Finance Training: Financial Statements, Budgets & Derivatives


Course Delivery

Live Instructor-Led Training

Course Description

The course Financial Statements, Budgets & Derivatives (Finance Training) is a detailed exploration of the big 3 financial statements: The income statement, the balance sheet and the cash flow statement. The course teaches you to read, understand & interpret the financial statements in order to make good financial decisions. The training also includes budget analysis techniques & strategies based on derivatives to hedge risks & manage currencies.

Course Dates and Pricing


Jan 14 - 17, 2025$3,750.00Feb 11 - 14, 2025$3,750.00Mar 11 - 14, 2025$3,750.00Apr 15 - 18, 2025$3,750.00May 13 - 16, 2025$3,750.00Jun 10 - 13, 2025$3,750.00Jul 15 - 18, 2025$3,750.00

Course Outline

Essential Concepts

Overview of Important Financial Concepts
A Tour of Financial Statements
Differentiating Assets and Liabilities
Understanding Cash and Non-Cash Items
The Importance of Capital Budgeting
Using Derivatives to Mitigate Risk
US GAAP vs IFRS: A High Level Overview

The Income Statement

What’s in the Income Statement
Understanding Operating Income
Understanding Cost of Goods Sold
Understanding Net Income
About Operating vs Capital Expenses
A Few Essential Ratios
The Effect of Currency Exchange Rates
Performing Common Size Analysis for Decision Making
The Multiple IRR Problem
The No IRR Problem

The Balance Sheet

Understanding Assets, Liabilities and Equity
Delving into Assets
Delving into Liabilities
Understanding Depreciation and Retained Earnings
A Few Essential Ratios
The Effect of Currency Exchange Rates
Performing Common Size Analysis for Decision Making

Cash Flow and Working Capital Management

Understanding Cash and Non-Cash Items
The Cash Flow Statement
About CFO, CFI and CFF
Working out CFO
Interpreting Cash Flow Statements
A Few Essential Ratios
The Effect of Currency Exchange Rates
Performing Common Size Analysis for Decision Making

Using Ratios to Analyze and Interpret Statements

Interpreting Company Financial Statements
Overview of Common Financial Ratios
Working with Activity Ratios
Working with Liquidity Ratios
Working with Solvency Ratios
Working with Profitability Ratios
Relating Leverage Levels to Risk
The Importance of Revenue/Expense Recognition Policies
Other Important Considerations

About the Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC): What is it?
Essential Concepts on Rates of Return
The Effects of Debt, Equity and Taxes
Choosing a Capital Structure that Works
Determining the WACC in Different Situations

Capital Budgeting

Basic Principles of Capital Budgeting
Making Good Decisions: All about Decision Criteria
Working with NPV, IRR, PB and DPB
Using NPV and IRR to Make Decisions
Making Good Cash Flow Projections
Straight Line and Accelerated Depreciation Methods
Making Good Decisions for Replacement Projects

Project Analysis and Evaluation

Dealing the Mutually Exclusive Projects
Making use of Capital Rationing
Managing Project Risk: Sensitivity, Scenario and Simulation Analysis
Factoring in Real Options
Common Capital Budgeting Mistakes

Hedging and Derivatives

Why Hedge?
The Dynamics of Hedging
Understanding and Using Forward Contracts
Understanding and Using Currency Swaps
Working with Options
Derivatives and the Real World: Mitigating Real Risk

Fixed Income and Interest Rates

Fixed Income Primer: Pricing and Debt Securities
Bond Prices, Interest Rates and the Yield Curve
About Bonds and Embedded Options
Essentials of Bond Pricing

Putting it All Together

How to Make Projects Happen: A Complete Case Study

Course Locations

  • Ottawa

  • Montreal

  • Toronto

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