Why Attend
Most strategic and operational business decisions rely on a fundamental knowledge of financial management including the ability to speak and understand the language of finance. While this knowledge is an essential skill for leaders and managers throughout the organization, it is also a prerequisite for both finance professionals who need to make day to day decisions as well as accounting professionals who wish to advance their careers. Those without a clear understanding of financial statements analysis and management are unable to communicate professionally with finance managers and business leaders. This course consists of modules that clarify financial terminology and concepts giving you the required tools to communicate fluently with top executives and articulate business investment and project proposals to decision makers.
Course Methodology
The course uses a mix of interactive techniques such as brief presentations by the consultant, group exercises, case studies and the use of Excel to apply knowledge acquired throughout the course followed by participants’ presentations of the results.
Course Objectives
By the end of the course, participants will be able to:
- Apply financial analysis techniques to generate conclusions and recommendations regarding business performance
- Utilize their macro finance understanding from a strategic and operational perspective
- Design dynamic strategic financial planning models
- Demonstrate an understanding of mergers, acquisitions, takeovers, and corporate control
- Compare how equities and fixed income securities are priced
- Develop a practical understanding of corporate finance, cost of capital, and capital budgeting
Target Audience
Finance professionals, finance managers, corporate controllers, financial controllers, treasury professionals, chief accountants, accounting managers, senior accountants, banking professionals, and corporate business professionals.
Target Competencies
- Understanding financial statements
- Financial analysis
- Financial management
- Financial modeling
- Mergers and Acquisitions (M&As)
- Investment valuation
- Equity valuation
- Fixed income valuation
- Capital budgeting
Course Outline
- The scope of financial analysis and management
- Introduction to the three pillars of financial management
- Operating, investing, financing decisions
- An inside look at the key financial statements
- The building blocks of financial statements analysis
- Vertical analysis and common size financial statements
- Horizontal and trend analysis
- Liquidity analysis
- Solvency analysis: debt and equity
- Efficiency and working capital management
- Balances of cash
- Balances of accounts receivable
- Balances of inventory
- Balances of trade payables
- Using short term bank facilities
- The cash conversion cycle
- Profitability analysis: margins and returns
- Strategic financial planning and forecasting
- Overview of the financial planning process
- Revenue forecasting: bottom up versus top down
- Forecasting cost of goods sold
- Forecasting fixed and variable costs
- Forecasting balance sheet accounts
- Using days sales outstanding
- Using days of inventory on hand
- Using days of payables
- Fixed assets forecasting
- Retained earnings and dividend pay-out policy
- Building 12 months forecast for a seasonal business
- Modeling ‘what-if’ analysis
- Mergers, acquisitions, and corporate control
- Methods of acquisitions
- Types of Mergers and Acquisitions (M&As)
- Motives for mergers and acquisitions
- 5 phases to the M&A process
- The process of due diligence
- Reasons behind failed mergers
- Financing decision: the right mix of debt and equity
- Valuation fundamentals of financial instruments
- How to price a bond before issuance
- How to price a stock before offering
- Weighted average cost of capital
- Impact of debt-to-equity ratio on cost of funds
- Deciding on the mix of debt and equity
- Optimal financing structure
- Valuation fundamentals of financial instruments
- Capital budgeting and investment decisions
- Practical applications of the time value of money using Excel
- Future value calculations
- Present value and NPV calculations
- Internal rate of return
- Verifying loan installments based on effective interest method
- The capital budgeting process
- Forecasting incremental cash flows
- Deciding on appropriate discount rate
- Identify working capital commitment
- Net present value: key decision making criteria
- Internal rate of return for decision making
- Discounted payback period
- Profitability index
- Practical applications of the time value of money using Excel
- Introduction to the three pillars of financial management
