HOW TO READ FINANCIAL STATEMENTS LIKE A BOOK IN 5 MINUTES INTERACTIVE COURSE

read1Rapidly learn the language of business

  • Enhance your career if you are in business this is a critical skill for you advancement.
  • Help your clients with their financial goals
  • Know how your business is performing and what you need to focus on to make more profit, cash and improved returns
  • Know how to speak to your banker
  • Know what to look for when you want to invest in a business

This is an innovative course.  It contains practical exercises and has a unique business modeling tool embedded within it.

It is designed for senior managers and professionals, including venture capital managers and others who rely on the financial statements to evaluate and steer businesses.

Income statement, balance sheet, cash flow, ratios, variables, debt, and equity—for many people these terms are like a foreign language. 

This course eliminates the mystery behind the numbers so that you will be able to read financial statements as well as Warren Buffett.

You will learn:

  • How to read and analyze a set of financial reports
  • How to evaluate the effectiveness of a company’s strategy
  • How to identify ways to improve a company’s performance
  • How to be a more powerful communicator by mastering the language of finance.

Acquiring these skills can be costly and time consuming.  For example Harvard Business School offer a 5-day course (Finance for Senior Executives.) that costs $11,250 and Stanford University has one similar (Finance and Accounting for the Non-Financial Executive) for $10,500.

 If you have over $10,000 and a week to spare these are great courses!

However, if you want to study on your own time and are looking for a more cost effective solution—and frankly, one that is more fun and more practical, our course is for you.

Here is what you get:

Module 1: Decoding the Mysterious Financial Statements

  • The 5 Minute Story Method revealed
  • Taking the numbers out of the statements
  • The power and simplicity of the story

Module 2: Introducing the Money Making Machine & the Wealth Creation Engine

  • The foundation of all financial statement analysis
  • The difference between making money and creating wealth
  • Income statement and Balance Sheet Fundamentals
  • How to convert the incomes statement into a more readily understandable concept—the Money Making Machine
  • How to simplify the balance sheet in the form of the Wealth Creation Engine
  • How to assess the ability of any organization to make money and use that money to build future wealth
  • Understand the relationship between the income statements and the balance sheet
  • How the income statement can positively or negatively impact the balance sheet

Module 3: Meet the 3 characters in the financial statement story –Vanity, Sanity & King

3 Characters of the financial story—Vanity Sanity and King as portrayed in the expression: “Revenue is Vanity, Profit is Sanity & Cash is King

  • How the characters interact with each other and how they easily show the integration between the three statements—income statement, balance sheet and statement of cash flows
  • Their unique personalities and how they influence financial story
  • What happens when they don’t work together well
  • The behaviors of the characters and how they influence growth, profitability, cash and returns.

Module 4: The Money Making Machine (Income Statement) and its ability to create equity fuel for the Wealth Creation Engine

We call it the money making machine and like all good engines there are only a few key moving parts. All we need to know the how these moving parts work together to make more money

  • Is all revenue growth good?  Concept of good growth versus bad growth
  • Top Line v Bottom Line Management and how they have different leverage
  • Making Gross Profit great and why this is critical
  • Delivering superior profitability
  • The strategic interplay between Vanity and Sanity
  • Creating the necessary equity for the future
  • How you measure income statement performance
  • Understanding the key inputs and what to look out for
  • Interactive worksheets to show dependencies and sensitivities
  • Telling the income statement story

Module 5: The Wealth Creation Engine.  How to build and operate a lean mean balance sheet machine

  • Simplifying the Balance Sheet—The Wealth Creation Engine
  • The only 5 numbers you need to worry about
  • How we fund the business to be able to grow future profit and cash
  • How the balance sheet tells you the business personality
  • Understand the difference between a healthy and unhealthy balance sheet
  • How the Balance Sheet shows the effectiveness of your supply chain
  • The Hunger Measure—a unique look at working capital

Module 6: All about cash and what the King keeps in his coffers

  • The 3 bank accounts and how they impact cash flow
  • How the Money Making Machine and Wealth Creation Engine create or destroy cash
  • The difference between operational cash and net cash flow
  • The distinction between cash and profit
  • The role of debt-how it impacts cash and risk
  • How cash is intelligently used to fund investments
  • Depreciation & Amortization

Module 7: How to Create the 5 Chapters of the Financial Statement Story

  • Chapter 1: All about revenue Growth
  • Chapter 2: Superior Profitability
  • Chapter 3: Lean Mean Balance Sheet Machine & working Capital
  • Chapter 4: Cash flow and Funding
  • Chapter 5: Return on Capital Employed
  • How to populate the chapters
  • How the chapters link to one another
  • Overall story development

Module 8: You’re Turn to Tell the Story

  • Case Study of a well-known public company
  • Exercise: interpret the given income statement and balance sheet
  • Use the unique interactive modeling tool to test your hypotheses
  • Create the 5 chapters of the story
  • Create a one page financial summary
  • Assess effectiveness of their strategy
  • Identify areas for improvement
  • Summarize and tell the story in 5 minutes or less
  • Pat yourself on the back—you are a financial wizard!

Bonus Module: How to Apply and extend your new financial ability

This module shows you where you can further practice and progress your skills

 We have created the Financial Statement Story Membership Community to provide our members with a forum for discussion and game changing content.  We provide a series of activities and seminars to increase your financial capability that includes:

  • Webinar Master class—advanced method of analysis and competitive evaluation
  • Company Makeovers –we dissect companies and show how we reveal opportunity
  • Discuss strategies
  • Align strategy and financial performance
  • Deliver implementation methodologies
  • Investigate special interest topics e.g. acquisitions etc.
  • Live monthly Q&A
  • Get your own powerful financial statement modeling tool
The 7 stages of working ON the business
Marginal Income Ratio (MIR) Dilemma

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Wednesday, 12 December 2018

Mick Holly & Andre Gien

Wealth Scientists

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