Understanding Financial Statements

Key Financial Statements:

• Balance Sheet: Understand assets, liabilities, and equity.
• Income Statement: Analyze revenues, expenses, and profits.
• Cash Flow Statement: Track cash inflow and outflow.
• Interpreting for Decision Making: Learn how to read and interpret these statements to make informed decisions

Course Content

Financial Analysis Techniques

• Profit and Loss Analysis: Techniques to analyze Income Statements.
• Cash Flow Analysis and Forecasting: Project future cash flows.
• Key Ratios: Utilize ratios for performance assessment.
• Break-even and ROI: Calculate break-even points and return on investment.
• Case studies –
• Project Management: Budgeting for project costs and analyzing ROI.
• Using ratios to assess company health and performance.

Practical Application in Projects

• Project Budgeting: Apply financial concepts in project budgeting.
• Financial Health of Projects: Make decisions based on project’s financial health.
• Risk Assessment: Financial risk analysis and mitigation.
• Case Studies: real-world examples of financial decision-making in projects.
• Cases:
• Sales & Marketing: Budget allocation for marketing campaigns.
• Finance: project investment analysis and risk management.

Financial decision-making

• Financial Decisions: Integrate financial analysis in strategy.
• Long-term Planning: Financial planning for future growth.
• Resource Allocation: Effective management of financial resources.
• Scenario Planning: Forecasting and preparing for future financial scenarios.
• Examples:
• HR: Strategic workforce planning based on financial projections.
• Supply Chain: Long-term procurement strategy and cost management.

Financial Measurement Tools and Techniques

• Tips for scanning any financial report and zeroing in on the pertinent numbers
• Calculating return on investment (ROI)
• Key financial indicators that will tell you if your organization is on the right track
• Using break-even analysis, forecasting and other  financial tools to make informed decisions
• Valuable questions to ask before making any decision based on financial statement numbers
• Important ratios that every nonfinancial manager should understand