Finance for Managers from Coursera

What's inside

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.

Week 2: Operational Ratios and Forecasting

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.

Week 3: Diagnosis and Action Plan

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.

Week 4: Negative NFO and DuPont Analysis

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.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Examines operational finance concepts like NFO, WC, and DuPont Analysis, providing a comprehensive overview of key aspects

Taught by Miguel Antón, a seasoned instructor in finance and management

Develops tools like sensitivity analysis for evaluating potential outcomes and decision-making

Covers financial ratios and forecasting, building a solid foundation for operational finance management

Suitable for individuals seeking to understand operational finance for decision-making in top management

Reviews summary

Helpful refresher for managers

According to students, this course is a helpful refresher for managers who already have some knowledge of management. Students say that it's important to have a basic understanding of growth rate calculations to get the most out of this course. After completing it, learners say they have a stronger understanding of business concepts.

Course is a great refresher.

"It's a great course if you have some knowledge of management"

Course provides a strong understanding of business.

"after completing this course, you will understand business very well"

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Finance for Managers with these activities:

Create a study guide for operational finance

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Organize your learning materials to help you prepare for the course and retain information in the long term. Focus on creating a study guide that includes key concepts, formulas, and practice questions.

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Gather your learning materials.
Identify the key concepts in each chapter.
Summarize the key concepts in your own words.
Create practice questions to test your understanding.

Review operational finance basics

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Refresh your knowledge of the basics of operational finance to ensure you have a strong foundation for this course.

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Review the course syllabus and objectives.
Read the textbook chapter on operational finance basics.
Complete the online quiz on operational finance basics.

Calculate operational ratios

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Practice calculating operational ratios to improve your understanding of how to analyze a company's financial performance.

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Gather the necessary financial data from a company's financial statements.
Calculate the operational ratios using the appropriate formulas.
Interpret the results of your calculations to assess the company's financial health.

Four other activities

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Discuss operational finance concepts with peers

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Join a peer group to discuss your knowledge and experience of operational finance topics. This will help you learn from others and reinforce your understanding.

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Find a peer group or study buddy.
Set up a regular meeting time.
Prepare some discussion topics.
Participate actively in the discussions.

Volunteer at a non-profit organization

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Apply your operational finance skills to real-world situations by volunteering at a non-profit organization. You'll gain valuable experience and make a positive impact on your community.

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Find a non-profit organization that you are interested in.
Contact the organization to inquire about volunteer opportunities.
Complete the necessary paperwork.
Attend a volunteer orientation.
Start volunteering!

Manage the finances of a simulated company

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Gain practical experience in managing the finances of a company by applying the concepts you learn in this course.

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Find a financial management simulation game.
Create a team to play the game.
Develop a financial strategy for your company.
Implement your financial strategy.
Monitor your company's financial performance.
Make adjustments to your financial strategy as needed.

Develop a financial forecast for a company

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Develop a financial forecast for a company to demonstrate your understanding of how to use operational finance to make informed financial decisions.

Browse courses on Financial Forecasting

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Gather the necessary financial data from a company's financial statements.
Use a financial forecasting model to project the company's future financial performance.
Analyze the results of your forecast to identify potential risks and opportunities.
Prepare a financial forecast report that summarizes your findings.

Career center

Learners who complete Finance for Managers will develop knowledge and skills that may be useful to these careers:

Financial Manager

Financial Managers are responsible for the financial health of an organization. They are involved in planning, organizing, directing, and controlling financial resources. They may also be responsible for developing and implementing financial policies and procedures. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Financial Manager

Budget Analyst

Budget Analysts are responsible for developing, analyzing, and managing budgets. They may also be responsible for forecasting financial needs and developing financial plans. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Budget Analyst

Financial Analyst

Financial Analysts are responsible for analyzing financial data and making recommendations on investment decisions. They may also be responsible for developing financial models and conducting financial research. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Financial Analyst

Tax Accountant

Tax Accountants are responsible for preparing and filing tax returns for individuals and businesses. They may also be responsible for providing advice on tax planning and tax law. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Tax Accountant

Chief Financial Officer (CFO)

Chief Financial Officers are responsible for the financial health of an organization. They are involved in planning, organizing, directing, and controlling financial resources. They may also be responsible for developing and implementing financial policies and procedures. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Chief Financial Officer (CFO)

Venture Capitalist

Venture Capitalists are responsible for investing in early-stage businesses. They may also be responsible for providing guidance and support to these businesses. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Venture Capitalist

Management Consultant

Management Consultants are responsible for providing advice to businesses on how to improve their operations. They may also be responsible for developing and implementing new strategies. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Management Consultant

Investment Banker

Investment Bankers are responsible for advising businesses on how to raise capital. They may also be responsible for structuring and executing financial transactions. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Investment Banker

Auditor

Auditors are responsible for examining the financial records of an organization to ensure that they are accurate and complete. They may also be responsible for providing advice on how to improve financial controls. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Auditor

Controller

Controllers are responsible for the day-to-day financial operations of an organization. They may also be responsible for preparing financial statements and reports. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Controller

Risk Manager

Risk Managers are responsible for identifying, assessing, and managing risks to an organization. They may also be responsible for developing and implementing risk management plans. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Risk Manager

Financial Planner

Financial Planners are responsible for helping individuals and families plan for their financial future. They may also be responsible for providing advice on investments, retirement planning, and estate planning. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Financial Planner

Insurance Agent

Insurance Agents are responsible for selling insurance products to individuals and businesses. They may also be responsible for providing advice on insurance coverage and risk management. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Insurance Agent

Real Estate Agent

Real Estate Agents are responsible for helping individuals and businesses buy, sell, and rent real estate. They may also be responsible for providing advice on real estate investments and market trends. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Real Estate Agent

Loan Officer

Loan Officers are responsible for evaluating loan applications and approving loans. They may also be responsible for providing advice on loan products and interest rates. Finance for Managers may be useful as it provides an overview of operational finance and the types of analyses necessary to develop solid financing decisions.

See salaries and explore the career path for Loan Officer