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FINANCE FOR NON-FINANCE

FINANCEPROGRAMS

OVERVIEW

Finance is the language of business. Like any other language, it has its own terms and rules. To understand how to interpret and use the information accounting provides, you must first understand this language. Understanding the basic concepts of finance is essential to success in business. Businesses use this information for planning and budgeting and for making decisions about borrowing and investing. Overall, finance and accounting aid businesses in the process of making better decisions. Today, every employee needs to be more commercially aware more than ever before. Even if they do not have to manage budgets or finances themselves as part of their roles, they still need to understand about the financials of a company, what it all means, and the impact of their actions on the bottom line.

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DURATION

3 Full Days

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KEY MODULES

1- UNDERSTANDING BASIC FINANCE

• The Need for accounting & finance

• Accounting Vs. Finance

• Finance Function

• Managerial Finance Function

• Activities of Financial Manager

• Basic Finance Concepts• Capital, Debt Capital, Equity

Capital• Equity Securities, Debt Securities

• Basic Finance Principles

2- FINANCIAL STATEMENTS

• Financial Statements and Accounting

• The Balance Sheet and Its components

• What is the balance sheet?• The balance sheet equation • The components of the balance

sheet• Samples of Balance Sheets

• The Income Statement and Its components

• What is the Income Statement?• The Income Statement equation • The components of the Income

Statement• Samples of the Income

Statement

• The Cash Flow Statement and Its components

• What is the Cash Flow?• The Cash Flow equation • The components of the Cash

Flow• Samples of the Cash Flow

• The Relationship between the statements

3- FINANCIAL RATIOS

• Liquidity Ratios• Current Ratio • Quick (Acid-test) Ratio

• Debt Ratios• Time Interest Earned Ratio• Credit Ratio (or debt-to-income

ratio)

• Profitability Ratios• Gross Profit Margin• Operating Profit Margin• Net Profit Margin

• Activity Ratios• Inventory Turnover• Total Asset Turnover• Average Collection Period• Average Payment Period

• Market Rations• Price / Earnings Ratio• Market / Book Ratio (M/B Ratio):

• Financial Health of The Company

FINANCE FOR NON-FINANCE

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FINANCE FOR NON-FINANCE

LEARNING OUTCOMES

After finalizing this course Trainees will be able to:

• Understand the cost measurement techniques

• Conduct job and process costing

• Understand the cost behavior and estimation tools

• Construct master budget

• Analyze different cost variances