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