The purpose of the CISRO Finance for Non-Financial Executives seminar is to provide understanding on how to read and analyze financial reports to make better business decisions.
Lectures, group exercises, and class discussions are used to explain financial terminology, methodology, and key performance indicators to managers and professionals in non-financial areas
SEMINAR COURSE OUTLINE
How to Read Financial Reports:
- accounting on a cash basis and accrual basis
- the 3 basic financial reports: the balance sheet, the statement of earnings, and the statement of cash flow
- understanding working capital, fixed capital, debt and equity
- evaluating goodwill and other intangible assets
Analysis for Financial Decisions:
- the three roles of managers: four keys to rational decision making, the time spectrum of decisions, and building non-financial considerations into your decisions
- behaviour of costs, cost classification, and cost - volume - profit (CVP) relationships
- break-even and Leverage Analysis: production planning, pricing, the 'make-or-buy' decision, and the promotional mix
Criteria for Financial Decisions:
- financial indicators of operating performance: degree of operating leverage, 12 integrated tests of operating performance, operating for profits and cash flow, and Return On Net Operating Assets(RONA) employed
- financial indicators of corporate performance: ratios for corporate planning and control, return on capital employed, return on tangible equity, and measurement of corporate financial risk
- cost factors in pricing: marginal cost, full cost (absorption costing), target Return on Investment (ROI), and activity-based costing
Capital Investments & Financing:
- capital Investments Analysis
- decision criteria: ROI, net present value, internal rate of return, equivalent annual cost
- risk analysis in capital investment decisions: payback, interest-adjusted payback, and leverage ratios
- the capital budget
Intermediate & Long-Term Financing:
- sources of long-term capital - negotiated debt versus equity
- determining the cost of alternative funding sources
- planning the capital restructuring
Maximizing Shareholder Wealth
- measuring Economic Value Added (EVA)
- integrating capital investments, corporate finances, operations and share prices
- how to value a company
At the end of this seminar, participants will have:
The following materials will be supplied to all participants:
- read financial reports.
- obtained financial information pertinent to their functions and objectives.
- prepared realistic budgets and tested their assumptions.
- used financial ratios, break-even analysis and zero-based thinking for better decision-making.
- analyzed cash flow and return on investment and risk.
- better managed company growth.
- prepared forecasts to year-end from interim financial reports.
- maximized shareholder wealth.
The costs are upon demand and are based on an 8-person-per-seminar grouping. Please contact CISRO if you have any questions or require more information on pricing.