2 Days Workshop
Introduction
The primary goal of this workshop is to help professionals who have little or no knowledge in finance and accounting in developing sound financial knowledge to read and understand financial reports. Real-current problematic finance & business cases will be analyzed and scenario solutions will be discussed within the workshop.
Course Objectives
By the end of this course you will be able to:
Understand the importance and relevance of financial principles such as Expected Return and Return on Investment (amongst others) to investment projects
Analyse, understand and manage their own Income and Expenditure accounts more effectively
Understand the importance of Cash flow and Cash management
Use internal Management Accounts to monitor and improve performance against Budget
Apply financial risk modelling skills to your banking environment
Recognise areas of concern and recommend ideas for improving financial performance and productivity
Contribute more effectively to Budgeting negotiations
Feel much more confident about their understanding of financial terms and jargon
Methodology
Case Study & Group Discussion.
Who Should Attend
Investment bankers, Business Managers, Marketing Managers, Supervisors, Executives and Managers and all professionals who are interested in Finance for non-Finance (Investment Banking sector)
Special Feature:
NOTE: Please bring laptop along
Programmed Outline
Day 1
Module 1: Balance Sheet
How to read a balance sheet
Understand key concepts of Assets, Liabilities, Equity
Current vs non-current distinction
Tangible vs intangible distinction
Assessment of company financial strength and risk
Strengthening financial structure
Working capital management
Module 2: Profit & Loss Statement
How to read Profit & Loss Statement
Use Profit and Loss Statement to evaluate performance
Concept of margins and profit analysis
Relationship between P&L statement to balance sheet
Profit & Loss accounting model
Why profit is different from cash
Module 3: Cash Flow Statement
Lifeblood of business – Cash Flow Statement
Relationship between cash flow statement and balance sheet
3 streams of cash flow, Operating ,Investing &Financing
How to determine financial health from cash flow pattern
Determining if the company is using internal cash flow to finance growth or relying on external financing
Module 4: Financial Ratios Analysis
Learn how to size up a company quickly by reading their financial ratios
Liquidity
Solvency
Efficiency
Profitability
Asset Management
Assessing drivers of company profitability and growth:-
Operations and investment strategies: operating and investment management
Module 5: Financial Risk Modelling Skills (case study)
Potential risk
Quantify Collection impact
Review Pre-mitigation (Collection impact)
Mitigating Collection strategies & controls
Post Mitigation (collection impact)
Quantify Financial Collection improvement
Quantify possible Cost increase in collection strategies
Quantify Cost/benefit analysis in post collection mitigation strategies
Decision Summary recommended
Calculate ROI
Ranking (priorities collection efforts)
Day 2
Module 6: Investment Appraisal (Case Study)
Calculate return on investment (ROI),
Calculate net present value (NPV), internal rate of return (IRR), and payback period
Recommendation to proceed or reject based on financial & non-financial considerations
Module 7: Credit Evaluation, Monitoring & Predicting Business Failure Using Z Score
Importance of Credit Evaluation & Monitoring
Criteria for Approval or Rejection
Setting the Credit Limit
Monitoring Customer Account
Group exercises
‘Altman Z’ Score-Insolvency Predictor (case study)
Module 8: Profit Planning and Activity-Based Budgeting (Exercise)
Operational Budget
Financial Budget
Module 9: Summary & Application