Finance For Non-Finance

AED2,500.00

This course covers important concepts of Finance and helps participants to understand how these concepts are useful for decision making. This two days interactive workshop will give you an understanding of key financial statements and how to apply financial techniques.

Category:

Description

Learning Outcome

By the end of the session, participants will be able to:
• Define the key financial statements: balance sheet, income statement, cash flow as well as key financial terms such as earnings, margins and leverage used in organizations.
• Interpret the financial health and condition of a company, division or responsibility centres and use financial information for management and evaluation.
• Distinguish between accounting and finance and explain the finance role in running business.
• Distinguish between public finance and corporate finance.
• Prepare a company’s operating budget and relate it to the organization’s strategic objectives.
• Apply capital budgeting techniques and cost-volume-profit analysis to enhance decision making.

Course Content

The key financial statements
• Understanding the accounting cycle
• Income statement: tool for performance management
• Accrual basis versus cash basis
• Balance sheet: tool for financial position
• Statement of cash flows
• Wrapping up: the cycle of financial statements
• External and internal auditor’s responsibilities

Analysis of Financial Statements
• Why are ratios useful
• Trend analysis
• 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
• Balancing profitability and liquidity
• Working capital management strategies for current liabilities
• Trade-off between profitability and certainty

Concept of Financial Management
• Accounting versus finance: rules and responsibilities
• Public finance versus corporate finance
• Three pillars of finance: Financial decisions, Investing decisions and Operating decisions.

Breakeven Analysis and Decision Making
• Defining fixed costs
• Defining variable costs
• Contribution margin formula
• Computing breakeven point
• Sensitivity analysis: changing assumption

Operating Budget Process and Techniques
• What is an operating budget
• Steps to budget development
• Master budget components
• Sales forecasting
• Approaches to budgeting

Capital Budgeting: the investing decisions
• Examples of exercises involving capital budgeting exercise
• Time value of money: a prerequisite for investing decisions
• Required rate of return for investments
• Examples of cash outflows for capital projects
• Examples of cash inflows for projects
• Net present value calculation
• Internal rate of return