Finance OE Training

November 2009

Outcomes - Students will:• Be comfortable reading Financial Statements at a moderate level

– P&L, Balance Sheet, Cash Flow Statement

• Be able to perform basic analysis of a company’s performance and stability

• Have the ability to identify further analysis and provide insights provide based on their analysis

• Familiar with and have a basic understanding of key accounting principals– Matching Principal– Conservativeism

• Have a basic understanding of Revenue Recognition• Have a basic understanding of Cost Accounting• Perform basic metric calculations to understand a company’s

performance:– Profitability: Profit Margin, Operating Income Margin– Management Effectiveness: ROI, ROE, Inventory Turns, DSO– Valuation: Market Capitalization, P/E ratio

Who is the course for?

• Department heads, continuous improvement specialists, project managers, non-financial professionals who:– Have a need to understand basic Financial principals and

concepts to be effective in their current position– Have recently assumed additional responsibilities who

need to understand Finance and basic financial principals– Are developing and enhancing their business skills and

broadening their relevance to their company

Finance For Non-Financial Professionals• Beginning Finance:

– 3 Day Open Enrollment format – students bring Laptop with Excel– Introduction to Financial Statements

• Overview of P&L, B/S & Cash Flow• Use & purpose of each statement• Overview of income, expenses, assets, liabilities & equity• Frequency of reporting & examples• Key insights

– Introduction to financial Principals• Matching Principal• Accrual Accounting• Capital assets/depreciation & amortization

– Financial Analysis - Beginners’ reading & understanding financial statements• Sources of financial information• Reading example P&Ls, Balance Sheets & cash flow statements• Interpreting key issues• Annual reports/10Ks• Further questions & research

– By the end of the session, students will be able to:• Identify, and read financial statements.• Develop a high level understanding of how the company is performing from the financial statements.• Develop key insights & raise questions about a company’s performance by analyzing financial statements.• Understand the basic concepts of the key financial principals.• Understand the difference between fixed and variable cost, short and long term assets & liabilities.

Finance For Non-Financial Professionals• Intermediate Finance:

– 3 Day Open Enrollment format – students should have attended Beginning Finance, or have a basic understanding of Financial Principals and be able to read & understand Financial Statements. Students should bring Laptop with Excel

– Review Beginning Finance• Review of Financial Statements P&L, B/S & Cash Flow• Financial Principals• Financial Statement Analysis

– Introduction to Budgeting, Productivity, Financial Consolidations, Reserves• Departmental budgeting• Productivity• Financial Consolidations• Reserves

– Introduction to performance metrics• Margin/Margin %• Operating Income/%• Current metric• Turns• EPS• PE ratio• Analysis of company performance

– By the end of the session, students will be able to:• Identify & read basic performance metrics• Perform calculations of basic performance metrics• Perform basic performance analysis based on company financial statements & performance metrics• Develop key insights about a company’s performance by analyzing financial statements

Finance For Non-Financial Professionals• Advanced Finance:

– 3 Day Open Enrollment format – students should have attended Intermediate Finance, or have a basic understanding of Financial Principals, performance metrics, and be able to read & understand Financial Statements. Students should bring Laptop with Excel

– Review Beginning & Intermediate Finance:• Review of Financial Statements P&L, B/S & Cash Flow• Financial Principals• Basic metrics

– Cost Accounting • Material, Labor, Overhead• Standard Costing• Variances

– Introduction to advanced financial concepts:• Cash Flow Management• Inventory Management• Working Capital• Income Taxes, Tax planning, Timing differences• Dividends

– By the end of the session, students will be able to:• Understand the different types of Cash Flow• Perform Cash Flow calculations & develop a Cash Flow Statement• Understand the concepts of Cash Flow Management• Understand Cost Accounting basics• Calculate Cost Of Goods Sold & Ending Inventory• Calculate Working Capital and understand the importance of Working Capital