questions when faced with financial statements for enhanced and value-adding economic decision making.

Day 1

Workshop Overview

Objectives of Financial Statements
Role of Financial Reporting
Key Financial Statements
Statement of Comprehensive Income (Profit/Loss)
Statement of Financial Position (Balance Sheet)
Statement of Cash flows (Cash flow Statement)
Statement of Changes in Equity
Profit and Loss Statements
Elements (components), Principles (Revenue Recognition and Accrual Accounting)
Principles (Expense Recognition and implications)
Profitability Ratios (EPS and dilutive and non-dilutive securities)
Common Size financial Statements
Interpretation of comprehensive income statements

Balance Sheets
Elements and accounting equation
Common Size Balance Sheet
Interpretation of Balance Sheets
Balance Sheet Ratios
Liquidity and Solvency Ratios
Cash flow Statements
Elements of Cash flow Statements
Relationship between Cash flow, Profit and Loss and Balance Sheet
Interpretation of cash flows and common size cash flow statements
Free Cash flow to the firm
Free Cash flow to equity
Interpretation of cash flow performance and coverage ratios
Tools and techniques of financial analysis

Day 2

Financial Analysis and Forecasting
Classification of Ratio Analysis (activity, liquidity, solvency, profitability, valuation)
Inter-relationships among ratios
Du Pont Ratio Analysis and tailor made analysis (equity, credit analysis etc)
Use of ratios in the forecast of earnings
Are accounting ratios reliable predictors of company failure?
Do market-driven variables play a role in predicting company failure?
Altman Z-Score Model and other models

Predictive Value of Ratio of Working Capital To Assets
Predictive Value of Ratio of Retained Earnings To Assets
Predictive Value of Ratio of Earnings before Interest and Taxes To Assets
Predictive Value of Ratio of Market Value of Equity to Book Value of Total Liabilities
Predictive Value of Ratio of Revenues to Assets
Empirical Validity of Predictive Models – Altman Z-Score (Z = 0.012X₁+ 0.014X₂+ 0.033X₃+ 0.006X₄+ 0.999X₅)

Simbarashe Manwere

Simbarashe Manwere has over two decades of financial markets experience spanning the product areas of investment banking, commercial banking and asset management together with training and human capacity development in the same.

He is currently a Key Individual (KI) in terms of the Financial Advisory and Intermediary Services (FAIS) Act, of Abib Capital, an authorised financial services provider (FSP). He has served as a Governor on the Board of the South African Institute of Financial Markets (SAIFM) for the past six years. He has been with, inter-alia, New York-based boutique investment banking firm, Fieldstone Private Capital Group, listed mortgage provider FBC Building Society, commercial bank NMB Bank and Unum Capital.

He is a Fellow of the South African Institute of Financial Markets (SAIFM), a Chartered Member of the United Kingdom (UK)-based Chartered Institute of Procurement and Supply (CIPS), an Honorary Life Member of CIPS, Recipient of the CIPS President’s Award, a member of the University of South Africa (UNISA) Academic Advisory Board for the College of Economic Management Sciences (CEMS) and the Tshwane University of Technology (TUT) Academic Advisory Board. He is a contributing author to the 6^th Edition (2019) of the leading text, Understanding South African Financial Markets, published by Van Schaik. Other publications include Financial Markets and Portfolio Management and Public Finance published by the Zimbabwe Open University (ZOU).

Simbarashe holds a Diploma in Banking, Professional Diploma in Procurement and Supply, Bachelor of Commerce (B.Com) Honours in Finance and Master of Science (MSc) in Finance and Investments.

He trains financial markets in East and Southern Africa.

Bookings

CPD

CPD for FAIS purposes
This workshop provides verifiable CPD points in terms of the Determination of Fit and Proper Requirements for Financial Services Providers, BN 194 of 2017, provided that the content is appropriate for your role within the company. A certificate of attendance will be issued that could be submitted to your company’s compliance officer. The number of verifiable CPD hours will be up to 10 hours.

CPD for SAIFM members’ purposes
This workshop provides verifiable CPD points in terms of the CPD policy of SAIFM provided that the content is appropriate for your current or future role within the company. A certificate of attendance will be issued, which should be retained and submitted should you be selected for a SAIFM member CPD audit. The number of verifiable CPD hours will be up to 10 hours.

Queries

All queries can be directed to Melissa Joao: melissa@saifm.co.za / 011 802 4768

DATE TBC

TIME 08H30 – 16H00

COST
SAIFM Full members pay R6491.75 per person (Inc. VAT)
SAIFM Affiliate members pay R7104.70 per person (Inc. VAT)

Please click here to view the workshop delegate terms and conditions.