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Training Course Summary:

This course offers an in-depth knowledge of financial terms and concepts to enable directors and senior executives to evaluate the financial position of their business/business unit and make financially sound strategic decisions.

By the end of this course you will be able to:

Understand the terminology used by finance directors or accountants allowing you to contribute more effectively to financial discussions at board and senior managerial level.
Have the knowledge and skills to evaluate and monitor the financial health of a business and spot warning signs through the use of accepted financial ratios and reports.
Develop project appraisal skills using discounted cash flow techniques.
Appreciate the role of finance in creating shareholder value.
Learn to understand and compile financial statements in accordance with accounting principles and standards.
Distinguish between management accounts and the statutory financial reports of a company.
Read, analyse and draw conclusions from financial information.

Who Should Attend:

Suitable for senior managers and non-financial directors with a basic knowledge of finance who need to develop their understanding in order to play a more active role in financial planning and financial strategies

Training Course Overview/Content:

Introduction

Understanding your role and how it fits with the finance function (and the finance director)
The difference between management accounts and the statutory financial reports of a company
Where finance fits into, and affects your role

Understanding and Presenting Financial Statements

Analysing and presenting financial information
Interpreting and analysing financial statements

Evaluating the Financial Health of your Business:

Spotting the warning signs - monitoring cash flow
Company appraisal through financial analysis
Appraising a project: discounted cash flows
Measuring risk and return

Sources of Finance

The various sources of finance available to a company and their relative advantages and disadvantages
Evaluating investment options

The Financial Impact of Acquisitions and Growth

Vertical acquisition and the impact on company accounts
Cash flow impact
Investment
Goodwill - both positive and negative

Methods of Companies’ Valuation

Asset value
Pay back value
Return on investment
Capitalisation of investment

Applying Financial Analysis for Shareholder Value

EVA - Economic Value Added
Profit versus cost of capital + risk on equity

The Use of Financial Budgets - Strategic Costing

The impact that activity based costing, marginal costing and full costing have on profit