3-4-5 DAYS


Know the organization of the company

  • Legal forms and operating rules of companies
  • The resulting information obligations of the EC

The balance sheet: understanding the financial structure of the company

The balance sheet:

  • Heritage function,
  • Notion of heritage role,
  • Understand the structure of the balance sheet,
  • Highlighting the different items in the balance sheet,

The assets of the company,

Fixed assets,

Current assets,

The liabilities of the company,

Own funds,

The debts of the company,

Understand and analyze the balance sheet appendices,

Explanation of the variation of certain items: fixed assets, depreciation and provisions,

Schedule of debts and debts,

Commitments given and received but not recognized (« off-balance sheet » commitment): leasing, expected effects not yet due, guarantee …

Balance sheet: cash function.

Functional analysis of the balance by cycle,

The operating cycle, short cycle

The cycle: purchasing-storage, production, sales,

Setting up of current liabilities,

Setting up of current liabilities,

The investment cycle, long cycle

The notions of investments,

Highlighting stable jobs: acquisitions of durable goods,

The financing cycle:

Long cycle concept, stable resources,

Establishment of own resources,

Establishment of external resources.

Functional balance construction

Understand the logic of the functional assessment

Understand the funding study,

Distinction between long cycles (investment and financing) and short operating cycles.

Understand the broad masses of the functional balance sheet (stable jobs, stable resources, current assets, circulating debts).

Establish the functional balance sheet

Set up functional balance items

The restatement of certain accounting information:

The value of assets (stable and circulating),

Restatement of depreciation and impairment,

The reprocessing of bank loans,

Restatement of marketable securities (VMP).


Functional balance analysis

Balance sheet analysis using 3 tools:

Global Net Working Capital (FRNG)

Understand the working capital,

Calculation of the working capital,

Diagnose the results of the FRNG,

The working capital requirement (BFR)

Origin of need in working capital,

Calculation of different ways of the BFR,

Distinction between BFR and BFRHE (need of working capital excluding exploitation).

Net cash

Understand the role of treasury,

Adjustment of the FRNG and BFR based on net cash,

Appreciate the financial balance of the company.

Linking the 3 management tools,

Comparison of 3 tools to find business management solutions,

Scenario and search for steering solutions.

The ratios resulting from the functional assessment

To measure synthetically the financial structure of the company and the performance of the company,

An analysis of the evolution over time of the financial situation,

Comparisons of the current situation of the company with that of companies in the same sector of activity.

The analysis ratios of the financing structure:    

The structural funding ratio (or capital funding ratio),

The financial independence ratio,

Inventory turnover ratios:

Time limit for disposal of merchandise stocks,

Delay of stocks of finished products,

Customer payment deadline,

Time of settlements of the suppliers.

Case study: deciphering the balance sheet of a company


Profit and loss account: read the activity of the company

The income statement :

Distinction in the balance sheet and profit and loss account,

Understand the formation of the income statement,

Understand the different items in the income statement,

The classification of loads and products,

Expenses and revenues are different from purchases and sales.

Charges and products are classified in three categories:

Expenses and revenues,

Expenses and financial products,

Expenses and exceptional products.

The distinction is particularly important with respect to fixed assets, inventories and provisions.

Fixed assets and depreciation,

Inventories and changes in inventories,

Provisions and precautionary principle.

Analysis of the income statement,

Understand the different stages of the formation of the result,

Establishment of an income statement analysis,

Measure the performance of the company.

Intermediate management balances (GIS)

Understand the operation of loads and products of the same nature.

Calculation of the different balances:

The commercial margin,

Judge the commercial performances

The production of the exercise,

Measure the activity of industrial enterprises

Added value

Measure the wealth created by the company during the production process

Gross operating surplus (EBITDA)

Measure the performance of the company regardless of its mode of financing, choice in terms of investment, and exceptional items.

Operating profit 

Measure the profitability of the main activity of the company.

Profit before tax 

Measure the effectiveness of the financial function of the company.

The exceptional result

Give an indicator on operations that are not reproducible from year to year.

The result of the exercise 

To quantify the profit, thus what will be able to be distributed totally or partially to the shareholders.

The gain or loss on disposal 

Representation of disposals of the company’s fixed assets,

Use in the calculation of cash flow (CAF).

The contribution of GIS in the analysis of the activity and the profitability of the company.

Case study: analysis of the income statement of a company


Evaluate the investment and financing of the company

Analysis of the activity                                                        

Activity ratios

Profitability ratios

Cash flow (CAF)

Presentation of the CAF,

Multiple choices of financing,

External resources,

Internal resources,

The concept of payables and cashable products,

Non-disbursable expenses and non-cashable products,

The case of proceeds from the sale of assets.

The calculation of the CAF

Calculation from the EBE,

Calculation from the result of the exercise.

CAF Interpretation

Concept of potential cash flow,

Indicator of the financing potential of the company.

The use of CAF 

Remuneration of the shareholders,

Finance the company’s investments,

Reimburse any debts of the company,

Finance the current activity of the company (BFRE).

The behavior of the charges in relation to the activity

Operating expenses or variable expenses,

Structural charges or fixed charges,

Classification of variable and fixed loads.

Differential income statement

Composition of the differential income statement

Concept of turnover

Notion of variable and fixed loads,

Notion of margin on variable cost

Notion of the variable cost margin rate.

Profitable level

Break-even concept,

Determination of the break-even point in value,

Determination of break-even point in quantities

Graphical representation of the break-even point

Measure the risk of exploitation

The safety margin and the safety index

Determination of the decrease of sustainable turnover by the company,

Percentage determination.


Notion of the breakeven point and calculation in number of days to reach the breakeven point.

The operational lever 

Concept of operational leverage,

Measure in relative value, the impact of the result of a change in turnover. 

Case study on investments and financial analysis


Calculate cash flow (EB operating budget)

Elaborate an annual income statement,

Elaborate a table of VAT,

Develop a cash flow chart,

Build a financing chart.

Determination of long-term and short-term financing needs,

Use the financing chart to determine long-term resources

Use the cash flow chart to determine cash requirements and surpluses,

Check the value of the criteria of liquidity, solvency and profitability.

Finance cash requirements

Know the banking conditions: different rates (discount rate, overdraft rate), bank fees, bank outstandings.

Measure the impact of the value date system on the needs of the business.

Determine the type of financing and assess the Total Effective Rate (APR): overdraft, discount, assignment of receivables, factoring.

Place excess cash 

Know the different types of investments and their risks

Calculate their performance

Identification and selection of relevant performance indicators


Case study: EC operating budget


Design of the operating budget dashboard

Master the basics of Excel,

Quick formatting of a table,


The printing of paintings,

The role of the workbook (naming, organizing the sheets, linking the different pages),

Know how to use the essential functions for setting up dashboards,

Techniques and various tips,

Analysis of dashboards with forecasts

Communicating the results to the team / designing an action plan

Elaboration of different budgets: sales, purchases, overheads, VAT, personal expenses, cash …

Update and evolution of the dashboard, monitoring, control and management of gaps.

Consolidated accounts: the case of companies belonging to a group of companies

– The economic and financial significance of the consolidation

– Consolidation methods and their impact on the accounts

The unique database

– Read and decipher its content

– What relationship with other documents of the company?


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