Financial Management for Non-Financial Managers

Financial Management for Non-Financial Managers

Methodology

This course utilizes a combination of interactive training techniques, such as brief presentations, case studies, and group exercises, to apply the acquired knowledge.

Course Objectives

By the end of the course, participants will be able to:

• Identify the four key financial statements: the balance sheet, income statement, cash flow statement, and statement of changes in equity, along with key financial terms such as profit, margin, and leverage.
• Analyze the financial position of organizations and departments and use financial information for management and evaluation.
• Prepare the operating budget and link it to the strategic goals of the organization.
• Apply capital budgeting techniques to evaluate long-term decisions related to projects and capital expenditures.
• Utilize cost behavior concepts in calculating the breakeven point to enhance short-term decision-making.

Target Audience

Managers, supervisors, and employees from any function, including finance professionals, who need to improve their understanding and use of financial information.

Training Program Content

• Key Financial Statements
• Understanding the Accounting Cycle
• The Five Main Accounts for Financial Data
• Income Statement: Measuring Company Performance
• Accrual Basis vs. Cash Basis
• Balance Sheet: Understanding the Current Position
• The Balanced Position
• Statement of Changes in Equity
• Cash Flow Statement: Cash Is King!
• Conclusion: Financial Statements Course
• Responsibilities of Internal and External Auditors
• Financial Data Analysis
• Why Ratios Are Useful?
• Trend Analysis and Horizontal Analysis
• Vertical Analysis: Common-Size Financial Statements
• Key Components Analysis and Reading Numbers
• Liquidity Ratios: Short-Term Debt Paying Ability
• Solvency Ratios: Long-Term Debt Paying Ability
• Activity Ratios: Efficient Asset Management
• Profitability Ratios
• Limitations in Financial Ratio Analysis
• Working Capital
• Definition and Management of Working Capital
• Different Strategies in Working Capital Management
• Budgeting Methods and Process
• What Is an Operating Budget?
• Steps in Developing an Operating Budget
• Key Budget Components
• Sales Forecasting
• Budgeting Methods
• Incremental Budgeting
• Zero-Based Budgeting
• Budget Monitoring and Correction
• Capital Budgeting: Investment Decisions
• Examples including Capital Budgeting Exercises
• Time Value of Money: Fundamental Requirement for Investment Decisions
• Required Rate of Return for Investment
• Examples of Cash Flows Used in Capital Projects
• Examples of Cash Flows Generated from Capital Projects
• Calculation of Net Present Value
• Internal Rate of Return
• Cost Behavior Concepts and Break-Even Analysis
• Definition of Fixed Costs
• Definition of Variable Costs
• Contribution Margin
• Calculation of Break-Even Point
• Sensitivity Analysis: Changing Assumptions