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Description

Balance Sheet and Income Statement: Reading, Analysing and Interpreting Financial Position

Build the financial reading reflexes needed to engage confidently with finance teams

  • 2 days — 14 h
  • In-person or virtual
  • Foundation
  • Up to 6 participants

Financial statements circulate within the organisation every year without ever being properly read. A manager sees a positive bottom line and concludes that all is well, while cash tightens and customer payment terms stretch. Conversations with the finance function stall for lack of a shared vocabulary, and investment or hiring decisions are taken without any financial reference point.

These two days are designed for non-financial professionals. Participants learn to locate each line of the balance sheet and income statement, calculate intermediate performance indicators and key balances, interpret the main ratios, and then deliver a reasoned diagnosis of a company's financial position.

Learning objectives

  • Locate the items of the balance sheet and income statement and understand their logic
  • Calculate and interpret intermediate performance indicators
  • Analyse the key balance sheet equilibria and working capital requirement
  • Interpret profitability, structure and activity ratios
  • Link operational decisions to their effects on the accounts
  • Formulate a reasoned financial diagnosis of a company

What makes this programme different

The accounts of a single company analysed across three consecutive financial years
An exercise translating operational decisions into quantified effects on the accounts
A full diagnosis presented to the group and openly challenged

Programme

1How financial statements are built

Understanding where the figures come from

  • Double-entry logic and how accounts are formed
  • Structure of the balance sheet: assets and liabilities
  • Structure of the income statement and the nature of expenses
  • Role of the notes to the accounts and the useful disclosures

2Analysing activity and results

Knowing where performance comes from

  • Intermediate performance indicators and cascade reading
  • Gross trading margin and value added
  • Operating profit before depreciation and self-financing capacity
  • Fixed costs, variable costs and break-even point
  • Exceptional items and useful adjustments

3Balance sheet equilibria and cash

Understanding why a profit is not cash

  • Working capital and working capital requirement
  • Operating cycle and customer, supplier and inventory days
  • Net cash position and financing of the cycle
  • Debt structure and repayment capacity

4Diagnosis and management dialogue

Forming a reasoned judgement

  • Profitability, structure and activity ratios
  • Comparison over time and against the sector
  • Warning signals on financial soundness
  • Translating operational decisions into accounting effects

Who is it for

Operational managers, sales professionals, engineers, department heads and business founders with no financial background.

Prerequisites

No prerequisites

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.