Finance for Non Finance Professionals/Entrepreneurs

Explore depreciation as a non-cash expense that affects book profit, preserves cash for working capital, and enables asset refinancing, while touching on basic tax planning and evasion vs avoidance.

Explore the profit and loss account (income statement), detailing revenue from sales or services, taxes, and other income, and distinguish vanity of sales from real cash.

Explore the expense side of the income statement, classify costs as direct versus indirect and by function or nature, and cover cost of goods sold, EBITDA, and budgeting for profit.

Apply a practical exercise to prepare the income statement for the year ended 31 March 2020 from a balance sheet, calculating operating profit, depreciation, tax, and proposed dividend.

Understand the balance sheet as a snapshot of a company's financial position, with four boxes—non-current assets, current assets, non-current liabilities, current liabilities—plus equity, depreciation, and sources and applications of funds.

Learn how a balance sheet dissects owners' money and lenders' money, classifies assets and liabilities, and uses working capital insights to optimize day-to-day wealth creation.

Learn to construct a balance sheet and income statement from given data by applying adjustments, depreciation, tax provisions, and non-cash items to calculate cash from operations and working capital.

Explore leading, concurrent, and lagging indicators, ratios, order book, stock, and cash in bank, plus balance sheets and profit and loss to reveal past performance for entrepreneurs.

Explore liquidity ratios, including the current ratio, quick ratio, and acid test ratio, and show how working capital reveals a firm's ability to meet short-term obligations.

Explore solvency ratios that reveal a company's long-term viability, including debt to assets, interest coverage, and debt service coverage, and assess borrowing capacity.

Analyze profitability by profit on sales and investment, exploring margins (gross, operating, EBIT), profit after tax, and key metrics like ROIC, ROE, and ROA to assess value creation.

Explore six efficiency ratios tied to the operating cycle, including inventory, receivable, creditors turnover, current assets turnover, working capital turnover, and total assets turnover, to measure how sales drive efficiency.

Explore seven key personal finance ratios, including liquidity, assets-to-debt, current, debt service, saving, solvency, and investment assets, to monitor wealth and plan for emergencies.

A practical case study analyzes the income statements of Tata Motors and Maruti Suzuki India Ltd, comparing margins, liquidity, and efficiency to show Maruti's stronger profitability.

Explore the operating cycle, or working capital cycle, from cash to cash, including raw materials, production, finished goods, and receivables, and identify leakage that hurts efficiency.

Explain the five types of profits and uncover the enterprise's value output, clarifying that revenue is not profit and depreciation ties capex to the P&L.

Learn how cash flows drive wealth creation by analyzing the cash flow statement, its three activities: financing, investing, operating, and their impact on inflows and outflows.

Cash flow is the lifeblood of business, linking income, liabilities, assets, and expenditures; learn how inflows and outflows reflect short- and long-term benefits.

Apply the cash flow statement by tracing operating, financing, and investing activities from opening and closing balances, calculating cash from operations, and reconciling net cash with cash equivalents.

Discover how finance drives day-to-day operating decisions, from inventory planning to pricing, using a bakery case study to show practical short-term decision making for non-finance professionals.

Explore how to make investment decisions using three barometers: investment objective, risk appetite, and time horizon. Tailor your personal or corporate portfolio to these factors.

Explore financing decisions driven by transaction, precautionary, and speculative motives, linking personal needs and corporate budgeting to choosing funding sources such as banks, investors, or internal liquidity.