Finance Acumen
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
- Drivers for stock prices
- 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
- Market capitalization = stock price x No of shares outstanding
- Fundamentals of financial statements