Module 1 – Financial Accounts an overview of the accounting information relevant to finance and financial analysis. Why it is useful and where it falls short.  We review the structure and content of the P&L and see how it builds with an Excel-based downloadable exercise. 

Module 2 – Ratios and Key Termshis section shows how, given a P&L and Balance Sheet, you can start to analyse a business from different perspectives: Profitability, Liquidity, Efficiency, Returns and Credit.   The Excel case study also continues.

Module 3 – Return on Capital EmployedOne of the key aspects of analysis is Invested Capital – how much has been invested, where is it invested and what are the returns.  This section takes a very practical look at the idea of capital invested in Operating and Fixed assets and compares how different businesses might give differing results, and why.

Module 4 – Cash and Cash Flowsgoing back to our Accounts case, this section focuses on cash flows rather than P&L and Balance Sheet.  How do they compare? Where are the differences? Of course, a fully debriefed Excel case is part of the learning.

Module 5 – The Time Value of MoneyThis short section on the Time Value of Money will set you up for investment appraisal – but it’s very widely applicable outside that scope too.

Module 6 – Management AccountsWe now get into Management accounts – what they are and why they are used – and it leads us into the realms of budgeting and cost behaviour (the key to a good budget)

Module 7 – Management Accounting and Investment AppraisalNow we now how to create a robust budget, the question is now whether a project – based on projected revenues and costs – is worthwhile. But ‘worthwhile’ isn’t clear cut, and this section looks at the appraisal techniques to help with decision making: to invest or not to invest…?

Module 8 – Business Valuation – We’ve now looked an investment appraisal, and given that a company is just a portfolio of investment decisions playing out, we naturally lead on to how to VALUE an entire business rather than evaluate a single project.  Discounted cash flows holds the key, but there are simpler shortcut methods.

Module 9 – A Balanced Scorecard and summing upNow the journey through the world of finance is almost complete, this final chapter reviews the entire program from a high level to recap and join it all together, and look at a more balanced approach to ‘scoring’ a business.  We look at a real life case where we started the course: Tesco plc.