PROGRAM SCHEDULE

Ref No: FI 115 Program Name: Financial Management Essentials for Non-Financial Professionals

Starts Ends Venue Fees Join Now
19 Jun 2023 23 Jun 2023 Dubai, UAE $ 4,750Registration Closed
13 Nov 2023 17 Nov 2023 Dubai, UAE $ 4,750Registration Closed
10 Jun 2024 14 Jun 2024 Dubai, UAE $ 4,750
04 Nov 2024 08 Nov 2024 Dubai, UAE $ 4,750

PROGRAM DETAILS



Introduction

In today’s global markets, financial awareness is now an essential requirement for every role and at every level in organistions. The integration of all processes within businesses means that accounting and financial information and techniques must be understood and communicated by all functions, but at a level greater than the budgeting and recording of financial information.

Participants in this seminar will be provided with knowledge that can be shared amongst their own colleagues, and with other departments. The awareness and understanding of the various financial techniques available will enable delegates to communicate better with financial professionals, within and external to their organization, and to become more effective managers. This will be achieved through:

  • Immediate use of the tools and techniques of financial analysis and financial management that will be acquired.
  • Becoming better informed and using new financial skills that will help improve management decision-making.
  • Communication of the various financial tools that are available to help the organisation enhance its competitive positioning and profitability and improve the all-important cash flow.

Learning Objectives

This course will give participants the required level of financial awareness and practical application, by enabling them to:

  • Analyse the profit and loss account (income statement), balance sheet, and cash flow statement, and use ratios to interpret financial statements and identify their limitations.
  • Appreciate the significant importance of cash flow (rather than profit) and discounted cash flow (DCF) in creating shareholder value.
  • Develop costing systems such as activity based costing (ABC) for optimal decision-making to maximize shareholder wealth.
  • Appreciate the role of managers in the budget process and the use of activity based budgeting (ABB).
  • Determine the cost of capital in order to evaluate alternative sources of financing and optimal financial structure (gearing).
  • Effectively manage cash and working capital to reduce costs and improve cash flow.

Training Methodology

This seminar provides theoretical background to some key areas of financial management, which are put into a real world context by providing a practical “toolkit” of financial techniques. It includes many worked examples and case studies relating to each of the topics covered. Participants are therefore provided with an opportunity to apply financial techniques in practice and to discuss the various issues that may arise. Many of the practical examples, for example investment appraisal, breakeven analysis, and budgetary control, are illustrated using Excel spreadsheets.

Program Content

 Day 1

Company objectives, accounting standards and financial statements

  • Measuring company performance
  • Value creation and the primary objective of maximization of wealth
  • Profit and loss account (income statement)
  • Balance sheet
  • Cash flow statement

Reading and interpreting financial statement

  • Measurement of operating performance
  • Measures of financial performance and financial position
  • Risk measurement
  • Limitations of ratio analysis

Cost/volume/ profit (CVP) analysis

  • Cost, volume, profit relationships
  • Break-even analysis
  • Profit modeling
  • Limitations of break- even analysis

Day 2

Discounted cash flow (DCF)

  • The importance of the timing of cash flows
  • Future values
  • Present values
  • Loan payments and valuation of annuities

Capital investment appraisal

  • Methods for evaluating capital projects
  • Payback
  • Net present value
  • Internal rate of return
  • Discounted payback

Capital budgeting

  • Capital rationing
  • Ranking investment projects
  • Inflation and investment
  • Using expected values and standard deviations to make decisions

Day 3

Financial structure

  • Cost of debt
  • Cost of equity
  • Weighted average cost of capital (WACC)
  • Optimal capital structure

Costing

  • Fixed costs, variable costs, and overheads
  • Overhead allocation, absorption and the use of activity based costing (ABC)
  • Expenses versus inventory (stock valuation)
  • Contribution compared with profit

Decision-Making

  • Make versus buy decisions
  • Shut-down or contribution decisions
  • Product mix decisions and limiting factors
  • Decisions trees

Day 4

Budgeting

  • Purposes of budgeting
  • The budget process
  • Activity based budgeting
  • Uncertainty and risk – worst and best outcomes
  • Maximin and minimax regret rules
  • Motivation and behavioural aspects of budgeting
  • Problems in budgeting

Budgetary control

  • Organisational and accounting control systems
  • Standard costing
  • Flexed budgets
  • Variance analysis
  • Types of variances and the reasons they occur
  • Planning and operational variances

 Day 5

Working capital management and cash improvement

  • Working capital and working capital requirement
  • Managing working capital
  • Cash improvement techniques
  • Cash management and the banking facilities

Business valuation

  • Types of valuation methods
  • Stock market valuation
  • Net assets valuation
  • Capitalised  earnings valuation
  • P/E ratio valuation
  • Gordon growth model valuation
  • DCF valuation

 

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