The first part of this course takes a backward-looking approach to the analysis of a firm and evaluates its past and current financial position, risk and profitability through a thorough discussion of its financial reports. This is the process of financial statement analysis, a process which should lead to meaningful strategic recommendations. The second part of the course takes a forward-looking approach to a firm’s operations by illustrating the steps needed for effective capital budgeting. Selecting a project among a menu of possible projects is arguably the single most relevant decision which companies make. The two components are presented in an integrated way to highlight their conceptual relation and their complementary role in the context of effective managerial decision-making.
This course is the prerequisite for Financial Statement Analysis and Capital Budgeting and is the first class which should be taken in pursuit of the Financial Management Certificate.
In our Finance for the Non-Financial Manager course, you will gain an understanding of financial analysis in order to inform your organization’s potential investment options. Learn how to assess your company's financial position, risk, and profitability and how to choose between competing projects and priorities. Whether you’re a leader making decisions with financial implications, or a rising manager looking for a strong introduction to financial concepts and analyses, this course will enhance your skill set through lectures, exercises and the discussion of real-world business cases.
Day 1
Agenda
9:00 AM – 12:00 PM
Lecture/Discussion (Live class) Financial Reporting
•Introduction to the process of financial reporting and its role for effective decision making
•Understanding balance sheet information: Theory and examples
12:00 PM – 1:00 PM
Lunch
1:00 PM- 5:00 PM
Lecture/Discussion (Live class) Financial Reporting Continued
•T-accounts and journal entries: Constructing a balance sheet from first principles
•Using journal entries to recognize assets, liabilities, and shareholders' equity: A holistic view of the financial position of the organization
Day 2
•Revenue and cost recognition
•Understanding income statement information: Theory and practice
•Understanding cash-flow statement information: Theory and practice
Lecture/Discussion (Live class) Financial Statement Analysis
•Using financial ratios to measure the financial health, profitability, and risk of any organization
Day 3
Lecture/Discussion (Live class) Financial Statement Analysis Continued
•Using financial statements to provide strategic recommendations
•Examining Astral's financial statements: Recommending a financially-sound path forward for Astral
Lecture/Discussion (Live class) Capital Budgeting
•How to model a project, forecast revenues and costs, derive a project's expected contribution to the company's value, and select specific projects within a menu of available options
•Astral's capital budgeting problem: Selecting projects in an uncertain environment
Day 4 (Optional- highly recommended)
10:00 AM – 12:00 PM
Practice (Live class)
•Problems from the workbook and troubleshooting
*Please note that break times will be incorporated in the morning and afternoon sessions. Instructor may adjust to accommodate for lecture and discussion flow
Live Zoom sessions and all course participants are expected to be present