By the end of this course, you should be able to:
- Understand how economic events affecting a business are quantified and summarized in a company’s financial statements, including its balance sheet, income statement and statement of cash flows
- Be able to analyze a company’s financial performance, benchmark its performance against peers, and determine how a company could improve its future performance
- Evaluate a company’s effectiveness in managing working capital investments in inventory and receivables
- Use financial criteria such as net present value (NPV), internal rate of return (IRR) to evaluate whether capital expenditure projects increase shareholder value
Detailed Course Content
This course focuses on the investment and financing decisions of companies and how outsiders evaluate their financial performance using published financial statements.
The first part of the module centers on introducing corporate financial statements including a balance sheet, an income statement and a statement of cash flows.
The second part of the module discusses how managers evaluate a company’s investments in working capital and capital expenditure projects. And finally, the module discusses how a company raises capital from equity investors and lenders, and how it chooses the right mix of debt and equity to minimize its cost of capital.