Finance Acumen: Difference between revisions

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* Compound Interest
* Compound Interest
= DAY 3=
= DAY 3=
*
* COSTING
** Manpower
** Consumables
** Overheads

Revision as of 11:41, 26 June 2021

MEETING STAT

Join Zoom Meeting
https://zoom.us/j/93608785870?pwd=ZDFzY2U2djI2TlloeVdUUFE0L3FoUT09
Meeting ID: 936 0878 5870
Passcode: 855014
  • DATE: 24, 25, 26 JUN 2021
  • Mentor: S Subramanian (Subbu)
  • Multi company participants

Course Structure

  • QUIZ
  • Learning from SW Airlines
    • Cost: food: $6 to 20 cents; Per mile cost: 30 cents
    • Every employee awareness
  • DAY 1:
    • Fundamentals of financial statements
      • Market capitalization = stock price x No of shares outstanding
        • Drivers for stock prices
          • 8% by macro economics (GDP; news, policy; pandemic etc)
          • 31% by Stock market
          • 18% Industry
          • 41% Company specific actions
      • Shareholder expectations
        • Maximise ROI, EPS, Profits, Survival, sales
      • Drivers of Company Performance
        • Growth profit
        • Robust Margins
        • Managing by assets efficiently
      • Shareholder value
        • Shareholder value = Dividend Yield + Price appreciation
        • Return on Invested Capital
          • Share holders view : (ROIC) = Net profit / Invested capital
          • Managers view: Income statement; Balance sheet...
            • Income statement: How much is earned over a period of time (net income)
            • Sales Revenue: Sales and is Realised and Earned (post the delivery)
            • Expenses: When resource is used
            • Income:
            • Revenue : price x volume
            • Balance Sheet: Assets; What we Own & What we Owe (Liabilities, Owners equity, inventory )
            • Cash Flow analysis: At least 6 months cash flow is to be available when income becomes zero
            • Capital MGT is in 8 words: Buy low, Sell high; Collect now; Pay later

DAY 2

  • Incremental Budgeting :
  • Zero based Budgeting
  • Compound Interest

DAY 3

  • COSTING
    • Manpower
    • Consumables
    • Overheads