Finance for Non-Finance Professionals Training Course

This financial awareness course will give you a basic understanding of the three financial statements: the Profit & Loss Statement (P&L), the Balance Sheet, and the Cash Flow Statement. You will not only learn how they work but also how to analyse them to understand the performance of the business. You will learn how to analyse the performance of the company even further by using key financial ratios, such as Return on Assets and Current Ratio. We will look at Working Capital Management, which is how to increase your cash flow (on the same revenue). Finally, the course will cover Investment Appraisal, which is how to determine whether a new investment (e.g. new manufacturing line) or new business venture (e.g. a new branch) will provide a good Return on Investment. Join our upcoming finance for non-finance professional training workshop at our training institute in Dubai.

This course is very hands-on. For each section of the course, once you learn the structure and methods, you will do tasks, quizzes, and exercises.

• A solid understanding of the structure of the P&L, the Balance Sheet, and the Cash Flow Statement
• The ability to “read” the financial statements to understand the performance of the business.
• An understanding of deprecation.
• To understand the connections between the three financial statements.
• The knowledge of how to manage Working Capital to increase cash flow (on the same revenue).
• An understanding of the importance of optimum asset utilization.
• An understanding of how to use financial ratios to analyse the performance of the nosiness.
• The ability to use Investment Appraisal techniques (ROI) to evaluate investment decisions.

• The purpose of profit
• Understanding and analysing the P&L
  • Direct costs and indirect costs
  • Analysing gross profit
  • Operating expenses
    • Analysing operating expenses
  • More controllable vs less controllable costs
  • Comparing and contrasting EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), EBIT (Earnings Before Interest and Taxes) and PAT (Profit After Tax)
• The 1% difference
  • How small changes leverage to big changes
• Two forms of analysis
  • Vertical analysis
  • Horizontal analysis
  • Performing vertical and horizontal analysis on the P&L
• Understanding and Analysing the Balance Sheet
  • The structure of the Balance Sheet: Assets, Liabilities and Owner’s Equity
  • Analysing Working Capital
    • Working Capital as a ratio of revenue
    • How to free up cash through Working Capital Management
  • Analysing the capital structure
    • Short-term and long-term debt
    • Changes in Owner’s Equity
  • What does a ‘weak’ Balance Sheet mean vs a ‘strong’ Balance Sheet mean?

• Accrual accounting
  • The Revenue Recognition Principle
  • The Matching Principle
  • How accruals are managed on the Balance Sheet
• Depreciation
  • Depreciation calculation method
  • Depreciation on the P&L and the Balance Sheet
  • Depreciation as accrual accounting
• Understanding and analysing the Cash Flow Statement
  • The structure of the Cash Flow Statement: Operating Cash Flow, Investing Cash Flow, Financing Cash Flow
  • Free Cash Flow
• The link between Working Capital and Cash Flow
• How the P&L, Balance Sheet, and Cash Flow Statements connect

• Ratio Analysis
  • Profit ratios: Gross Margin, EBITDA Margin, Net Margin
  • ROA (Return On Assets), ROCE (Return On Capital Employed), ROE (Return On Equity)
  • Liquidity ratios: Current Ratio, Quick Ratio
  • Operational efficiency ratios: Inventory Turn/Days, Days Sales Outstanding, Days Payable Outstanding
  • Financial risk ratios: Leverage Ratio, Interest Cover
• Investment Appraisal (ROI – Return on Investment)
  • What is investment appraisal?
  • Determining the investing cash flows
  • Deciding the required/targeted rate of return (WACC)
  • The first filter: Payback Period
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)

At the end of the day, students will have an opportunity to ask questions and fill out an action plan.