Nanyang Technological University Center for Continuing Education

Practical Business Finance for Non-Financial Executives

Available dates

Mar 26—27, 2020
2 days
Singapore
SGD 1284 ≈USD 977
SGD 642 per day
Jun 25—26, 2020
2 days
Singapore
SGD 1284 ≈USD 977
SGD 642 per day

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About the course

A basic knowledge of business and corporate finance is essential for any non-financial management and professionals to function effectively in his/her current capacity. The ability to understand financial jargons is not only useful as a life skill, but a much needed requirement for non-financial professionals occupying or about to assume a greater leadership role in the organization.

In this program, participants will learn how to determine the financial health of a business. Participants will appreciate the need for allocation of scarce financial resources and tighter financial management so as to obtain the best financial value-add for the company. Participants will learn not only the thoughts that go into building up a financial case for a new capital project, but also learn how to use the various common financial tools to justify for a new capital project. Finally, participants will be introduced to the types of costs and their behavior, and how these could be used to determine the breakeven of a business, and forecast profitability under various simulated sales volumes.

Objectives

  • Tailored towards equipping Non-Financial Management Staff / Professionals with Practical Business & Corporate Finance Skills to Effectively Manage day-to-day and leadership work
  • Understand the Cost of Doing Business
  • Learn the Various Drivers behind Profitability and Cash Flows
  • Understand How to Build a Financial Case for a New Project and How to Justify for one
  • Understand the relationship between, Cost, Volume and Profit, and use the concept to generate different financial outcomes under various simulated conditions

-Participants are advised to bring along a calculator for this course.

Outline

Determining Business Profitability

  • Reading Income Statement (Profit & Loss Statement)
  • Building an Income Statement
  • Understanding Profit Terms
    • EBIT / Operating Profit
    • EBITDAR
    • Net Income
  • Concept of Economic Value Add (EVA)
  • Determining Returns
    • Gross Profit Margin
    • Operating Profit Margin
    • Net Profit Margin
    • Return on Investment (ROI)
    • Return on Equity (ROE)

Determining Financial Health of a Business

  • What Balance Sheet Tells You
  • How To Determine Liquidity
  • How To Determine Solvency
  • How To Determine if Assets Are Managed Efficiently

Cash Is King!

  • Why is Cash Generation Important?
  • Why is Profitability Not Equal To Cash?
  • Where is Cash Generated? How to Optimize It?
  • Where is Cash Used?

Cost of Capital

  • The Components of Capital
  • Capital is Not Free!
  • Determining Cost of Capital
  • Why is understanding Cost of Capital important? *Its Link to Required Rate of Return

Capital Budgeting & Justifying for a New Project

  • Capital Expenditure versus Operating Expenditure
  • Determining Capital Budget Needs
  • Importance of the Concept of Cash Flows & Time Value of Money
  • Building a Financial Case for a New Project
  • Financial Evaluation of Capital Projects
    • Payback Method
    • Net Present Value Method
    • Internal rate of Return

Principles of Costs & Their Applications

  • Understanding Fixed & Variable Costs
  • Determining Contribution Margin
  • Determining Breakeven Point
  • Using Cost-Volume-Profit Analysis to make Sound Business Decisions

Methodology

  • 70% - Class Instructions / Illustrations / Discussions
  • 30% - Simple Exercises / Case Study

Who should attend

Engineers or Professionals, Managers and Executives (PMEs) with no or little prior formal introduction to the world of business and corporate finance.

Trust the experts

Dave Yeo

Dave Yeo is a Fellow of CPA Australia, and brings with him more than 18 years of industrial experiences in various public-listed, world-class business organizations such as ExxonMobil, Honeywell and Textron Inc. He has held senior management positions in Accounting, Finance and Internal Controls ...

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