Mastering Finance for Non Financial Managers

Euromoney Learning Solutions

How long?

  • 5 days
  • in person

Euromoney Learning Solutions

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Who should attend

  • The course is ideal for those persons seeking a proper grounding in the fundamentals of finance and accounting, including:
  • Non-financial managers from backgrounds such as design, production, engineering, sales, marketing, legal, IT and HR
  • Entrepreneurs and consultants
  • Financial services managers seeking the basics of finance and accounting
  • Other non-financial specialists who wish to know more about finance and accounting

About the course

Identify the first signs of non-performing loans and other credit exposures.

Finance for Non-Financial Managers & Executives is an intensive five-day course designed to provide non-financial executives and others with the knowledge and confidence required to comprehend and participate in financial decision-making and analysis.The course is in the style of a series of presentations interspersed with case study material. Delegates are required to carry out a fair amount of financial manipulation and are introduced to spreadsheets with a number of cases.

The case studies are designed to enable the delegate to take ownership of the knowledge offered by applying it to a case immediately after the relevant presentation. This is further reinforced by the completion of group cases towards the end of the course. The course is ideal for managers and others who are not financially trained, but who need to be familiar with the overall concepts and language used in corporate financial management, financial analysis, credit transactions and other corporate finance activities.

Whilst the course is not explicitly designed as a spreadsheet software training course delegates less familiar with spreadsheets should be able to develop their spreadsheet knowledge from the case study material offered in the course.

Delegates are encouraged to ask questions and develop their knowledge by enquiry. The presentation style is intensive, inclusive and informal. In the pre-course period delegates are expected to read from cover to cover a complete set of published statutory accounts.

The course covers:

  • Contents of accounts
  • The profit and loss account and balance sheet
  • Ratio analysis
  • Cash flow analysis
  • IFRS, IAS and the IASB
  • The time value of money
  • Project analysis
  • The cost of capital
  • Business valuation
  • Presenting financial information

Agenda

Day 1

  • Dealing with the fundamentals
  • Introduction to financial analysis

Differences in accounting terminology

  • Identifying the relationship between cash flow and profit
  • Development of an integrated cash flow model
  • Recognising it's all about cash
  • Understanding the relationships between the three main accounting statements.
  • Exercise: Accounting terminology

Fundamentals of accounting statements: The profit & loss account

Detailed review of the Profit and Loss Account

  • Profit types - Trading, asset and business
  • Inventory, Depreciation, Capitalised interest
  • Minority interests and consolidation
  • Exceptional and material items

Fundamentals of accounting statements the balance sheet

Detailed review of the Balance Sheet

  • Understanding the fixed assets note,
  • Accounting goodwill – What is it?
  • Liabilities, pension fund accounting
  • Debt and other liabilities like debt
  • Deferred tax, contingent liabilities

Accounting abuses and update

Abuses of Fair Accounting

  • Basic abuses relevant to all businesses
  • More complex abuses relevant to larger groups
  • Case study: Delegates examine and evaluate the P&L of this major company

Day 2

Cash flow analysis and accounting issues

Understanding cash flows

  • Detailed review of the Cash Flow Statement
  • Analysing and interpreting cash flows
  • Summarising cash flows for analysis
  • Case study: Summarising cash flows
  • Delegates summarise cash flows for analysis purposes

Cash flow analysis

  • The four phases in the life of a business
  • Case study: Examining patterns of cash flows. Delegates match cash flows to sectors
  • Dealing with the consequences of growth and no-growth.
  • Case study: Growth & no-growth cash flows
  • Delegates restate cash flows to improve their understanding of performances
  • Financial analysis techniques – Ratio analysis
  • Objectives of ratio analysis
  • Developing ratio analysis skills
  • Different types of ratios
  • How much information is there in ratios?
  • Ratio rules – Avoiding errors of principle
  • Case study: Use of ratios
  • Delegates match ratios to different types of businesses.
  • Delegates consider what ratios do and do not tell us.

  • Global accounting in the new century

  • Overview of the International Accounting Standards Board

  • The implications of the IAS Initiative

  • Review of new standards produced in the last five years

Day 3

Financial mathematics and project analysis

The time value of money

  • Present & future values
  • Defining the discount factor
  • Exercises: Discounting calculations
  • Net present value (NPV) – Developing the concept
  • NPV's and varying future cash flows
  • Perpetuities and annuities
  • Exercises: Annuities and perpetuities

Project analysis

  • Introduction to project analysis
  • Developing a forecast of the project cash flows
  • Identifying the key risk areas

Evaluating capital investment projects

  • Discounted cash flow techniques
  • Calculating the internal rate of return
  • Case study: Speculative housing project
  • Delegates perform investment appraisals to decide whether to proceed with a capital investment
  • Case study: Project analysis
  • Delegates create a summary of the project cash flows & Identify the principal project risks

Case study: Eight Projects Delegates evaluate a number of projects and decide which projects should be pursued and which rejected.

  • Management information
  • Budgeting
  • Monthly reporting
  • Costing
  • Forecasting
  • Planning
  • Credit analysis - The basic concepts
  • Introducing credit analysis frameworks
  • Financial analysis – Review of the issues
  • Non-financial analysis – Developing a framework

Day 4

Cost of capital and valuation

The cost of capital and the underlying corporate finance theory

  • The cost of debt
  • The capital asset pricing model
  • The tax subsidy effect
  • The cost of equity
  • Portfolio theory
  • The Equity Risk premium
  • Completing the WACC
  • Mogdiliani Miller and the theory of leverage
  • Exercise: Cost of capital calculation

Funding structures

  • The relationship between business risk & financial risk
  • The four phases of the corporate life-cycle
  • Identifying appropriate funding structures
  • Recognising the drivers of funding strategies

Cash flow valuation

  • Preparing the forecast
  • Identifying the free cash flows
  • Competing the valuation

Case study: Beatific

Other valuation methods

  • Earnings based valuation
  • Dividend discounting
  • Asset valuation

Case study: Valuation methods - Magnificence

The need for growth A review of the consequences of our understanding of the WACC and valuation for those responsible for managing listed business

Day 5

Case studies and presentation skills Case study: Business analysis Delegates analyse a business using the methods learned in the course

Case study: Business valuation Delegates value a business using the methods learned in the course.

Case study: Financial presentation in small groups Delegates prepare and give a presentation of the salient features gained from the analysis case in session one using spreadsheets and graphics.

Experts

Timothy Jury

The course instructor is a chartered accountant, who qualified with KPMG. He has held main board financial and general management directorships in both quoted and private companies. He has considerable experience of management in turnaround situations and has completed a number of acquisitions, d...

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Mastering Finance for Non Financial Managers at Euromoney Learning Solutions

From  5245 GBP$6,819

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