Financial Acumen: Roadmap to Business Success
5 DaysFinancial Acumen: Roadmap to Business Success - Virtual Learning
Course Methodology
The course uses a mix of interactive techniques, such as brief presentations by the consultant, case studies, hands-on applications of analysis using Excel and group exercises to apply knowledge acquired throughout the course.
Course Objectives
By the end of the course, participants will be able to:
- Define where and how their company competes and identify which competitive advantages generate shareholder value
- Interpret how macroeconomic conditions and industry specific situations can impact their company’s profitability and performance
- List the components of the basic financial statements
- Analyze the ability of the company to survive over the short run and long run, and exercise commercial decisions that can improve their company’s performance
- Apply cost concepts to make informed decisions that are strategically and financially fit for the company
Target Audience
Managers, supervisors and staff from any function including finance who need to improve their understanding and usage of financial information.
Target Competencies
- Strategy identification
- Economic analysis
- Industry analysis
- Understanding financial statements
- Financial analysis
- Working capital management
- Financial decision making
- Managerial decision making
Course Outline
- Strategy: value creation and value generation
- Identifying the business stakeholders
- Shareholders’ value: definition and dynamics
- Corporate strategy: where and how?
- Competitive advantages: winning over rivals
- Types of competitive advantage
- How competitive advantages drive company’s profitability
- Are all strengths competitive advantage?
- Ryanair case: strategy in low-fare airline
- Basics of economic and industry analysis
- Top-down approach for analysis
- Macroeconomic factors: are you operating in a sustainable country?
- Indicators of GDP, unemployment rates, inflation, exchange rates and interest rates
- Deficit-to-GDP, debt-to-GDP and GDP growth rates
- Industry analysis: are you operating in an attractive industry?
- Michael Porter's five forces shaping industry's long term profitability
- Power of suppliers
- Power of customers
- Rivalry between competitors
- Availability of substitutes
- Threats of new entrants: assessing barriers
- Michael Porter's five forces shaping industry's long term profitability
- Starbucks, Apple Inc., Nike and McDonald’s cases
- Mastering the financial statements: a prerequisite for decision making
- Accounting versus finance: the past versus future
- Income statement: indicator of performance
- Revenue and expense recognition
- Fixed and variable costs
- Direct and indirect costs
- Balance sheet: indicator of financial position
- Measurement and classification of components
- Three limitations of balance sheet
- Statement of changes in owners’ equity
- Cash flow statement:
- Operating, investing, and financing activities
- Reading and interpreting cash flow
- Cash-flow model for start-up phase
- Cash-flow model for supernatural growth phase
- Cash-flow model for mature growth phase
- Financial analysis: a hands-on approach
- Analysis of publicly listed companies: a hands-on approach using Excel
- Common size analysis to improve comparability
- Calculating trends and growth patterns
- Liquidity analysis
- What is the suitable level of liquidity?
- Current, quick, and cash ratios
- Asset management and activity ratios
- Days to collect receivables: KPI for sales and credit departments
- Days to sell inventory: KPI for supply chain and sales departments
- Days to settle payables: KPI for procurement department
- What can go wrong: managing gaps in cash collection
- Financing structure and risk
- Why using loans can be good to your business?
- Measuring shareholders’ required return on investment
- Calculating the economic added value, or lost value
- Debt, equity, and times interest earned ratios
- Profitability analysis
- Net profit margin, operating profit margin, gross profit margin, return on assets
- Return on equity: its impact on your bonus
- Analysis of publicly listed companies: a hands-on approach using Excel
- Financially-informed decisions: the winning recipe
- Cost-structure analysis: Do you need a business-model redesign?
- Fixed costs and variable costs behavior
- Operating leverage: how sensitive is your business to change in sales
- Margin of safety: a measure of risk
- Product-line analysis:
- Calculating contribution margin from units sold
- Breakeven point: minimum quantity to avoid losses
- Target income: quantity needed to achieve a certain profit
- Identifying relevant costs for decision making
- Add or drop a business segment
- Allocating cost by segment
- Keeping projects with highest contribution
- Managing scarce resources
- Outsourcing decisions: make or buy a good or service
- Looking at quantitative and qualitative factors
- Special order pricing decisions
- Pricing techniques
- Target costing
- Cost-plus pricing
- Value pricing
- Price war or coopetition?
- Cost-structure analysis: Do you need a business-model redesign?
Mawred Certificate
Mawred Certificate courses by Al mawred Training & Consulting are designed for those willing to challenge themselves and go the extra distance...
Whats Makes EuroDXB Institute Courses Unique?
EuroDXB Institute is your gateway to professional growth, with over 20 years of experience turning potential into success. Each year, we deliver over 1,000 courses in 50+ countries, earning a stellar 98% satisfaction rate. Trusted by global giants like BP, the United Nations, and HSBC, we partner with top certification bodies to provide career-focused training that empowers individuals and drives organizational breakthroughs. Our mission? To transform the way professionals learn and grow in today’s fast-changing industries. Through expert insights, cutting-edge methods, and hands-on approaches, we equip you with the skills and confidence to tackle challenges, seize opportunities, and thrive in your career.
Led by a passionate leadership team and supported by a network of world-class trainers, EuroDXB Institute connects professionals worldwide with life-changing opportunities. We are committed to excellence, ensuring every participant leaves with the tools, expertise, and confidence to conquer an ever-evolving world.
Virtual Schedule
Classroom Schedule
We can customize this training course for you!
At Al Mawred, we offer customizable courses designed to fit your specific needs. Whether it's refining technical practices or enhancing leadership and management skills, we tailor our programs to meet your unique goals and challenges. Let us create a training solution that delivers real results for your team.
Request for In-House TrainingReady to advance your career?
Join thousands of professionals who have already enhanced their skills with EuroDXB Institute.
Register for this course