Corporate Finance: Financial Analysis and Decision-Making
What you'll learn
- Apply financial ratios (liquidity, profitability, efficiency) to assess the financial health of companies accurately.
- Analyze financial statements using current ratio, quick ratio, and cash ratio to evaluate the company's liquidity position.
- Evaluate solvency by calculating debt ratio, debt-to-equity ratio, and interest coverage ratio for a comprehensive assessment.
- Assess operational efficiency using inventory turnover, receivables turnover, and asset turnover ratios to identify areas of improvement.
- Utilize forecasting and budgeting techniques to predict sales and cash flow accurately for effective financial planning.
- Perform break-even analysis and analyze leverage to determine the profitability and risk of the company.
- Evaluate financing decisions by considering optimal capital structure and its impact on the cost of capital.
- Manage current assets, including cash, inventory, and receivables, to optimize operational efficiency.
- Apply time value of money principles to calculate present and future values of cash flows for investment analysis.
- Value bonds, common stock, and preferred stock using appropriate valuation methods such as discounted cash flow and comparable analysis.
- Calculate the cost of debt, cost of equity, and weighted average cost of capital (WACC) to assess the investment's financial feasibility.
- Apply capital budgeting techniques (NPV, IRR, payback period) to evaluate investment projects' profitability and viability.
- Use risk tools such as standard deviation, beta, and diversification to assess and manage investment risk.
- Understand the role of investment banking in initial public offerings (IPOs), debt offerings, and mergers and acquisitions (M&A).
- Analyze equity financing options and evaluate their impact on the company's financial structure.
- Evaluate the impact of dividend policy on shareholder wealth and the company's financial stability.
- Examine convertible bonds and warrants as financial instruments for corporate financing strategies.
- Understand the process of corporate acquisitions and post-acquisition integration for effective business expansion
- Evaluate the impact of foreign currency on financial statements in international operations and assess exchange rate risk.
- Apply financial analysis techniques to assess profitability and financial performance in foreign markets.
- Familiarity with mathematics and basic algebra.
- Knowledge of Excel or spreadsheet software for financial calculations.
Welcome to our comprehensive online course on corporate finance and financial statement analysis. In this course, we will provide an in-depth exploration of the key concepts and tools used in corporate finance.
We will start with an introduction to financial statements, covering the balance sheet, income statement, and cash flow statement. You will learn how to analyze these statements to assess a company's financial performance and make informed decisions.
Financial ratios will be a central focus of the course. We will delve into liquidity ratios, such as the current ratio and quick ratio, to evaluate a company's short-term solvency. Profitability ratios, including return on equity and gross margin, will help you assess a company's profitability. Additionally, we will explore leverage ratios, such as debt-to-equity ratio and interest coverage ratio, to gauge a company's financial risk.
Forecasting and budgeting are crucial skills in corporate finance. You will learn techniques to create financial forecasts and budgets, enabling you to anticipate future financial outcomes and plan for growth. We will discuss methods such as trend analysis, regression analysis, and the use of financial models to make reliable projections.
Leverage and break-even analysis will be covered extensively. You will understand the impact of debt and fixed costs on a company's profitability and risk. We will calculate and interpret various leverage ratios, such as the debt ratio and equity multiplier, and explore break-even analysis to determine the level of sales needed to cover costs.
Financing decisions are fundamental to corporate finance, and we will explore different sources of financing available to companies. You will learn about debt financing, equity financing, and the trade-offs between them. We will discuss the cost of capital and capital structure optimization to help you make optimal financing decisions.
Effective management of current assets is vital for maintaining liquidity and operational efficiency. Topics covered include working capital management, cash flow analysis, inventory management, and accounts receivable management. You will gain practical insights into techniques for optimizing current assets to support the company's financial health.
Short-term financing options, such as bank loans, lines of credit, and trade credit, will be explored in detail. You will understand the benefits and risks associated with different short-term borrowing options and how to assess their suitability for a company's financing needs.
The time value of money is a fundamental concept in finance, and we will cover it extensively. You will learn about present value, future value, annuities, and the calculation of interest rates. These skills will enable you to evaluate investment opportunities, project valuation, and capital budgeting decisions.
Valuation methods for bonds, common stock, and preferred stock will be thoroughly explained. We will discuss discounted cash flow analysis, dividend discount models, and price-earnings ratios to assess the intrinsic value of these securities. You will gain insights into the factors that influence the valuation of financial instruments.
Capital budgeting techniques, including net present value (NPV), internal rate of return (IRR), and payback period analysis, will be covered in detail. You will learn how to evaluate investment projects and make informed decisions based on their expected cash flows and profitability.
Managing investment risk is crucial, and we will explore techniques for measuring and managing risk. You will gain a deep understanding of portfolio theory, diversification strategies, and risk-adjusted return metrics to optimize your investment decisions.
The course will also delve into investment banking and the role of underwriters in capital markets. You will learn about the process of issuing securities, initial public offerings (IPOs), and the various functions of investment banks in facilitating capital raising activities.
Long-term debt financing, including bonds and loans, will be discussed extensively. We will cover debt valuation, debt covenants, and the impact of long-term debt on a company's capital structure. You will gain insights into the factors to consider when evaluating and structuring long-term debt financing.
Additionally, we will explore financing through common stock and preferred stock, dividend policy, convertible bonds, and warrants. You will understand the complexities associated with these financing instruments and their implications for a company's capital structure and shareholder value.
Finally, we will examine the dynamics of corporate acquisitions and the challenges posed by foreign currency. You will gain insights into the complexities of international finance, including exchange rate risk and the management of foreign currency transactions.
Throughout the course, you will have access to comprehensive case studies, practical exercises, and downloadable resources, including Excel files and reference materials, to reinforce your learning and provide hands-on experience in applying the concepts.
Enroll now in this comprehensive corporate finance course to enhance your financial analysis skills, decision-making abilities, and strategic insights, and gain a competitive edge in the dynamic world of corporate finance.
Who this course is for:
- Accounting professionals seeking to enhance their financial analysis skills.
- Business owners and managers who want to make informed decisions based on financial statements.
- Finance professionals and analysts looking to deepen their understanding of corporate finance.
- Students pursuing a degree in accounting, finance, or business administration.
- Individuals interested in learning how to analyze financial statements and make informed investment decisions.
Through working with students from many different schools, Mr. Steele has learned best practices for helping people understand accounting fast. Learning new skills and finding the best way to share knowledge with people who can benefit from it is a passion of his.
Mr. Steele has experience working as a practicing Certified Public Accountant (CPA), an accounting and business instructor, and curriculum developer. He has enjoyed putting together quality tools to improve learning and has been teaching, making instructional resources, and building curriculum since 2009. He has been a practicing CPA since 2005. Mr. Steele is a practicing CPA, has a Certified Post-Secondary Instructor (CPI) credential, a Master of Science in taxation from Golden Gate University, a Bachelor’s Degree in Business Economics with an emphasis in accounting from The University of California Santa Barbara, and a Global Management Accounting Designation (CGMA) from The American Institute of CPA (AICPA).
Mr. Steele has also authored five books that can be found on Amazon or in audiobook format on Audible. He has developed bestselling courses in accounting topics including financial accounting and QuickBooks accounting software.
In addition to working as an accountant, teaching, and developing courses Mr. Steele has helped create an accounting website at accountinginstruction, a YouTube channel called Accounting Instruction, Help, and How Too, and has developed supplemental resources including a Facebook Page, Twitter Page, and Podcasts that can be found on I-tunes, Stitcher, or Soundcloud. Mr. Steele's teaching philosophy is to make content applicable, understandable, and accessible.
Adult learners are looking for application when they learn new skills. In other words, learners want to be able to apply skills in the real world to help their lives. Mr. Steele’s formal accounting education, practical work experience, and substantial teaching experience allow him to create a curriculum that combines traditional accounting education with practical knowledge and application. He accomplishes the goals of making accounting useful and applicable by combining theory with real-world software like Excel and QuickBooks.
Many courses teach QuickBooks data entry or Excel functions but are not providing the real value learners want. Real value is a result of learning technical skills like applications, in conjunction with specific goals, like accounting goals, including being able to interpret the performance of a business.
Mr. Steele makes knowledge understandable by breaking down complex concepts into smaller units with specific objectives and using step by step learning processes to understand each unit. Many accounting textbooks cram way too much information into a course, making it impossible to understand any unit fully. By breaking the content down into digestible chunks, we can move forward much faster.
Mr. Steele also makes use of color association in both presentations and Excel worksheets, a learning tool often overlooked in the accounting field, but one that can vastly improve the speed and comprehension of learning accounting concepts.
The material is also made understandable through the application of concepts learned. Courses will typically demonstrate the accounting concepts and then provide an Excel worksheet or practice problems to work through the concepts covered. The practice problems will be accompanied by an instructional video to work through the problem in step by step format. Excel worksheets will be preformatted, usually including an answer tab that shows the completed problem, and a practice tab where learners can complete the problem along with a step by step presentation video.
Mr. Steele makes learning accounting accessible by making use of technology and partnering with teaching platforms that have a vision of spreading knowledge like Udemy.