Finance for Managers

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

Introduction

## Course Review: Finance for Managers on Coursera In today's fast-paced business environment, understanding financial concepts is not just beneficial but essential for effective decision-making. Coursera's **Finance for Managers** course offers an invaluable overview of operational finance tailored for managers looking to deepen their financial acumen. This course equips you with the tools to interpret financial statements, analyze operational metrics, and make informed financing decisions that will ultimately impact the long-term health of your organization. ### Course Overview **Finance for Managers** is designed to demystify the complex world of operational finance. The course emphasizes the significance of financial narratives found within balance sheets and income statements. By unraveling these stories, participants are empowered to make strategic choices regarding current assets, liabilities, and working capital management. The curriculum is structured in a way that facilitates practical learning through real-world case studies, specifically using "Polypanel" as a focal point throughout the lessons. ### Syllabus Breakdown **Week 1: Introduction to Operational Finance** The course begins with an introduction to the fundamentals of operational finance. Through a specific business case, you will learn to analyze a company's performance based on its balance sheet and profit and loss statement. The session poses thought-provoking questions—such as whether a bank should approve a significant loan for the business—encouraging you to think critically about financial data and its implications. **Week 2: Operational Ratios and Forecasting** In the second week, participants delve into operational ratios and forecasting methodologies. You’ll explore the case of Polypanel, focusing on receivables, sales, and payment delays. This section is crucial as it introduces tools like Days of Collection, Days of Inventory, and Days of Payables, which you will learn to use for effective business analysis. By the end of this week, you will have a solid understanding of how to forecast financial health, which is essential for making sound financing decisions. **Week 3: Diagnosis and Action Plan** Week 3 takes a hands-on approach, encouraging participants to diagnose financial issues faced by Polypanel. Topics include Need of Funds for Operations (NFO) and Working Capital (WC), where you will learn to identify financial challenges and develop actionable plans for sustainable growth. This week emphasizes practical skills and critical thinking, equipping managers with the frameworks necessary for assessing and addressing financial health. **Week 4: Advanced Financial Tools and Analysis** The final week integrates all concepts learned, introducing advanced tools like sensitivity analysis and DuPont analysis. This week focuses on assessing sustainable growth, Return on Equity (ROE), and further revisits the concept of NFO. By the conclusion of the course, participants will have a comprehensive understanding of operational finance, armed with the analytical tools that financial professionals utilize to enhance a company's financial standing. ### Course Recommendations **Who Should Take This Course?** I highly recommend **Finance for Managers** to: - Business professionals aspiring to understand the financial dimensions of their roles. - Entrepreneurs looking to navigate their companies' financial landscapes more effectively. - Students pursuing careers in management or finance who wish to supplement their academic knowledge with practical insights. - Anyone interested in improving their financial literacy for personal or professional development. **Conclusion** Overall, **Finance for Managers** on Coursera is a thoughtfully structured course that balances theory and practical application, making it accessible and beneficial for a wide audience. By the end of the course, participants will not only understand the fundamental principles of operational finance but also be able to apply these concepts to real-world scenarios, making informed decisions that can propel their organizations toward success. If you are ready to elevate your finance skills and make a significant impact in your managerial role, consider enrolling in this course today!

Syllabus

Course Overview & Week 1

Welcome to Operational Finance: Finance for Managers. In this course you will learn the basics of operational finance to help you make sound financial decision or to run a robust business! Before you get started with this week's video content, please have a look at the course syllabus. In this first week, we'll discuss what operational finance is all about by looking at a business case. What do the numbers on the Balance Sheet and P&L Statement tell us about its performance and future prospects? If you were a bank, would you approve a half million euro loan for this business? Why or why not? Course objective: To get an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

In week 1, we looked at Polypanel’s Balance Sheet and P&L Statement. In the Balance Sheet, we noted that receivables increased from €188,000 in 2004 to €649,000 in 2007. We left off with the question: Is this difference due to an increase in sales or delays in payments from customers? In week 2, we will introduce operational ratios, the tools we need to disentangle both effects and understand what’s going on below the surface. We will also conduct a forecasting exercise of Polypanel to understand how well it will be positioned to pay back a potential credit line in the future. Objectives: By the end of the session you will understand the different types of operational ratios (Days of Collection, Days of Inventory and Days of Payables) in order to analyze how well a business is performing. You will also learn how to use forecasting to support financing decisions.

By now you have a pretty good grasp of the Polypanel case and the main issues that could impact future financing. This week, it’s time to roll up our sleeves and work out a diagnosis for these issues. We’ll discuss Need of Funds for Operations (NFO) and Working Capital (WC), two concepts that will help us better understand the company’s problems. Finally, with a solid diagnosis we can develop an action plan that will lead to sustainable growth. Objectives: By the end of the session you will have a framework for diagnosing a company’s financial health. You’ll also gain insights into how to develop an action plan to address its problems.

In this final week, we will introduce the final pieces of the puzzle to give you a complete overview of operational finance. We’ll discuss tools like sensitivity analysis that will help you consider the potential outcome of a decision given different variables. In this session we will also look at other crucial concerns for the firm and its shareholders like sustainable growth and ROE (Return On Equity) plus revisit NFO (Need of Funds for Operations) and other topics. Objectives: By the end of this session, you should have a complete overview of the key aspects of operational finance. You will also understand what tools financial professionals use in order to make decisions to strengthen a company’s position.