This program focuses on the key concepts and techniques of strategic financial management, which has as its key aim the creation of corporate value over the long run. Financial management relies crucially on two principal activities which are extensively examined in the program: one is the investment decision, that is, putting productive assets on the balance sheet; and two, the financing decision, which is concerned with optimal capital structuring on the liability side, that is, the use of debt in relation to equity. This course is crucial for all financial managers who require a rigorous understanding of how corporate value creation is linked to the timing and riskiness of cash flows and the cost of capital. The participant will gain practical insight into the management of working capital, the performance of financial analysis, including an examination of the relevant metrics and value drivers in managing the business, as well as consideration of the sources of long-term financing to the firm. Attention is also given to financial distress and corporate restructuring issues as well as the development of strategic business plans. The course develops key skill competencies through the application of sound theoretical content within a practical, real-life inspired case-study based environment.
An understanding of how the IFRS financial statements are put together and their limitations in business and investment analysis
A systematic approach of analyzing financial statements and ratio analysis for assessing business and investment opportunities
Effective use of investment appraisal screening and evaluation tools (payback/DCF/ IRR/ MIRR)
Broader understanding of current and traditional sources of long-term financing instruments
Greater insights into using effective advocacy documents to pitch your investment and business conclusions
Online courses from Columbia University Columbia University is one of the world's most important centers of research and at the same time a distinctive and distinguished learning environment for undergraduates and graduate students in many scholarly and professional fields. The University recognizes the importance of its location in New York City and seeks to link its research and teaching to the vast resources of a great metropolis. Teachers College, Columbia University’s affiliate graduate school of education, offers programs in education, health, leadership, and psychology that are perennially ranked among the nation’s best. Visit the TeachersCollegeX course schedule for what's available now. For more than 250 years, Columbia has been a leader in higher education in the nation and around the world. At the core of our wide range of academic inquiry is the commitment to attract and engage the best minds in pursuit of greater human understanding, pioneering new discoveries and service to society.
The Quality of Corporate Financial Information and Accounting Concepts → Overview of a typical structure of an annual report and its limitations → Financial accounting standards and audit opinions → The distinction between financial accounting and management accounting → Key components of financial statements • Balance sheet • Income statement • Cash flow statement Exercise
Working Capital and Liquidity Issues Components of working capital and calculations → The link between working capital and financial statements → Management interpretation of ratios as a performance tool → Peer group benchmarking and operational implications → Liquidity measurement / management and free cash flows → The use and abuse of EBITDA → Funding strategies – aggressive or a conservative approach Exercise
A Review of Key Financial Ratios and their Analysis → Detailed examination of financial ratios linking financial statements and practical realities of the business • Profitability and return ratios • Short term solvency and liquidity ratios • Long term solvency and stability ratios • Information through comparison → DuPont Framework for Assessing Performance • Earnings and efficiency in earnings • Ability to turn assets into profit • Financial leverage • Finding the red flags • Benchmarking - tracking peer performance Exercise
Long Run (Strategic) Investment Decisions and Investment Analysis → Importance of long-term investment decisions → How can we be sure we are creating value? → The importance of management incentives and agency risks • Return on Investment • Return on Capital Employed • Residual Income measures → Developing a conceptual distinction between value creation and destruction → Techniques of screening projects and evaluating investment alternatives → Cash-based versus profit-based assessments -- strengths and weaknesses → How to determine free cash flows and how they are used • Free cash flow to equity and to all capital providers Exercise
Investment and Project Analysis Methodologies → Capital investment appraisal – relevant costs and discounted cash flows → Evaluating investment alternatives with net present value (NPV) → Understanding the including how to layout the calculations internal rate of return (IRR) method and its cousin, the modified internal rate of return (MIRR) → Other issues relating to investment analysis • Multicurrency cash flows • The role of expected values (EV) in NPV calculations • Applying sensitivity analysis to cash flow models Exercise
Determining the Cost of Capital → Understanding company cost of capital and relationship to cash flow risks → Demystifying risk betas and the capital asset pricing model (CAPM) • The building blocks of systematic and unsystematic risk • Distinguishing between financial risk and business risk → Developing a weighted average cost of capital (WACC) for a business → Modigliani and Miller’s capital structure theory – the role of debt and taxes → Impact of dividend policy and its relevance to corporate value Exercise
→ Corporate Valuations methodologies and approaches • Earnings, assets and cash-based methods • Dividend valuation model, price/ earnings (PE) and EBITA multiples → Options based valuations – more complex valuation exercises Exercise
Analyzing and Assessing Different Sources of Finance Evaluating corporate long term funding strategies and sourcing of finance → Identifying traditional financing sources and analyzing them → Using quasi debt structures such as convertible loans: pros and cons → Equity finance from public and private markets (venture capital) → Effective use of rights issues directed at current shareholders → Innovative types of financing (crowd funding) Exercise
Who Should Attend?
This highly practical and interactive course has been specifically designed for
This course has been specifically designed for the benefit of:
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or firstname.lastname@example.org.
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.