Financial Acumen for Non-Financial Managers from Coursera

What's inside

Syllabus

Module 1: Introduction, Balance Sheet and Income Statement

This module was designed to give you a foundational overview of financial reporting and income statements. You’ll identify and analyze balance sheet equations and its key components such as assets, liabilities, and shareholders’ equity. Through examining a sample real-world financial statement, you’ll learn how to calculate income, revenue, and expenses transactions, and see how the income statement is linked to changes in the balance sheet. By the end of this module, you’ll have a better understanding of the key components in financial reporting and learn how to craft an accurate income statement for your organization.

Module 2: Cash Flow Statement

In this module, you’ll examine cash flow statements further, and take a closer look at methods of creating cash flow statements. Using your understanding of financial reporting, you’ll be able to classify different business activities into separate categories such as operating, investing, and financing activities. Through analyzing the real-world financial statement from the previous module, you’ll learn about both direct and indirect methods of creating cash flow statements. By the end of this module, you’ll be able to differentiate between various business activities and effectively utilize both direct and indirect methods of creating cash flow statements for your organization.

Module 3: Financial Statement Analysis

In this module, you’ll examine a systematic approach to ratio analysis and other common tools of financial statement analysis. You’ll develop an understanding of ratios and liquidity measures so you can accurately assess risk within your organization’s financial activities. You’ll discover different approaches to profitability measures such as Earnings Per Share (EPS), Return on Equity (ROE), and the Dupont Analysis. You will be able to match Return on Assets (ROA) to various types of companies and gain a better understanding of the drivers of ROA. Then, you’ll explore the concepts of sales revenue and different qualities of earnings. By the end of this module, you’ll understand the theoretical basis behind ratio analysis, and be able to employ different ratio analyses and accurately calculate profitability measures for your organization.

Module 4: Linking Non-Financial Metrics to Financial Performance

In this module, you’ll discover how to determine which non-financial performance measures predict financial results through asking these fundamental questions: Of the hundreds of non-financial measures, which are the key drivers of financial success? How do you rank or weight non-financial measures which don’t share a common denominator? And what performance targets are desirable? You’ll examine comprehensive examples of how companies have used accounting data to show how investments in non-financial dimensions pay off in the future and important organizational issues that commonly arise using these models. By the end of this module, you’ll know how predictive analytics can be used to determine what you should be measuring, how to weight different performance measures when trying to analyze potential financial results, how to make trade-offs between short-term and long-term objectives, and how to set performance targets for optimal financial performance.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores how financial data and non-financial metrics can be linked to determine optimal financial strategies

Taught by recognized professors from the Wharton School: Christopher D. Ittner and Richard Lambert

Applies different approaches to analyzing financial performance using real-life examples

Develops skills in understanding how financial and non-financial data interact to forecast events for an organization

Suitable for students with a foundational understanding of financial reporting and income statements

Provides a practical understanding of how data is used to assess what drives financial performance

Reviews summary

Largely positive financial acumen course

Learners say this course is largely positive, offering a comprehensive and engaging overview of financial accounting and analysis. The instructors are knowledgeable and explain concepts clearly, making the course suitable for non-financial professionals. However, some learners found the quizzes difficult and the accounting concepts could be explained more clearly for beginners.

Quizzes are challenging but help reinforce learning.

""The quizzes were helpful and challenging.""

""The course is difficult, but I found it very informative.""

""Challenging and insightful programme.""

Explanations are clear and easy to understand.

""Professors Richard Lambert and Christopher Ittner explain the concepts elegantly and at the right pace.""

""The instructors explain things very clearly.""

""The explanations were clear and concise.""

Covers a wide range of topics in financial accounting and analysis.

""A great and well done basic course to understand the fundamentals of accountability and finance.""

""Everything i was looking for from this course and more.""

""Comprehensive and Engaging""

Some learners found the accounting concepts difficult to understand.

""I think this course should be more dynamic so it becomes more understandable.""

""The first 2 modules were very confusing and took much longer to get through.""

""I had to review some of the videos twice or trice.""

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 Financial Acumen for Non-Financial Managers with these activities:

Review Basic Accounting Principles

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Revisit the fundamental principles of accounting to strengthen your understanding of the course materials.

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Review the basic accounting equation.
Identify the different types of financial statements.
Explain the purpose of each financial statement.
Prepare a simple balance sheet.
Prepare a simple income statement.

Review Accounting Standards for Non-Financial Investors

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Review the key concepts of financial reporting, income statement, and cash flow statement to gain a better understanding of the course materials.

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Read the first chapter of the book.
Summarize the key concepts in your own words.
Identify the different types of financial statements.
Discuss the importance of financial reporting.
Consider how these concepts apply to your own organization.

Complete Practice Problems on Financial Ratios

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Practice calculating and interpreting financial ratios to improve your understanding of financial statement analysis.

Browse courses on Financial Statement Analysis

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Find practice problems on financial ratios online or in a textbook.
Solve the practice problems.
Check your answers.
Identify the different types of financial ratios.
Discuss the importance of financial ratio analysis.

Four other activities

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Participate in Study Groups on Financial Performance Drivers

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Join study groups with peers to discuss the key drivers of financial performance and their implications for investment decisions.

Browse courses on Financial Performance

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Join a study group online or in person.
Participate in discussions on the key drivers of financial performance.
Share your insights and learn from others.
Apply the concepts to your own investment decisions.
Consider the limitations of the discussed concepts.

Follow Tutorials on Linking Non-Financial Metrics to Financial Performance

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Explore the relationship between non-financial metrics and financial performance through guided tutorials to enhance your understanding.

Browse courses on Predictive Analytics

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Find tutorials on linking non-financial metrics to financial performance online.
Follow the tutorials.
Apply the concepts to your own organization.
Discuss the importance of linking non-financial metrics to financial performance.
Consider the challenges of linking non-financial metrics to financial performance.

Develop a Financial Analysis Report

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Apply your knowledge of financial statement analysis to create a comprehensive report that evaluates a company's financial performance and forecasts future scenarios.

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Choose a company to analyze.
Gather the company's financial statements.
Analyze the financial statements using the techniques learned in the course.
Write a report summarizing your findings.
Present your report to your classmates or instructor.

Develop a Financial Forecasting Model

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Create a financial forecasting model to predict future financial performance and make informed business decisions.

Browse courses on Financial Forecasting

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Choose a financial forecasting method.
Gather the necessary data.
Build the financial forecasting model.
Validate the model.
Use the model to forecast future financial performance.

Career center

Learners who complete Financial Acumen for Non-Financial Managers will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts are responsible for analyzing financial data and making recommendations to investors. They are responsible for evaluating the financial performance of companies, making investment recommendations, and developing financial models. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Financial Analysts as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Financial Analyst

Chief Financial Officer

Chief Financial Officers are responsible for overseeing the financial activities of an organization. They are responsible for preparing financial reports, managing cash flow, and developing financial plans. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for CFOs as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Chief Financial Officer

Controller

Controllers are responsible for overseeing the accounting and financial reporting activities of an organization. They are responsible for preparing financial statements, managing internal controls, and ensuring that the organization is in compliance with financial regulations. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be useful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Controllers as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Controller

Venture Capitalist

Venture Capitalists are responsible for investing in and managing early-stage companies. They are responsible for conducting due diligence, developing investment strategies, and negotiating deals. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Venture Capitalists as they need to be able to understand and interpret financial data to make informed decisions about investment opportunities.

See salaries and explore the career path for Venture Capitalist

Investment Banker

Investment Bankers are responsible for advising companies on mergers and acquisitions, capital raising, and other financial transactions. They are responsible for developing financial models, conducting due diligence, and negotiating deals. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Investment Bankers as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Investment Banker

Private Equity Investor

Private Equity Investors are responsible for investing in and managing private companies. They are responsible for conducting due diligence, developing investment strategies, and negotiating deals. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Private Equity Investors as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Private Equity Investor

Management Consultant

Management Consultants are responsible for advising companies on how to improve their operations and financial performance. They are responsible for conducting research, developing recommendations, and implementing solutions. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Management Consultants as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Management Consultant

Strategy Consultant

Strategy Consultants are responsible for advising companies on how to develop and implement strategies. They are responsible for conducting research, developing recommendations, and implementing solutions. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Strategy Consultants as they need to be able to understand and interpret financial data to make informed decisions about strategy development and implementation.

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Chief Operating Officer

Chief Operating Officers are responsible for the day-to-day operations of an organization. They are responsible for managing departments such as finance, human resources, and operations. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for COOs as they need to be able to understand and interpret financial data to make informed decisions about the day-to-day operations of an organization.

See salaries and explore the career path for Chief Operating Officer

Chief Executive Officer

Chief Executive Officers provide high-level guidance and strategic direction for an organization. They are responsible for the overall success of an organization and for making decisions that affect the entire organization. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania can be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for CEOs as they need to be able to understand and interpret financial data to make informed decisions.

See salaries and explore the career path for Chief Executive Officer

Project Manager

Project Managers are responsible for planning, executing, and closing projects. They are responsible for developing project plans, managing project teams, and ensuring that projects are completed on time and within budget. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Project Managers as they need to be able to understand and interpret financial data to make informed decisions about project planning and execution.

See salaries and explore the career path for Project Manager

Risk Manager

Risk Managers are responsible for identifying, assessing, and mitigating risks. They are responsible for developing risk management plans, implementing risk mitigation strategies, and monitoring risks. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Risk Managers as they need to be able to understand and interpret financial data to make informed decisions about risk management.

See salaries and explore the career path for Risk Manager

Product Manager

Product Managers are responsible for developing and managing products. They are responsible for conducting market research, developing product specifications, and launching products to market. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Product Managers as they need to be able to understand and interpret financial data to make informed decisions about product development and marketing.

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Supply Chain Manager

Supply Chain Managers are responsible for managing the flow of goods and services from suppliers to customers. They are responsible for developing supply chain strategies, managing inventory, and ensuring that goods and services are delivered to customers on time and within budget. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Supply Chain Managers as they need to be able to understand and interpret financial data to make informed decisions about supply chain management.

See salaries and explore the career path for Supply Chain Manager

Sales Manager

Sales Managers are responsible for leading and managing sales teams. They are responsible for developing sales strategies, setting sales targets, and motivating sales teams. The Financial Acumen for Non-Financial Managers program from the University of Pennsylvania may be helpful as it helps build a foundation in financial reporting, income statements, cash flow statements, and financial statement analysis. This can be helpful for Sales Managers as they need to be able to understand and interpret financial data to make informed decisions about sales strategy and execution.

See salaries and explore the career path for Sales Manager