Introduction

Most strategic and operational business decisions rely on fundamental knowledge of financial management including the ability to speak and understand the language of finance. While this knowledge is an essential skill for leaders and managers throughout the organization, it is also a prerequisite for both finance professionals who need to make day-to-day decisions as well as accounting professionals who wish to advance their careers. Those without a clear understanding of financial statements analysis and management are unable to communicate professionally with finance managers and business leaders. This course consists of modules that clarify financial terminology and concepts giving you the required tools to communicate fluently with top executives and articulate business investment and project proposals to decision-makers.

Objectives

By the end of the course, participants will be able to:

• Apply financial analysis techniques to generate conclusions and recommendations regarding business performance

• Utilize their macro-finance understanding from a strategic and operational perspective

• Design dynamic strategic financial planning models

• Demonstrate an understanding of mergers, acquisitions, takeovers, and corporate control

• Compare how equities and fixed income securities are priced

• Develop a practical understanding of corporate finance, cost of capital, and capital budgeting 

Target Audience

• Finance professionals
• Finance managers
• Corporate controllers
• Financial controllers
• Treasury professionals
• Chief accountants
• Accounting managers
• Senior accountants
• Banking professionals
• Corporate business professionals

Outlines

Day 1: Financial Analysis and Financial Management Foundations

• The scope of financial analysis and management
• Introduction to the three pillars of financial management (operating, investing, financing decisions)
• Overview of key financial statements
• Building blocks of financial statement analysis
• Vertical analysis and common-size financial statements
• Horizontal and trend analysis
• Liquidity analysis
• Solvency analysis (debt and equity)
• Efficiency and working capital management
• Cash balances, receivables, inventory, and trade payables
• Short-term bank facilities
• Cash conversion cycle
• Profitability analysis (margins and returns)

Day 2: Strategic Financial Planning and Forecasting

• Overview of the financial planning process
• Revenue forecasting (bottom-up vs top-down)
• Forecasting cost of goods sold
• Forecasting fixed and variable costs
• Forecasting balance sheet accounts
• Days sales outstanding (DSO)
• Days inventory on hand (DIO)
• Days payables outstanding (DPO)
• Fixed assets forecasting
• Retained earnings and dividend payout policy
• Building a 12-month forecast for seasonal businesses
• What-if analysis and scenario modeling

Day 3: Mergers, Acquisitions, and Corporate Control

• Methods of acquisitions
• Types of mergers and acquisitions (M&A)
• Motives for mergers and acquisitions
• The 5 phases of the M&A process
• Due diligence process
• Reasons behind failed mergers

Day 4: Financing Decisions and Capital Structure

• Valuation fundamentals of financial instruments
• Bond pricing before issuance
• Stock pricing before offering
• Weighted Average Cost of Capital (WACC)
• Impact of debt-to-equity ratio on cost of funds
• Determining optimal debt and equity mix
• Optimal financing structure

Day 5: Capital Budgeting and Investment Decisions

• Time value of money applications using Excel
• Future value and present value calculations
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Loan installment verification using effective interest method
• Capital budgeting process
• Forecasting incremental cash flows
• Selecting appropriate discount rates
• Working capital requirements
• Investment decision criteria (NPV, IRR, profitability index)
• Discounted payback period
• Profitability index