Financial Statement Analysis and Basic Finance – 2 Days

Summary

No-one in business will succeed if they are not financially literate – and no business will succeed without financially-literate people. This is the ideal programme for managers and other professionals or specialist who don’t have a financial qualification or background but who nonetheless need a greater/better understanding of the financial management in business decision-making and to succeed in their career. This course, which has a focus on Financial Statement Analysis, builds and create confidence in participants to discuss and understand business – related accounting and financial matters in no time.

 

Course Objectives and Outcomes

  • Understand and speak the basic finance language 
  • Gain greater confidence with basic finance concepts 
  • Apply financial concepts and methods in business decision making 
  • Translate/relate your department performance into financial terms 
  • Make smarter and informed decisions that delivers higher profitability 
  • Enhance your value to your organization and expand your professional expertise 
  • Better communicate with confidence your contribution to the bottom line

 

At the end of the course, participants will: 

  • Be familiar with the concept of basic accounts 
  • Understand how they can be used to manage performance 
  • Appreciate the contribution that financial information makes to business decisions 
  • Be more adept in decision making 
  • Be encouraged to want to explore your own organisation’s finances in more depth

 

Who should attend?

Business Managers, Department Heads & Managers, Profit Centre Managers, Sales & Marketing Managers, Any Manager or Executive with a non-financial background

 

Course Overview and Content

  • Concept of Value Creation, 
  • Understanding Financial Statements, 
  • Analyzing Financial Ratios, 
  • Working Capital and Operating Cycles, 
  • Understanding and Controlling Costs, 
  • Capital Investment Appraisal
  • Financial Instruments and Risk Management
  • Short-Term and Long-Term Financial Planning
  • Evaluating Financial Performance
  • Business Valuation & Corporate Restructuring
  • Understanding Management Accounting
  • Financial Forecasting & Managing Growth

 

Course Content

The Need for Financial Intelligence

  • Understanding the foundation
  • Understanding the art
  • Understanding analysis
  • Understanding the big picture

 

Finance within the Organization

  • The makeup of the finance function

Managing Money

  • Where does money come from?
  • Where does it go?

 

Accounting for Business

The three key questions

  • How are we doing?
  • How did we do?
  • What are we going to do?
  • Financial Accounting  and Management Accounting – the differences

 

Annual Report

  • The key elements of published reports and accounts.

 

Balance Sheet

Classifications

  • Types of assets
  • Types of Liabilities
  • Working capital

 

Profit and Loss

Classifications

  • Revenue
  • Types of Costs
  • Levels of Profit
  • Layout

 

Revenue and Costs

  • Relationship between revenue and costs
  • Marginal Costs and Marginal Revenue
  • Opportunity costs
  • Breakeven analysis
  • Law of diminishing returns
  • Profit maximization

 

Ratio Analysis

  • Types of ratios
  • Liquidity
  • Management
  • Leverage
  • Profitability
  • Investment

 

Budgeting

  • Definition
  • Reasons for budgeting
  • Variance analysis
  • Evaluation
  • Types of budgets
  • Human side of budgeting
  • Tips for successful budgeting

 

The Cost of Capital and Capital Investment Appraisal

  • Defining the cost of capital
  • Weighted Average Cost of Capital (WACC)
  • Capital Asset Pricing Model (CAPM)
  • The capital investment process
  • Capital Investment appraisal
  • Payback period
  • Accounting Rate of Return
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Capital rationing

 

Strategy and Financing the Business

  • Financing the business, including short-term versus long term, and debt versus equity
  • Understanding the drivers in your business
  • Building your management dashboard
  • The effect of competitive strategy and how to gain competitive advantage
  • The balanced scorecard and critical success factors
  • Avoiding paralysis by analysis
  • Introduction to economic value added (EVA)