Finance & Accounting for Management Consultants and Analysts
4.5 (90 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
1,380 students enrolled

Finance & Accounting for Management Consultants and Analysts

Practical guide that will help you understand financial statements & do financial analyses during consulting projects
4.5 (90 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
1,380 students enrolled
Created by Asen Gyczew
Last updated 8/2020
English
English [Auto]
Current price: $132.99 Original price: $189.99 Discount: 30% off
5 hours left at this price!
30-Day Money-Back Guarantee
This course includes
  • 4.5 hours on-demand video
  • 1 article
  • 51 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
Training 5 or more people?

Get your team access to 4,000+ top Udemy courses anytime, anywhere.

Try Udemy for Business
What you'll learn
  • Analyze financial statements of a firm especially income statement, balance sheet, cash flows
  • Create a model of profit and loss statement (income statement) in Excel
  • Analyze in Excel financial indicators and draw conclusion out of that
  • Estimate the value of a firm using DCF and multiplier method
  • You will understand the main difference between financial statements in USA and Europe
  • You will master main bookkeeping / accounting principles
Requirements
  • Basic or intermediate Excel
Description

What is the aim of this course?

During many consulting projects you will have to analyze financial statements (balance sheet, income statement, cash flows) and draw conclusion about specific company. This is especially true during due diligence, strategic projects and turn-arounds. Financial analyses require relatively good understanding of finance and accounting. Business Analysts and Management Consultants that did not study Finance or Business tend to have some problems with navigating this area. This course will help you overcome this problem. Those of you who have finished Business School or Economics will find here a great refresher with a lot of practical tips how to do certain analysis during a consulting project.

This course will help you drastically improve your knowledge and skills in finance and accounting. It is designed for people who are or want to become management consultants, business. In the course you will learn 5 main things:

  1. How to read financial statements such as a balance sheet, an income (profit & loss) statement, cash flows

  2. How to draw conclusions from financial statements

  3. Main principles of accounting

  4. How to analyze financial indicators

  5. How to estimate the value of the firm / do valuation

I will NOT teach you everything about finance & accounting because it is simply not efficient (and frankly you don’t need it). This course is organized around 80/20 rule and I want to teach you the most useful (from business analyst / consultant perspective) things that will enable you to understand the financial data and analyze them.

The course is based on my 15 years of experience as a consultant in top consulting companies and as a Board Member responsible for strategy, improvement and turn-arounds in biggest companies from Retail, FMCG, SMCG, B2B and services sector that I worked for. On many occasions I had to analyze and model in Excel the business I was responsible for. On the basis of what you will find in this course I have trained over 100 consultants, business analysts and managers who now are CFOs, Investment Directors in PE, Sales and Marketing Directors, Operational Directors, COOs, Directors in Consulting Companies, Supply Chain Directors, Board Members etc. On top of that my courses on Udemy were already taken by more than 51 000 students.

I teach through cases, so most of the lectures are case studies showing some business problems solved in Excel. There will be also overview of main differences between the way data are presented in USA and in Europe. To every lecture you will find attached (in additional resources) the Excels shown in the lecture so as a part of this course you will also get a library of ready-made analyses that can, with certain modification, be applied by you in your work.


Why I decided to create this course?

Analyzing financial situation of the firm is a fundamental skill in consulting. It helps you understand the current situation of the firm, identify problems and estimate potential savings. Many Management Consultants and Business Analysts did not finish Business Schools and sometimes struggle with some financial analyses. This sometimes puts them at a disadvantage and makes it difficult for them to get promoted. On top of that, many consultants and analysts that did study finance & accounting at university / collage have forgotten some things.

Therefore, I have decided to create this course that will help students understand or refresh the essential elements of finance and accounting. The course will give you the knowledge and insight into real life case studies that will make your life during a consulting project much easier. Thanks to this course, you will know how to understand the financial statements, analyze them and draw conclusions from them. You will also master the basics about valuation.

To sum it up, I believe that if you want to become a world-class Management Consultant or Business Analyst you have to have a pretty decent understanding of finance and accounting. That is why, I highly recommend this course to Management Consultants or Business Analysts, especially those that did not finish business schools or Economics.


In what way will you benefit from this course?

The course is a practical, step by step guide loaded with tones of analyses, tricks, hints that will significantly improve your knowledge of finance and accounting. There is little theory – mainly examples, case studies with a lot of tips from my own experience as well as other notable examples worth mentioning. Our intention is that thanks to the course you will learn:

  1. How to read financial statements such as a balance sheet, an income (profit & loss) statement, cash flows

  2. How to draw conclusions from financial statements

  3. Main principles of accounting

  4. How to analyze financial indicators

  5. How to estimate the value of the firm / do valuation

You can also ask me any question either through the discussion field or by messaging me directly.


How the course is organized?

The course is divided currently in 4 sections and I will be adding new sections to address other important issues. Currently you will find the following sections:

  • Introduction. We begin with little intro into the course. I will show you here what you can expect from this course and how it is organized

  • Profit & loss statement. In the second section I will concentrate on the first financial statement the income statement often called profit & loss statement (P&L). I will show you step by step all elements of profit and loss statement. We will also have a look at examples of P&Ls for firms like Amazon, Disney, P&G, LPP. We will devote a lot of time to the depreciation and amortization

  • Modeling of Profit & loss statement for FMCG Firm. In this section I will show you an example how to model the profit & loss statement in Excel for FMCG business model.

  • Balance Sheet. In the 4th section I will concentrate on the second financial statement – the balance sheet. As always we will go through each and every element of the Balance Sheet. We will also discuss the difference between the USA and European balance sheets. We will also have a look at examples of balance sheets for firms like Amazon, Disney, P&G, LPP.

  • Cash flow statement / statement of cash flows. In this section I will concentrate on the last financial statements – the cash flow. I will show you step by step all elements of cash flow . We will also have a look at examples of cash flows for firms like Amazon, Disney, P&G, LPP.

  • Financial analysis of indicators. In this section we will have a look at different sets of financial indicators that you can use to analyze a firm. We will have a look at Profitability ratios, ROE Decomposition (DuPont Model), Liquidity ratios, Activity ratios, Debt ratios. We will also calculate them for Amazon so you can see how to use those ratios in practice.

  • Valuation. In the last section we will discuss different methods of valuating the firm (estimating its valuation). We will have a look at the DCF methods as well as the Multiplier methods. We will use a case study to see how these methods work in practice.



You will be able also to download many additional resources

  1. Excels with analyses shown in the course

  2. Presentation of slides show in the course

  3. Links to additional presentations and movies

  4. Links to books worth reading


At the end of my course, students will be able to…

  • Analyze financial statements of a firm especially income statement, balance sheet, cash flows

  • Create a model of profit and loss statement (income statement) in Excel

  • Analyze in Excel financial indicators and draw conclusion out of that

  • Estimate the value of a firm using DCF and multiplier method

  • You will understand the main difference between financial statements in USA and Europe

  • You will master main bookkeeping / accounting principles

Who should take this course? Who should not?

  • Management Consultants

  • Business Analysts

  • Startups founders

  • Managers

  • Students that did not finish business school

  • Students who want to refresh their knowledge about Finance & Accounting

Who this course is for:
  • Management Consultants
  • Business Analysts
  • Startups founders
  • Managers
  • Students who want to refresh their knowledge about Finance & Accounting
  • Students without MBA / business school education
Course content
Expand all 107 lectures 04:19:07
+ Introduction
5 lectures 09:45

We begin with little intro into the course. I will show you here what you can expect from this course and how it is organized

Preview 02:06

A little bit about me and my experience

Preview 01:47

Here I will discuss what you can learn from the course, what will be the order in which I will show you the 

Preview 02:43

Here I will show you what to do if a blurry image appears

How to deal with Blurry image
02:04

Here I will show you how to find additional resources attached to the coruse like Excel files, presentations, links etc.

How to reach additional resources
01:05
+ Profit & loss statement
37 lectures 01:20:40

In the second section I will concentrate on the first financial statement the income statement often called profit & loss statement (P&L). I will show you step by step all elements of profit and loss statement. We will also have a look at examples of P&Ls for firms like Amazon, Disney, P&G, LPP. We will devote a lot of time to the depreciation and amortization

Preview 01:50

There are 3 financial statements that you have to look at when analyzing the firm: Profit & Loss / Income Statement, Balance Sheet, Cash flow. Here we will discuss what each and one of them covers, what kind of information it gives you

Preview 03:07

There are 2 main goals of P&L / Income statements. It shows you how much you have earned / lost and it shows you how you did it? This has impact on how we show the profit and loss statement and we will discuss it in this lecture

Preview 01:51

There are 3 ways in which you can get Revenue / incomes:

  • You can sell your own products or goods from other firms

  • You can get interest from money you have or get other income from financial activities

  • You can get other operating income i.e. higher value of your assets, grants, penalties

We will discuss them in this lecture

Revenue – General division
02:25

Let’s imagine that you have to estimate the revenues of a burger chain. Using data try to estimate the 3 groups of revenue & income

Preview 01:15

Here I will show you the data in Excel file that we will use for this case.

Preview 00:49

Here I will show you the solution to the previously introduced case study.

Revenue – Case study – Solution
01:26

There are 3 main components of costs

  1. Operating Expenses

  2. Interest paid as well as other financial costs i.e. gains due to exchange rate differences

  3. You can get other operating costs i.e. Lower valuation of your assets, penalties paid

We will discuss them in this section

Costs – general division
01:41

We are back to our burger chain in Spain. Using data try to estimate the 3 groups of costs / expenses.

Costs – Case study – Introduction
01:09

Here I will show you the solution to the previously introduced case study.

Costs – Case study – Solution
01:25

Now let’s get everything together and see different levels of Profit / Income. We will use the division of revenue and costs into 3 components to define different levels of profits / margins

Preview 03:43

Now let’s get the revenues and costs that you have estimated previously together. Try using previous calculations to estimate the Profits / Income on different levels

P&L – Case study – Introduction
00:46

Here I will show you the solution to the previously introduced case study.

P&L – Case study – Solution in Excel
03:17

Here I will show you the solution to the previously introduced case study.

P&L – Case study – Solution in Power Point
01:53

Let's have a look at some alternative names for profits margins that are being used

P&L – Alternative names for profits
01:36

There are 2 general ways in which you can divide the operational expenses / costs to present them to the Board of Management & shareholders: 

  1. By type of costs

  2. By stages

We will discuss them in this lecture

Division of operating Expenses – by type of costs
04:09

In this lecture we will have a look at how costs can be divided by stages

Preview 02:47

COGS (Cost of Goods Sold) are important part of Operating Expenses. They have plenty alternative names: costs of sales, cost of revenue etc. We will discuss them in this lecture

COGS alternative names
01:43

Gross Profit / Gross Margin is an improtant stage between revenues and operating profit. We will discuss in this lecture what it is and how it can be calculated

What is Gross Profit / Margin
02:21

Net Profit /  Net Margin is an improtant stage between Gross Margin / Gross Profit and operating profit. We will discuss in this lecture what it is and how it can be calculated

What is Net Margin
01:38

We are back to our burger restaurant chain case study. You will be asked to estimate the Gross Profit / Margin given more detailed data on costs

Gross Profit – Case study – Introduction
00:37

Let's have a look at data that we will need to solve the case study

Gross Profit – Case study – Data Available
02:08

Here I will show you the solution to the previously introduced case study.

Gross Profit – Case study – Solution in Excel
02:00

Here I will show you the solution to the previously introduced case study.

Gross Profit – Case study – Solution in Power Point
01:53

Here we will have a look at the income statement / profit and loss statement of Amazon

Preview 02:49

Here we will have a look at the income statement / profit and loss statement of Disney

P&L example – Disney
02:33

Here we will have a look at the income statement / profit and loss statement of P&G

P&L example – P&G
02:19

Here we will have a look at the income statement / profit and loss statement of LPP

P&L example – LPP
01:37

Depreciation is a weird cost because it is not a cash cost and its size depends on the assumed accounting policy. It is crucial also for determining the value of non-current assets. Depreciation is trying to estimate to what extent a fixed asset was used in a specific period, what part of it’s value was transferred on products produced / sold? We will have a closer look at Deperciation / Amortization in this lecture

Depreciation / Amortization – a weird cost
02:26

We will have a look at how to calculate the depreciation / amortization in practice

Depreciation / Amortization – Short example
04:27

We will have a look at how to calculate the depreciation / amortization in practice

Depreciation / Amortization – Short example – Excel
02:34

Let’s imagine that you are supposed to calculate the depreciation & amortization for a firm that does hand-made clay products

Preview 01:18

I will show you in this lecture how to model Intangibles;

Intangibles – modeling of gross value, net value and depreciation
04:47

Capex and Depreciation are one of the most difficult elements that you will model in Excel. Therefore, we have created a separate section devoted just to this subject . In this section you will learn how to follow specific group of assets, truck their gross and net value and calculate depreciation.

Machinery – modeling of gross value, net value and depreciation
01:51

I will show you in this lecture how to model Machinery

Depreciation / Amortization – Summary of the Case study
01:20

We will this in this lecture the definition of EBITDA (Earnings Before Interest Taxes, Deprecation & Amortization) and how you can calculate it. We will also link it with previous things we have talked about: Gross Margin, EBIT etc

Preview 01:42

There are 3 main reasons why managers, investors, analysts look at EBITDA:

  • You want a Profit that is impacted by cash costs only

  • It is a good proxy for Cash generation

  • Used widely for Valuation

We will discuss it in this lecture

Why people look at EBITDA?
03:28
+ Modeling of Profit & loss statement for FMCG Firm
12 lectures 23:43

In this section I will show you an example how to model the profit & loss statement in Excel for FMCG business model

Preview 01:32

In this section we will move to products. The first one to be discussed are FMCG products. I will show you the main challenges they are facing, KPIs that matter in B2C service, examples of companies. As an example I will show you how to model in Excel Cosmetics business.

Introduction to the FMCG Business Model
00:51

I will shortly go through things that are important in other FMCG.

Things that matter in FMCG Business Model
03:01

I will show you how we will approach modeling FMCG business model in Excel

Introduction to modeling FMCG Services in Excel
00:32

I will show you in this lecture what KPIs, drivers are important for the FMCG model and how do they generated the end results – operating profti

Preview 01:52

In this lecture I will go briefly through the main assumptions for the model that we will work on in Excel. I will also go through the first sheet in which I generate the sales

Preview 02:26

In this lecture I will show you how we will estimate the fixed and variable costs in production

FMCG business model in Excel - Fixed and Variable Production Costs
03:25

Here I will show you how to model Gross Margin for FMCG firms

Preview 02:17

Now it is time to estimate the cost of sales by channels and cost of marketing

FMCG business model in Excel - Selling & Marketing Costs and Net Margin
02:44

In this lecture I will show you how to estimate the Net Margin using Gross Margin and the cost of sales and marketing

FMCG business model in Excel - Net Margin
01:44

We have also take care of head office costs to get to profit and loss account

FMCG business model in Excel - Head Office costs
00:56

Finally we estimate the profit and loss account and we can try to draw conclusion on the business

FMCG business model in Excel - P&L
02:23
+ Balance Sheet
22 lectures 59:43
  • In the 4th section I will concentrate on the second financial statement – the balance sheet. As always we will go through each and every element of the Balance Sheet. We will also discuss the difference between the USA and European balance sheets. We will also have a look at examples of balance sheets for firms like Amazon, Disney, P&G, LPP.

Preview 00:57

Balance sheet is one of the 3 main finacial statements. It:

  1. Shows what you have / what you need to have a legitimate business

  2. Shows you also where you got the money from to buy the things you have (shareholders, banks, suppliers, other borrowers etc.)

We will discuss it in this lecture

What is a Balance Sheet?
02:23

Let’s discussed the components of both sides of balance sheet: Assets & Liabilties. We will have a look at the European and USA way of presenting data

Preview 03:21

Just as a reminder Non-current assets are a part of Assets. In USA you can find them in the lower part of the Assets. In Europe you can find them in the top part of the Assets. Let’s see what is included in non-current assets

Non-current assets – General overview
03:06

Just as a reminder current assets are a part of Assets. In USA you can find them in the top part of the Assets. In Europe you can find them in the lower part of the Assets. Let’s see what is included in non-current assets

Current assets – General overview
02:44

Here we will discuss how you can increase equity. There are 2 main ways to do that:

  1. Capital paid in by Shareholders

  2. Retained earnings

We will discuss it in this lecture

Equity – Main sources
01:49

There are at 3 different prices when it comes to share:

  1. Selling price of a share at the moment of issuing

  2. Selling price of a share at current moment

  3. Face value of a share / Par value

We will discuss it in this lecture

Equity – Share prices
02:53

Just as a reminder Shareholder’s Equity is a part of Liabilities & Equity. In USA you can find them in the lower part of Liabilities & Equity. In Europe you can find them in the top part of the Equity & Liabilities. We will discuss what the Equity consits of both in USA and in Europe

Preview 01:37

Just as a reminder non-current liabilities is a part of Liabilities & Equity. In USA you can find them in the middle part of Liabilities & Equity. In Europe you can find them also in the middle part of the Equity & Liabilities. We will discuss what the non-current liabilities consits of.

Non-current liabilities – General overview
02:36

Just as a reminder current liabilities is a part of Liabilities & Equity. In USA you can find them in the top part of Liabilities & Equity. In Europe you can find them in the lower part of the Equity & Liabilities. We will discuss what the -current liabilities consits of.

Current liabilities – General overview
01:41

Imagine that we would have to trace the changes in the balance sheet for a ceramic tiles producer. Try to solve the exercises on your own

Balance Sheet – Short Exercises – Introduction
02:46

Imagine that we would have to trace the changes in the balance sheet for a ceramic tiles producer. Try to solve the exercises on your own. We will discuss the data available for this case.

Balance Sheet – Short Exercises – Data Available
03:23

Here we show the solution to the previously introduced case study

Balance Sheet – Short Exercises – Solution Part 1
04:20

Here we show the solution to the previously introduced case study

Balance Sheet – Short Exercises – Solution Part 2
03:34

Accrual Accounting has impact both on costs as well as revenues. We will discuss it in this lecture

Accrual accounting
03:42

Imagine that we would like to see what will be the impact of prepayment for a software on the balance sheet of the ceramic tile producer

Prepayments – Short Exercises – Introduction
00:56

Imagine that we would like to see what will be the impact of prepayment for a software on the balance sheet of the ceramic tile producer. Here we will look at available data.

Prepayments – Short Exercises – Data Available
01:09

Here we show the solution to the previously introduced case study

Prepayments – Short Exercises – Solution
02:53

Here we will go through the Balance Sheet of Amazon

Balance Sheet example – Amazon
03:52

Here we will go through the Balance Sheet of Disney

Preview 03:02

Here we will go through the Balance Sheet of P&G

Balance Sheet example – P&G
03:40

Here we will go through the Balance Sheet of LPP

Balance Sheet example – LPP
03:19
+ Cash Flow
10 lectures 29:43

In this section I will concentrate on the last financial statements – the cash flow. I will show you step by step all elements of cash flow . We will also have a look at examples of cash flows for firms like Amazon, Disney, P&G, LPP

Preview 00:51

There are number of things you want to achieve by creating and analyzing Cash Flow (CF). We will discuss them in this section

What is the purpose of Cash Flow
03:20

We want to see how the Cash Flow have altered the cash position during the period. We divide the Cash Flows into 3 streams: 

  • CF from Operating Activities:

  • CF from Investing Activities:

  • CF from Financing Activities:

We will discuss this issue in this lecture

3 parts of Cash Flow
01:50

Let’s see how we calculate the Cash Flow from Operating Activities

Cash Flow from Operating Activities
04:19

Cash Flow from Investing Activities we would calculate using the following elements

Cash Flow from Investing
01:13

Cash Flow from financing activities consist of the following elements:....

Cash Flow from Financing
02:06

Let's have a look at the Cash Flows of Amazon

Cash Flow statement example – Amazon
04:07

Let's have a look at the Cash Flows of Disney

Cash Flow statement example – Disney
03:34

Let's have a look at the Cash Flows of P&G

Preview 04:06

Let's have a look at the Cash Flows of LPP

Cash Flow statement example – LPP
04:17
+ Financial analysis of indicators
11 lectures 31:10

In this section we will have a look at different sets of financial indicators that you can use to analyze a firm. We will have a look at Profitability ratios, ROE Decomposition (DuPont Model), Liquidity ratios, Activity ratios, Debt ratios. We will also calculate them for Amazon so you can see how to use those ratios in practice

Preview 02:15

There are plenty of profitability ratios used. We will discuss in this lecture the most popular ones

Preview 04:35

We will try to calculate the ratios for Amazon using data from Yahoo Finance. Let's have a look at available data

Profitability ratios – Case Study – Data Available
01:38

Here we will have a look at the solution to previously introduced case study.

Preview 02:28

ROE can be decomposed into other ratios. We will have a look how it can be done in practice

ROE Decomposition
03:46

There are plenty of liqudity ratios used. We will discuss in this lecture the most popular ones

Liquidity ratios – Overview
02:50

Here we will have a look at the solution to previously introduced case study.

Liquidity ratios – Case Study – Solution
02:32

There are plenty of activity ratios used. We will discuss in this lecture the most popular ones

Activity ratios – Overview
04:04

Here we will have a look at the solution to previously introduced case study.

Activity ratios – Case Study – Solution
02:29

There are plenty of debt ratios used. We will discuss in this lecture the most popular ones

Debt ratios – Overview
02:39

Here we will have a look at the solution to previously introduced case study.

Debt ratios – Case Study – Solution
01:54
+ Valuation
9 lectures 23:09

In this section I will show you how to do the valuation of the company that we have created the financial model for. We will use the 2 set of methods DCF and multipliers

Valuation Case study – Introduction
01:21

In this lecture I will show you the basic assumptions behind the DCF methods

Preview 02:16

There are 2 main DCF methods: FCFF and FCFE. Here I will show you the difference between them before we go into details

Preview 02:25

In this lecture we will apply the DCF using FCFF model to the financial model we have created

Difference between FCFF and FCFE
02:13

In this lecture we will apply the DCF using FCFF model to the financial model we have created

DCF method of valuation applied to FCFF
03:42

In this lecture we will apply the DCF using FCFE model to the financial model we have created

DCF method of valuation applied to FCFE
01:59

Now we move on to mutliplier methods of valuation

Introduction to using multipliers for valuation
02:56

We will start with the EBIT and EBITDA multipliers

Enterprise to EBIT or EBITDA
04:08

In this lecture I will use the P/E to do the valuation

Price per Earning multiplier
02:09
+ Conclusions
1 lecture 01:14

Here you will find suggested other courses that are worth taking along with special discounts for you. I hope you will enjoy the other courses as well. If you have any requests regarding new courses please let me know!.

Bonus Lecture
01:14