Business Finance Fundamentals For Everyone
117 minutes of course content
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Course Description
This course provides a 360 degree perspective on Business Finance to professionals who may not necessarily have a Finance background. Having a fundamental view of how financial statements of companies are created, how to analyze them to assess company performance and how to estimate the business valuation of a company can be very useful to business executives to tie up their team efforts to the overall business performance of the company.
In this course, we delve into 3 main aspects/modules of Business Finance:
- Financial Accounting
- Financial Performance Analysis
- Business Valuation
In the first module, we look at the key financial statements any business is required to prepare. We then go on to see how different types of business transactions are recorded in the accounting statements of any company. This a real fun module where you see the different financial statements are all integrated with one another in the practical world.
In the second module, we use a scorecard framework to analyze how to assess and evaluate the business performance of any company. We compare 4 different companies to define the best performing company among them. We break down company performance in two broad buckets - operating and financing. We then show you how to calculate some key metrics for both these parameters individually. Finally, we rank companies on each of the different metrics to find the winner.
Finally, in the 3rd module, we look at the different life-cycle stages of a company and how to value any company in each of these company stages. We look at 3 different business valuation approaches - negotiation approach, multiples approach and discounted cash flows based approach. To make it real, we add some numbers to each of the methodology to show you how you can do it yourself.
What are the requirements?
- None. We teach everything from scratch.
After taking this course, you will be able to:
- Participate pro-actively in Finance based meetings
- Benchmark the performance of 2 companies
- Strategic thinking in Business and Finance
- Read between the lines the Financial Statements of any company
- Link business decisions to company valuation
- Develop a Business acumen
This course is for professionals within the following business functions:
- Non-finance executives
- Business Managers
- Entrepreneurs
- Founders
- Sales Executives
- Operations Executives
- Finance Executives
- CEOs
- CFOs
- Students
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Course overview - 5 Minutes
- Meet your instructor
- What will you learn in this course?
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Module 1: Financial Accounting Fundamentals - 37 Minutes
- What will we learn in this module?
- What is Accounting?
- Why do we need to do Accounting?
- Typical Income Statement
- Typical Balance Sheet
- Illustration for this module
- Transaction 1
- Transaction 2
- Transaction 3
- Transaction 4
- Transaction 5
- Transaction 6
- Transaction 7
- Transaction 8
- Transaction 9
- Transaction 10
- End of module 1: Quick recap
- Please provide us your feedback
-
Module 2: Financial Performance Analysis - 40 Minutes
- What will we learn in this module?
- What is Financial Performance Analysis?
- How to measure company performance?
- What are the parameters to measure performance?
- Operating performance metric - Margins
- Operating performance metric - ROIC
- Operating performance metric - Turnover
- Operating performance metric - Growth
- Financing performance metric - Leverage
- Financing performance metric - Leverage
- Financing performance metric - Liquidity
- Financing performance metric - Liquidity
- Quick recap of the module thus far
- Illustration for this module
- What is an Annual Report?
- Financial statements for Alpha
- Calculating profitability margins for Alpha
- Calculating ROIC for Alpha
- Calculating turnover ratio for Alpha
- Calculating growth metric for Alpha
- Calculating leverage ratio #1 for Alpha
- Calculating leverage ratio #2 for Alpha
- Calculating current ratio for Alpha
- Calculating coverage ratio for Alpha
- Quick recap of the calculation of metrics
- Calculating operating metrics for all companies
- Calculating financing metrics for all companies
- Calculating ranking criteria for companies
- Ranking profitability margins across companies
- Ranking ROIC metric across companies
- Ranking of turnover metric across companies
- Ranking of growth metric across companies
- Ranking of leverage metric across companies
- Ranking of leverage metric #2 across companies
- Ranking of current ratio across companies
- Ranking of coverage ratio across companies
- Choosing the best performing company
- End of module 2: Quick recap
- Please provide us your feedback on the course thus far
-
Module 3: Business Valuation Fundamentals - 35 Minutes
- What will we learn in this module?
- What is valuation?
- Valuation approach depends on the life-stage of the company
- Early stage company valuation
- Illustration: Early stage company valuation
- Illustration: Early stage company valuation (contd.)
- Growth stage company valuation approach
- What is a Sales valuation multiple?
- Illustration: Growth stage company valuation
- Illustration: Growth stage company valuation (contd.)
- Mature stage company valuation approach
- What is Earnings valuation multiple?
- Illustration: Mature stage company valuation
- Illustration: Mature stage company valuation (contd.)
- Discounted Cash Flows approach to valuation
- Illustration: Discounted cash flows valuation approach
- Understanding Free Cash Flows to Firm
- Free Cash Flows (FCF) are calculated for future
- Timing mismatch in FCF
- Finding the Present Value of FCF
- Discounting future cash flows to present value
- Generalization formula for discounting future cash flows
- Discounting the future cash flows in our illustration
- Quick recap of the DCF approach to valuation
- Quick recap of negotiation based valuation approach
- Quick recap of Sales multiples based valuation approach
- Quick recap of Earnings multiples based valuation approach
- Quick recap of DCF valuation approach
- End of module 3: Quick recap
- Please provide us your feedback
About the Expert

Ashish Agarwal