Compare courses
Register
Nanyang Technological University Center for Continuing Education

Practical Business Finance for Non-Financial Executives

Add course to comparison

Next dates

Apr 25—26
2 days
Singapore, Singapore
SGD 631 ≈USD 465
SGD 315 per day

Categories

Leadership

Description

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.

Show more