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Finance for Non-Finance Managers

Name: Finance for Non-Finance Managers
Rating: 4.5 (46 reviews)

Learn the jargon, know the numbers, learn to interpret them!

Created byCapital City Training Ltd

Last updated 11/2024

English

English [Auto],

What you'll learn

Learn and interpret commonly used financial jargon and understand its relevance and application
Understand the 3 primary financial statements (P&L, Balance Sheet, Cash Flow Statement) - their composition and inter-relationships
Evaluate financial performance using commonly quoted metrics and ratios
Appreciate the difference between management accounts and financial accounts - what, why, when and how?
Understand how to classify costs, ready for budgeting and forecasting in a simple Excel model
Evaluate investment projects and capital allocation, as well as how to turn these core techniques into valuing an entire business

Course content

9 sections • 50 lectures • 7h 16m total length

Introduction - the role of finance, reporting and the financial statements12:27
Downloads for the Financial Accounts Module
P&L Introduction - the layers of profit and why they are useful5:55
This session builds a simple trading P&L from scratch.
P&L Detail - going into more detail in the P&L11:23
We now start to identify and explain the different layers of profit in a P&L statement
Ready-Meals Ltd Example - Briefing from the tutor before you have a go2:33
With a downloaded Excel file, your tutor sets you up to have a go at building a P&L from underlying transactions.
Ready-Meals Ltd - Debrief from your tutor to see how well you did4:25
Greg, your tutor, will now walk and talk through what you - hopefully - have had a go at doing yourself in the Exercise!

Ratios Part 1 - the P&L and BS key numbers & terminology16:51
Before we get into the number crunching, we review key terms that you'll see in the P&L and Balance Sheet.
Ratios Part 2a - a structure for analysis - profitability8:32
Using the Excel exercise covered in Section 1, we start a structured approach to analysis by looking at P&L ratios.
Ratios Part 2b - a structure for analysis - liquidity6:14
We move on to look at 'liquidity analysis' - looking at a company's ability to pay its bills (cover its short-term liabilities).
Ratios Part 2c - a structure for analysis - efficiency6:30
The 3rd element of analysis we look at is Efficiency - ratios that tell us whether the company is using its assets well to generate revenue and thus profit.
Ratios Part 3a - a structure for analysis - returns7:01
The 4th element is Returns - the profits that can be returned to investors of all types (debt investors or equity investors).
Ratios Part 3b - a structure for analysis - credit7:33
And finally, perhaps the most important element to banks and other lenders - that is analysing a company's level of debt to help us assess its ability to repay.

ROCE Introduction - measuring success, and an exercise to think about13:56
How do we measure success of a company? Sales growth, profits, market share, profitability? Mark introduces the measures that may be used in this context. Mark will also look at generic corporate strategy and how it impacts on profitability, with an exercise for you to download and review.
Exercise Debrief - tutor debrief and discussion from previous lecture11:16
Your tutor, Mark, shows how company's market positioning and strategy impacts on the numbers.
ROCE - why it makes sense and a look at working capital investment9:09
We now move onto one of the most commonly applied investor ratios - ROCE: what it is, why it's used and how to interpret it. We start with a look at what Working Capital is and the funding gap, with a downloadable exercise.
Working Capital Debrief - debrief of the exercise and more intelligence on WC11:39
Mark, your tutor, illustrates the solution to the little Working Capital funding gap and why it's so critical - especially for growing companies.
ROCE Explained - with a full review of the logic of its components10:10
So how does Capital Employed link to a balance sheet and why do we look at this? Computing ROCE and which investors look at ROCE?
ROCE in practice - and a look at a 'Dupont' breakdown of the ratio13:14
ROCE vs ROIC - what's the difference? A look at the retail companies ROCE numbers and how to interpret them. Plus a look at breaking down ROCE into its component parts for added interpretation.

Cash review 1a - The structure of the cash flow statement - Direct method9:07
In the introduction we look at the structure of a published Cash Flow Statement and the 3 key categories - CFO, CFI and CFF. There are two methods of presentation for Cash Flows - and here we look at the simplest "Direct" method.
Cash Flows 1b - the Indirect method of cash flow presentation8:35
More commonly, the Cash Flow Statement is presented using an Indirect Method, reconciling profit to Cash Flows. Greg, your tutor, looks at the logic for this and introduces an exercise for you to have a go.

Introduction - Valuation rational and the different methods used9:10
P/E ratios and Equity Value (Market Cap)4:23
Tutor Debrief on Comps exercise6:45
Enterprise Value vs Equity Value and EV/EBITDA10:02
Back to the Comps Exercise and determining EV8:44
Valuation Maths and linking to Relative Value multiples14:33
The value of Big vs Smaller Companies4:40
One final Comps Question, plus debrief from the tutor6:17
DCF Introduction and a DCF Exercise8:41
DCF Exercise 'Luke' Debrief5:26
DCF Question - Tutor Brief2:00
DCF Question - Tutor Debrief5:27
Determining the WACC and DCF Exercise Brief7:02
DCF and WACC Exercise - Tutor Debrief and end12:14

Requirements

This program is aimed a people working with financial data from time to time, or learning the ropes, so no prior knowledge is required.

Description

Cut the jargon, get some sense on the finances, make informed decisions.

The three phrases above summarise the key learning outcomes of this self-paced e-learning course. Firstly, it aims to make sense of financial jargon, picking out key terms – and then, of course, showing you the application and relevance in an applied context. It also aims to link financial performance to business operations and make sense of how numbers are presented in Income statements, other “P&L” summaries, cash flow statements and balance sheets. The key learning outcome is understanding the relationship between them and what really matters when it comes to performance analysis and decision making.

We also explore how and why management accounts as well as financial accounts are prepared, and how you can make informed, value-added financial decisions that speak the language of the finance-people and business leaders. Have you ever wondered how businesses are valued? Understand that, and you will see why financial information presents the clues and information that matter to shareholders and directors. Key topics

1. The primary financial statements – their composition and inter-relationship

2. Cash vs profit – the categories of cash and what it means. Why cash flow is not profit

3. Commonly used terminology and its context / application

4. Evaluating financial performance from financial statements

5. The need for management accounts

6. Cost classification and budgeting

7. Relevant cash flows and key project appraisal techniques

8. How are businesses valued?

9. A balanced scorecard for evaluation projects and the business - the linking of financial performance measures to operational initiatives and performance measures to drive shareholder value.

Who this course is for:

You are probably someone working in a corporate environment - a general manager, non-finance director or manager, an IT manager, Project manager, a new hire in finance, someone responsible for your team budgets. There's no-one area that would not benefit from knowing this core financial knowledge.
There is no need to have prior knowledge, but you have an ambition or need to know more to help boost your understanding and even direct your career path.

Finance for Non-Finance Managers

What you'll learn

Explore related topics

Course content

Financial Accounts5 lectures • 37min

Ratios and Key Terms6 lectures • 53min

Return on Capital Employed6 lectures • 1hr 9min

Cash and Cash Flows2 lectures • 18min

The Time Value of Money2 lectures • 26min

Management Accounts5 lectures • 44min

Management Accounting and Investment Appraisal7 lectures • 55min

Business Valuation14 lectures • 1hr 45min

A Balanced Scorecard3 lectures • 29min

Requirements

Description

Who this course is for: