Understanding the Balance Sheet
Understanding the Balance Sheet
Learn how to interpret a company’s financial position and use balance sheet information to make better business decisions.
Duration: 1 day / 8 hours
Format: In-person, online or in-house
Level: Beginner to intermediate
About the Course
The balance sheet is one of the most important financial statements for understanding a company’s financial position.
This practical course helps managers, entrepreneurs and non-financial professionals understand assets, liabilities, equity and the financial risks affecting a business.
What You Will Learn
- Understand the structure of a balance sheet.
- Identify assets, liabilities and shareholders’ equity.
- Interpret liquidity and solvency.
- Understand working capital requirements.
- Identify financial warning signs.
- Use balance sheet information in management decisions.
Course Programme – 8 Modules
Introduction to the Balance Sheet
What a balance sheet represents, its purpose and the accounting equation: Assets = Liabilities + Equity.
Company Assets
Non-current assets, current assets, inventories, receivables, cash and cash equivalents.
Company Liabilities
Short-term and long-term liabilities, bank loans, trade payables and other financial obligations.
Shareholders’ Equity
Share capital, reserves, retained earnings and the financial position attributable to shareholders.
Working Capital
Net working capital, inventories, receivables, payables and their impact on business liquidity.
Balance Sheet Financial Ratios
Current ratio, quick ratio, debt-to-equity ratio and solvency indicators.
Practical Financial Analysis
Compare balance sheets across financial periods, identify trends and recognise potential financial risks.
Case Study and Exercises
Analyse a simplified balance sheet, calculate financial ratios and develop management recommendations.
Who Should Attend?
- Business owners and entrepreneurs
- General managers and department managers
- Sales and marketing professionals
- Operations managers
- Professionals without formal accounting training
Key Benefits
By the end of the course, participants will be able to interpret a company’s financial position, identify potential risks and use balance sheet information to support better commercial and management decisions.
Understand the Numbers. Make Better Decisions.
We offer individual and customised corporate training programmes.
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