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Financial Manager Training Program ( Powerpoint)

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inancial Manager Training Program – Narrative Summary

The Financial Manager Training Program is an 8-week comprehensive course designed to equip participants with the necessary skills and knowledge to excel in financial management roles. This program covers key areas, ranging from the fundamentals of financial management to advanced financial decision-making strategies.

The course begins with an introduction to financial management, emphasizing the importance of balancing profitability and wealth maximization while considering ethical responsibilities. Participants will explore the roles and responsibilities of financial managers, setting the foundation for effective financial decision-making.

The second week delves into financial statement analysis, focusing on how to interpret balance sheets, income statements, and cash flow statements. Participants will learn to perform ratio analysis and assess trends, gaining insights into a company’s financial health and performance.

In week three, the program introduces financial planning and budgeting techniques, teaching participants how to develop operating, capital, and cash budgets. They will also explore variance analysis to monitor financial performance and align actual results with planned outcomes.

The fourth week focuses on the time value of money (TVM) and capital budgeting. Participants will practice using techniques like net present value (NPV), internal rate of return (IRR), and payback periods to evaluate investment opportunities. The module emphasizes the role of risk analysis, using tools such as sensitivity and scenario analysis.

In week five, the course shifts to working capital management, covering cash, inventory, and receivables management strategies. The importance of the working capital cycle is highlighted, along with short-term financing options like trade credit and commercial paper.

Participants will explore capital structure decisions in week six, learning to assess the trade-offs between debt and equity financing. The concept of leverage, its impact on profitability and risk, and how to calculate the cost of capital (WACC) will be key focus areas.

In week seven, the program covers dividend policies and long-term financing options. Participants will understand the theories behind dividend policies and explore mechanisms such as stock dividends and buybacks. The module also provides insights into raising capital through equity, bonds, and private equity financing.

The final week introduces participants to financial risk management and the role of financial markets. They will learn to manage risks using derivatives like options, futures, and swaps, and understand how capital and money markets support businesses in raising funds.

To culminate the program, participants will apply their knowledge in a final project. They will perform a comprehensive financial analysis of a hypothetical company, including forecasting, budgeting, capital structuring, and risk management strategies. This hands-on project will demonstrate the real-world application of financial management principles.

Throughout the course, participants will engage in quizzes, assignments, and a mid-term exam, ensuring continuous learning and assessment. The program concludes with the final project presentation, allowing participants to showcase their financial expertise and strategic thinking.

This course is designed to provide both theoretical insights and practical tools, preparing participants to take on financial management roles with confidence and competence.

Category:

Course Title: Financial Manager Training Program

Course Duration: 8 weeks (can be adjusted)


Week 1: Introduction to Financial Management

  • 1.1 Overview of Financial Management
    • Definition and Importance of Financial Management
    • Key Roles and Responsibilities of a Financial Manager
  • 1.2 Goals of Financial Management
    • Profit Maximization vs. Wealth Maximization
    • Ethical Considerations in Financial Management
  • 1.3 Financial Management Framework
    • Key Financial Decisions: Investment, Financing, and Dividend Decisions

Week 2: Financial Statements and Analysis

  • 2.1 Understanding Financial Statements
    • Balance Sheet, Income Statement, and Cash Flow Statement
    • The Relationship between Financial Statements
  • 2.2 Financial Ratios and Analysis
    • Liquidity Ratios, Profitability Ratios, Solvency Ratios, and Efficiency Ratios
    • Ratio Analysis and Interpretation for Decision-Making
  • 2.3 Trend and Vertical/Horizontal Analysis
    • Analyzing Financial Trends and Patterns Over Time

Week 3: Financial Planning and Budgeting

  • 3.1 Financial Planning Process
    • Short-Term vs. Long-Term Financial Planning
    • Forecasting Financial Needs
  • 3.2 Types of Budgets
    • Operating Budget, Capital Budget, Cash Budget, and Master Budget
    • Budgeting Process and Techniques (Zero-Based Budgeting, Incremental Budgeting)
  • 3.3 Variance Analysis
    • Monitoring Budget Performance and Variance Analysis

Week 4: Time Value of Money and Capital Budgeting

  • 4.1 Time Value of Money (TVM) Concepts
    • Present Value (PV) and Future Value (FV) Calculations
    • Annuities and Perpetuities
  • 4.2 Capital Budgeting Techniques
    • Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Profitability Index
    • Application of Capital Budgeting in Investment Decisions
  • 4.3 Risk Analysis in Capital Budgeting
    • Sensitivity Analysis, Scenario Analysis, and Monte Carlo Simulation

Week 5: Working Capital Management

  • 5.1 Components of Working Capital
    • Current Assets and Current Liabilities Management
    • The Working Capital Cycle
  • 5.2 Managing Cash, Inventory, and Receivables
    • Cash Management Techniques and Models
    • Inventory Management (EOQ, Just-in-Time, and ABC Analysis)
    • Credit Management and Accounts Receivable Control
  • 5.3 Short-Term Financing Options
    • Sources of Short-Term Financing: Bank Overdraft, Commercial Paper, Trade Credit

Week 6: Financing and Capital Structure Decisions

  • 6.1 Overview of Capital Structure
    • Debt vs. Equity Financing
    • Optimal Capital Structure Theories
  • 6.2 Cost of Capital
    • Calculating the Cost of Debt, Cost of Equity (CAPM), and Weighted Average Cost of Capital (WACC)
  • 6.3 Leverage and Its Implications
    • Operating Leverage and Financial Leverage
    • Impact of Leverage on Earnings and Risk

Week 7: Dividend Policy and Long-Term Financing

  • 7.1 Dividend Policy Theories
    • Dividend Irrelevance Theory (Modigliani and Miller)
    • Bird-in-the-Hand Theory, Signaling Theory
  • 7.2 Types of Dividends and Distribution Mechanisms
    • Cash Dividends, Stock Dividends, Stock Repurchases
  • 7.3 Sources of Long-Term Financing
    • Equity Financing: IPOs, SEOs, and Private Equity
    • Debt Financing: Bonds, Term Loans, and Lease Financing

Week 8: Risk Management and Financial Markets

  • 8.1 Risk and Return in Financial Management
    • Types of Financial Risks: Credit Risk, Market Risk, Liquidity Risk, Operational Risk
    • Measuring Risk: Standard Deviation, Beta, Value-at-Risk (VaR)
  • 8.2 Hedging and Derivatives
    • Overview of Financial Derivatives: Options, Futures, and Swaps
    • Using Derivatives for Risk Management and Hedging
  • 8.3 The Role of Financial Markets
    • Structure and Functions of Capital Markets and Money Markets
    • Raising Capital in Financial Markets

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