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Course Overview

Financial knowledge nowadays are critical set-of-skills required by all professionals in all divisions and industries. Finance is involved with every decision-making process within any organization, government or private. These decisions involve understanding how to operate a business, invest in a business, and/or decide on the appropriate financing mechanisms. This course will equip you with sound knowledge, tools, and techniques you can use on a daily-basis. You will understand how finance affect your business, perform analysis and devise financial key performance indicators, perform analysis, and work with capital projects.

Course Methdology

This course demonstrates core principles in fundamental financial analysis and utilizes Excel in performing modern and creative techniques of financial analysis. Real-life case studies, individual workshops, and team presentations by participants.

Course Objectives

By completely attending this course, participants will be able to:
  • Compare the roles of accounting and finance and explain finance role in running businesses.
  • Read and understand the four key financial statements: balance sheet, income statement, cash flow and changes in owner equity.
  • Interpret the financial viability of a company and use financial information for management, analysis, and evaluation.
  • Design a financial key performance indicator scorecard for your business.
  • Perform capital budgeting techniques and cost-volume-profit analysis to enhance investment and operating decision making.

Target Audience

Managers, supervisors and staff from any function including finance who need to improve understanding and usage of financial information.

Target Competencies

  • Financial Management
  • Operating Decisions
  • Investment Decisions
  • Financing Decisions
  • Financial Statements
  • Financial Analysis
  • Assessment of Capital Projects
NOTE:
This course requires the use of laptops with Excel 2010/2013/2016 installed. On any courses conducted in the UAE, VIF will provide laptops to all delegates for the duration of the course. For courses outside the UAE, delegates must bring their own laptops with Windows-based Excel 2010+ fully installed.

Course Outline

Why and Why Finance?

  • Accounting versus finance: rules and responsibilities
  • Three pillars of finance
  • Financing decisions
  • Investing decisions
  • Operating decisions

The Key Financial Statements

  • Understanding the accounting cycle
  • The five main accounts in financial statements
  • Income statement
  • Accrual basis versus cash basis
  • Balance sheet
  • The balanced status
  • Statement of owners’ equity
  • Statement of cash flows
  • Wrapping-up: the cycle of financial statements
  • External and internal auditors’ responsibilities

Analysis of Financial Statements

  • Why are ratios useful?
  • Horizontal and trend analysis
  • Vertical analysis: common size statements
  • Common size financial statements
  • Building blocks analysis and reading through the numbers:
  • Liquidity ratios: ability to settle short-term dues
  • Solvency ratios: ability to settle long-term dues
  • Activity ratios: ability to manage assets efficiently
  • Profitability ratios
  • Limitations of financial ratio analysis

Working Capital Management

  • Definition of working capital and working capital management
  • Working capital management strategies for current assets
  • A/R and Credit Policy
  • Credit Agreements and Analysis
  • Inventory Management
  • Cash management and Float
  • Balancing profitability and liquidity
  • Working capital management strategies for current liabilities
  • Trade-off between profitability and liquidity

Breakeven Analysis and Decision Making

  • Cost-Volume Profit Analysis
  • Breakeven Price
  • Breakeven Point - BEP
  • Fixed versus Variable Cost
  • Variable Cost Ratio
  • Break-Even Units
  • Using Excel’s What-If Analysis

Capital Budgeting and the Investment Decision

  • What is Capital Budgeting?
  • Time Value of Money
  • Discounted Cash Flow - DCF Analysis
  • Payback Analysis and Payback Period
  • Net Present Value – NPV
  • Initial Cash Flow
  • Profitability Index
  • Discounted Payback Period
  • Accounting Rate of Return - ARR
Location & Dates
Call us at +971 4 430 8394