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Finance for Non-Financial Managers

Commercial Financial Awareness

FA16

Introduction

Every professional needs to understand financial concepts to be able to participate in business.  This course is designed to offer delegates the essential learning they require to be an excellent commercial performer. 

The programme explores how to read and interpret published financial information, and how to understand the key ratios, which every business person should know.  It is also focuses on helping participants to have a positive impact on a company’s budgeting process, and to be effective controllers of costs and margins.  Delegates will develop skills and tools to support high-level investment decisions, equipping them to provide value to any organisation in the achievement of its financial goals.

Who should attend

This course is suitable for all non-financial staff, including Managers, Supervisors and Team Leaders who need a better understanding of the financial aspects of business.  No previous financial knowledge is required.

COURSE PROFILE

Creating and funding your business

  • Limited companies and other business structures
  • Your funding strategy: raising debt and equity
  • Managing risk: the effect of funding choices on financial health

Understanding companies’ published financial statements

  • Reading and interpreting financial position (balance sheets)
  • Reading and interpreting profit and loss (income statements)
  • Judging companies’ performance and health from their published information

Key ratios and Key Performance Indicators (KPIs)

  • Measuring investment return: earnings per share and beyond
  • Measuring financial health: a detailed look at leverage and interest cover
  • Measuring performance: assessing and improving profit margins

Excellence in planning and budgeting

  • Strategic plans, operating plans, and annual budgets
  • Negotiating and creating a profitable annual budget
  • Understanding and controlling cost behaviour

How finance people make decisions

  • Cash flow projections and Discounted Cash Flow (DCF)
  • The relevance of Return on Investment (ROI) and Cost of Capital (WACC)
  • Full circle: relating cash flow returns to your original funding strategy
SKILLS

At the end of this course, delegates will be able to:

  • Use key financial concepts in business discussions
  • Understand, and participate in, good financial decisions
  • Participate effectively in budgeting and cost control
  • Read and interpret companies’ published financial information
  • Appreciate how businesses raise finance, and make funding decisions
  • Understand key financial ratios and their uses
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