Finance for Nonfinancial Managers MD271
This hands-on, 2-day workshop provides participants the basic concepts of financial management and analysis using case studies to help understand their firm's position within an industry, and to relate business strategy and finance. The program utilizes actual financial statements from different industries to analyze the capital structure of the firm, to calculate financial ratios, and to understand the life-cycle of the firm and its financial performance. We will use a spreadsheet to model the effects of various changes in revenues, expenses, assets, and liabilities.
The course will also review the corporate proxy statement to understand governance issues, corporate ownership structures, and incentives provided by executive compensation plans. Participants will be expected to do some work in advance of the class, including readings and preparing two case studies.
Participants in this workshop will learn to:
- Analyze a firm's financial performance in the context of the relevant industry
- Understand key financial and accounting terms and principles
- Explain the relationship between the major components of financial statements
- Calculate and interpret key financial ratios such as return on equity, return run on assets, debt/leverage ratios, current ratio, and others
- Appreciate the financial and strategic differences between high-growth firms and firms which are in decline
- Income Statement – operating margins, return on equity, effect of taxes and extraordinary items, EBITDA and changes in net income
- Balance Sheet – Use of assets, liabilities, stock issuance and buybacks, changes to earnings per share, liquidity ratios
- Cash Flow – the cash cycle, importance of cash management, short-term financing mechanisms
- Proxy Statements – Understanding the interaction of executive compensation and financial performance and the ownership of the firm
- Debt financing, coverage ratios, bond ratings
Who Will Benefit
Human resource professionals, managers, supervisors, and professionals with limited knowledge of accounting and finance who want to gain a broad understanding of how firms are financed, how their financial performance is measured, and how certain corporate and financial structures influence their decisions.
Joe E. Grasso, Associate Dean of Finance, Administration and Corporate Relations, Cornell's School of Industrial and Labor Relations, has 25 years of financial and managerial experience in the private, public, and non-profit sectors. While working in higher education, he has served as Colgate University's Director of Budget, Institutional Research and Planning; VP of Finance and Administration at Allegheny College; Dean for Planning and Operations at the University of Virginia's College of Arts and Sciences; VP of Administration at Washington and Lee University; and Cornell University's Associate Dean- Finance, Administration, Corporate Relations.