Financial Acumen for Non-Financial Managers

Go to Course: https://www.coursera.org/learn/finance-healthcare-managers

Introduction

### Course Review: Financial Acumen for Non-Financial Managers **Overview** In today’s competitive business landscape, a solid understanding of financial principles is vital for managers who do not come from a finance background. However, many professionals find themselves overwhelmed by financial jargon and complex statements. To bridge this gap, Coursera offers the course **"Financial Acumen for Non-Financial Managers,"** designed by renowned professors Rick Lambert and Chris Ittner from the Wharton School. This course empowers non-financial managers with the knowledge and skills needed to interpret financial data, making it an invaluable addition to any manager's toolkit. **What You'll Learn** The course provides a structured curriculum that spans four comprehensive modules, each targeting specific aspects of financial understanding: 1. **Module 1: Introduction, Balance Sheet, and Income Statement** - This foundational module introduces financial reporting and income statements, covering essential concepts like assets, liabilities, and shareholders’ equity. Learners will analyze real-world financial statements and craft their own income statements. This foundational knowledge sets the stage for understanding how financial documents interlink. 2. **Module 2: Cash Flow Statement** - This module delves into cash flow, teaching students how to categorize business activities and create cash flow statements using both direct and indirect methods. By analyzing examples, learners will come away with practical skills in cash management, which is crucial for any organization’s financial health. 3. **Module 3: Financial Statement Analysis** - Participants will explore a systematic approach to financial analysis, focusing on various ratios and profitability measures like Earnings Per Share (EPS) and Return on Equity (ROE). This module equips learners with the analytical tools needed to assess the financial performance and identify potential risks within their organizations. 4. **Module 4: Linking Non-Financial Metrics to Financial Performance** - Understanding how non-financial measures correlate with financial outcomes is the focus of this final module. Learners will investigate which non-financial metrics are key drivers of success and how to use predictive analytics effectively. This knowledge is crucial for setting performance targets that align with financial objectives. **Why Take This Course?** 1. **Expert Instruction**: Learn from professors with profound expertise in financial management from one of the world’s leading business schools. 2. **Practical Skills**: The course emphasizes practical applications of financial concepts, ensuring you can use what you learn directly in your managerial role. 3. **Accessible Content**: The course is designed for individuals without a finance background, making it approachable and digestible. No prior financial knowledge is required. 4. **Flexible Learning**: Offered on Coursera, you can learn at your own pace, balancing your professional commitments while gaining new skills. 5. **Networking Opportunities**: Engaging with peers from diverse backgrounds provides a valuable opportunity for collaboration and sharing insights. **Recommendation** For anyone in a management position aiming to enhance their financial literacy, **"Financial Acumen for Non-Financial Managers"** is an essential course to consider. Whether you're a project manager, team leader, or involved in operational roles, this course will empower you to make informed decisions based on financial data. It successfully demystifies finance, linking theoretical concepts to practical outcomes, and equips you with the tools necessary for contributing to your organization’s financial strategy. By the end of this course, you will not only understand financial statements but also how to connect these insights with overarching business strategies. The knowledge gained here will enable you to participate in discussions about financial performance more confidently and make decisions that align with your organization’s financial goals. In conclusion, this course is a highly recommended investment in your professional development, equipping you with skills that are crucial in any managerial role. Enroll today and start your journey toward financial acumen!

Syllabus

Module 1: Introduction, Balance Sheet and Income Statement

This module was designed to give you a foundational overview of financial reporting and income statements. You’ll identify and analyze balance sheet equations and its key components such as assets, liabilities, and shareholders’ equity. Through examining a sample real-world financial statement, you’ll learn how to calculate income, revenue, and expenses transactions, and see how the income statement is linked to changes in the balance sheet. By the end of this module, you’ll have a better understanding of the key components in financial reporting and learn how to craft an accurate income statement for your organization.

In this module, you’ll examine cash flow statements further, and take a closer look at methods of creating cash flow statements. Using your understanding of financial reporting, you’ll be able to classify different business activities into separate categories such as operating, investing, and financing activities. Through analyzing the real-world financial statement from the previous module, you’ll learn about both direct and indirect methods of creating cash flow statements. By the end of this module, you’ll be able to differentiate between various business activities and effectively utilize both direct and indirect methods of creating cash flow statements for your organization.

In this module, you’ll examine a systematic approach to ratio analysis and other common tools of financial statement analysis. You’ll develop an understanding of ratios and liquidity measures so you can accurately assess risk within your organization’s financial activities. You’ll discover different approaches to profitability measures such as Earnings Per Share (EPS), Return on Equity (ROE), and the Dupont Analysis. You will be able to match Return on Assets (ROA) to various types of companies and gain a better understanding of the drivers of ROA. Then, you’ll explore the concepts of sales revenue and different qualities of earnings. By the end of this module, you’ll understand the theoretical basis behind ratio analysis, and be able to employ different ratio analyses and accurately calculate profitability measures for your organization.

In this module, you’ll discover how to determine which non-financial performance measures predict financial results through asking these fundamental questions: Of the hundreds of non-financial measures, which are the key drivers of financial success? How do you rank or weight non-financial measures which don’t share a common denominator? And what performance targets are desirable? You’ll examine comprehensive examples of how companies have used accounting data to show how investments in non-financial dimensions pay off in the future and important organizational issues that commonly arise using these models. By the end of this module, you’ll know how predictive analytics can be used to determine what you should be measuring, how to weight different performance measures when trying to analyze potential financial results, how to make trade-offs between short-term and long-term objectives, and how to set performance targets for optimal financial performance.