Finances for non-financiers

The course Finances for non-financiers is part of the NEXT LEVEL MANAGEMENT program <= click here for more details.

I. INTRODUCTION TO BUSINESS FINANCIALS

• Presentation of the main financial instruments of a business
• Profit and loss account
• Balance sheet
• Cash flow

II. BALANCE SHEET

• Balance sheet – frozen picture of a company
• General equation
• Main elements of a balance sheet
• Working capital – why it is so important for the financial healthy of a business

III. PROFIT AND LOSS ACCOUNT

• General equation
• Income and expenses – who are and how we can identify them
• EBIT and EBITDA – what it means and when we use one or another
• Fixed and variable costs
• Direct versus indirect costs
• Break even point

IV. CASH FLOW

• Sources of the cash flow
• Profit versus cash flow – the reconciliation of this two reports
• Cash flow and the link with all other financial reports
• Cash flow management – red flags and specific techniques to optimize the liquidity of a company
• Cash flow forecast – crucial instrument in today’s challenging business environment

V. FINANCIAL ANALYSIS

• When a business becomes profitable – break even point
• Main financial KPI’s – definitions, WHEN, WHERE and HOW we use them
• Profitability (gross margin, ROCE, ROE, Asset turnover)
• Liquidity (Current ratio, quick ratio, DRO, DPO, stock rotation, WC/net sales)
• Debt and Equity KPI’s
• Stock market KPI’s

VI. PLANNING AND BUDGETING

• Budgeting and financial culture of a company
• Building the budgets – methodology and best practices
• Budgeting and controlling

VII. How We Can Increase The Profitability Of A Company

• Return on sales versus asset turnover
• Annual discount rate – direct impact of discounts, promotions and bonuses on company’s profitability
• Accruals (clients, inventory etc.)  – How they impact the company’s profitability
• Methods and best practices for increasing profitability

The price includes:

•  course facilitation for 2 days, from 09:00 a to 05:00 pm;
•  course resources and a participation diploma.

MORE INFORMATION

daniela.penescu@dynamic-learning.ro
+40 744 65 27 00