Finance for Executives

Today, more than ever, business executives find themselves grappling with complex financial issues in addition to operational issues. Financial acumen is quickly becoming a key competency for success in today's increasingly competitive business world. This course is designed to quickly provide senior executives with the financial skills they need to gain competitive advantage. Participants will learn how to analyze financial information to quickly spot strengths, weaknesses, and opportunities for improving financial performance. The course begins with an overview of accounting & financial reporting, transitions into analysis of financial performance, and concludes with strategies for enhancing profitability and enterprise value. Teaching methods employed include group discussions of financial issues currently in the news, short examples, and detailed case problems for analysis and decision making.

No sessions currently available. Contact client services to get the next available date.
Chief executives, managing directors, division managers, senior advisors, consultants, and others responsible for managing corporate financial resources
No advance preparation required.
Students will be able to:
  • Strengthen the quality of their communications with senior financial professionals
  • Describe assumptions & limitations inherent in a company's financial statements
  • Describe how today's key financial issues affect a company's reported profitability
  • Quickly identify strengths & weaknesses in a company's financial performance
  • Use profitability analysis to make better operating decisions
  • Use capital budgeting tools to make better capital investment decisions
  • Assess effectiveness of hedging policies on a company's financial performance
  • Manage the impact of key drivers affecting a company's stock price
  • Use relevant financial information to make better merger & acquisition decisions
  • Evaluate the appropriateness of a company’s capital structure
Day One - External perspective: View from the outside
Keeping score: rules of accounting
  • The language of business
  • Understanding financial statements
  • Quality of earnings analysis
  • Asset valuation issues
  • Liability recognition issues
  • Case problem: off-balance sheet analysis

Analyzing results: financial ratios

  • Liquidity & cash flow: how much is enough?
  • Solvency, debt & credit risk analysis
  • Rate of return analysis
  • Capital structure analysis
  • Assessing financial performance using DuPont analysis
  • Case problem: peer company analysis

Day Two - Internal perspective: View from the inside
Cost structure analysis: profitability analysis
  • Internal vs. external financial reporting
  • Fixed vs. variable costs
  • Cost-volume-profit analysis
  • Marginal cost analysis
  • Impact of cost structure on profitability
  • Case problem: determining the optimal cost structure

Capital budgeting analysis: justifying requests for capital

  • Determining the company's cost of capital
  • Payback analysis
  • Accounting rate of return analysis
  • Internal rate of return analysis
  • Net present value analysis
  • Case problem: capital rationing decisions

Day Three - The ultimate goal: maximizing enterprise value
Derivatives & hedging: using financial products to manage financial risk
  • Commonly-used derivatives
  • Hedging price risk
  • Hedging credit risk
  • Hedging interest rate risk
  • Hedging foreign exchange risk
  • Case problem: impact of hedging policy on reported profits

Maximizing shareholder value: what makes stock prices rise (or fall)?

  • Business model analysis
  • Economic vs. accounting value
  • Fundamental vs. technical analysis
  • Impact of mergers & acquisitions
  • Forecasting future stock prices
  • Case problem: business acquisition decisions

Lunch included for all students taking day classes.