‘Identifying and maximising Company profitability' is a three Module course
- Module 1 : Has been designed to teach you the essentials for a profitable company, the fundamentals of the Balance Sheet, Income statement and Cash flow and how to determine the cost structure of your products for decision making.
There are 6 videos in this Module -
- Video 1 - 21 minutes - Covers the three types of Capital structure and will teach you the 10 areas that are critical for business success
- Video 2 - 19 minutes - The Balance sheet capital, assets and Income statement. Teaches you about capital required, investment in Fixed and Current assets and how the assets are used in the Income Statement. I will then take you through a 'craft beer company' to show you how to prepare a time and motion model.
- Video 3 - 21 minutes - 'craft beer company' - live example of production, revenue and expenditure flow. The transfer of income statement costs and revenue to the balance sheet as well as the cash flow. This section is critical to your understanding and application of cash going in and out of a business. You will learn why 'back-up' capital is essential
- Video 4 - 31 minutes - Case study on how to determine the fixed and variable costs of a company for decision making purposes. You will learn a simple method of determining the cost of a product for budgeting purposes, cost analysis and profitability assessment
- Video 5 - 19 minutes - Cost analysis under Variable costing for a single and a multiple product company. A simple step by step illustration of how Variable costing works. You will learn the simple skill of determining costs that you can put to work in your company right now
- Video 6 - 24 minutes - Cost analysis under Absorption and Activity Based Costing systems. These two systems are widely used by many companies. You need to know how they work and whether they should be used by your company or not. I will teach you which system to use
You will also receive a set of notes for each of the three modules.
Module 2 runs for 3 hours and is presented in 5 video sessions.
This second Module is an in-depth study on profitability analysis with an emphasis on setting budgets, comparing them to actual results for performance measurement and setting future targets.
I will take you through a multi-product company from budget to actual results and teach you how to determine where the company did well and where it fell short. We will do case studies of 4 different business sectors, identifying the best practice methods of target setting and performance analysis.
I will also teach you how to assess limiting company factors to determine the most profitable product combination. Operating leverage is the measurement of operating risk.
This module will teach you how to calculate operating leverage and assess the risk for a company.
Finally we will deal with strategic planning factors that a company must assess going forward.
Module 3 runs for 3 hours 40 minutes and is presented in 8 video sessions.
The financial statements of a company consist of the Balance sheet, the Income Statement and the Cash-flow statement.
Module 3 will take you through each of the 3 financial statements teaching you how to systematically analyse company information that will give you a complete understanding of the strengths and weaknesses of the operations and the financial risks of any company.
I will also teach you the skills that you require to value a company from a minority and a majority perspective.
Please make use of the notes that I have provided in PDF format.
The first set is on Financial Statement analysis while second set is on Company valuations.
- This course has been designed for Company managers, product managers and accounting staff. A basic understanding of the Balance sheet and Income Statement is required. No formal qualification is required
- A company business model for a production company
- Cost analysis for single and multiple-product companies
- Variable, Absorption and ABC costing for decision making
- Maximising product profitability by changing cost and sales variables - graphic illustrations
- Why contribution is superior to GP %.
- The cash-flow statement
- Maximising variable costing profitability
- Multiple product analysis
- Limiting factors of production
- Operating leverage
- Budgeting and Performance
- Reconciliation of Budget profit to Actual profit
- Profitability analysis of 4 different business sectors
- The Business model and Business cycles
- Operating leverage
- The fundamentals of Finance and Financial risk
- Financial Statement analysis
- The cash flow statement analysis
- Balance sheet analysis
- Financial analysis template
- Company valuations (Free cash flow valuation; Earnings valuation; Dividends valuation)
- Valuation template