Financial Forecasting and Reporting from Coursera

This course discusses how public projects are evaluated using cost-benefit analysis. Learners discover how interest rates and prices for stocks and bonds are determined. Techniques are presented on how to create departmental budgets for engineering cost centers and pro forma statements for profit centers. Learners then work with corporate financial statements to assess a company’s financial health, including recent measures of environmental, social, and corporate governance (ESG).

This course can be taken for academic credit as part of CU Boulder’s Master of Engineering in Engineering Management (ME-EM) degree offered on the Coursera platform. The ME-EM is designed to help engineers, scientists, and technical professionals move into leadership and management roles in the engineering and technical sectors. With performance-based admissions and no application process, the ME-EM is ideal for individuals with a broad range of undergraduate education and/or professional experience. Learn more about the ME-EM program at https://www.coursera.org/degrees/me-engineering-management-boulder.

What's inside

Syllabus

Understanding Financial Statements

Investment decisions are often based on a company’s financial performance, and such performance is captured in its financial statements. The three examined in this course are the income statement, the balance sheet, and the statement of cash flows. Collectively, these provide a clear picture of a company’s profitability, its net worth, and how it manages its cash.

Analyzing Financial Statements: Ratio Analysis

Financial statements inform management and investors about a company’s financial performance in absolute terms – dollars and cents. But it is often more valuable to understand performance in relative terms, such as gross profit relative to revenues, measured as a percentage. This makes it easier for management to compare one year to another and for investors to compare one company to another. Ratio analysis is the way this is done, and there are several categories of ratios that measure a company's liquidity, profitability, debt management, and investment potential.

Budgeting and Forecasting

Technical Managers are often tasked with preparing an annual budget for their project team, department, or product line. This involves estimating future costs, and in the case of a profit center, forecasting future revenues. Such forecasts can be made more reliable through a combination of qualitative and quantitative techniques.

Risk Management Techniques

Forecasting future revenues and costs for a project invariably involves uncertainty, and such uncertainty equates to financial risk - the greater the uncertainty, the greater the risk. Risk management is about mitigating financial risk by assessing a project’s valuation under a range of different conditions, identifying the variables that most contribute to risk, and creating a plan to minimize the likelihood of any financial downside.

Sustainability Reporting

Sustainability has become an important consideration in how businesses operate and govern themselves. Managers today focus on their company’s Triple Bottom Line: measuring environmental and social impacts along with their financial performance. Investors are interested in this too, and in response, companies with sustainability as a strategic objective now report their non-financial performance – enabling investors to assess progress toward sustainability goals.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Suitable for engineering managers and executives new to capital budgeting and financial reporting

Emphasizes techniques for valuing investment opportunities and evaluating project risk

Provides practical guidance on preparing and analyzing financial statements and creating budgets

Demonstrates how to integrate sustainability reporting into financial management practices

Led by a professor with extensive experience in engineering management and finance

May require additional knowledge of finance and accounting for those new to these topics

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 Forecasting and Reporting with these activities:

Volunteer at a financial services organization

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Gain practical experience in the financial services industry while giving back to the community.

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Find a financial services organization that offers volunteer opportunities.
Apply for the volunteer position and complete the necessary training.
Perform your volunteer duties, such as assisting with financial literacy programs or providing administrative support.

Review accounting basics

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Review the basics of accounting to ensure a strong foundation for understanding financial statements.

Browse courses on Accounting

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Review journal entries and trial balances.
Practice creating simple income statements and balance sheets.
Review the process of adjusting entries.

Follow tutorials on financial budgeting and forecasting

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Enhance your skills in financial budgeting and forecasting through guided tutorials.

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Find reputable online tutorials or courses on financial budgeting and forecasting.
Follow the tutorials step-by-step.
Practice applying the techniques you learn to real-world scenarios.

Three other activities

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Solve financial analysis problems

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Practice applying financial analysis techniques to real-world scenarios.

Browse courses on Financial Analysis

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Find financial data on publicly traded companies.
Calculate key financial ratios such as profitability, liquidity, and solvency.
Use the ratios to analyze the financial health of the companies.

Read Measuring and Managing Financial Risk

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Gain a deeper understanding of financial risk and techniques for managing it.

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Read chapters 1-3 to gain an overview of financial risk.
Read chapters 4-6 to learn about specific risk management techniques.
Complete the practice problems at the end of each chapter to test your understanding.

Create a financial model

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Develop your financial modeling skills by creating a model for a specific business scenario.

Browse courses on Financial Modeling

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Identify the business scenario and the financial metrics to be analyzed.
Gather and organize the relevant financial data.
Build the financial model using a software tool such as Excel or Google Sheets.
Test and validate the model by comparing its outputs to historical data.
Use the model to analyze the business scenario and make recommendations.

Career center

Learners who complete Financial Forecasting and Reporting will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts study and analyze a company’s financial health. Professionals in this role use their skills and expertise to make sound recommendations about investments. This Financial Forecasting and Reporting course can help you develop the analytical, problem-solving, and communication skills needed to succeed as a Financial Analyst. The course will equip you with the knowledge and skills to analyze financial statements, make investment decisions, and manage risk. With the skills learned in this course and further experience, you may be well-qualified for this role.

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Investment Banker

Investment Bankers help companies and governments raise money by issuing and selling debt or equity. They also provide advice on mergers and acquisitions. This Financial Forecasting and Reporting course can help you develop the financial modeling, valuation, and presentation skills needed to succeed in this field. This course can help prepare you to produce financial models to assess the financial health of a company, which is a critical part of an Investment Banker’s daily work. The course also teaches budgeting, forecasting, and risk management concepts, all of which are critical to a successful career in Investment Banking.

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Portfolio Manager

Portfolio Managers manage and invest money on behalf of individuals and institutions. They make investment decisions based on their analysis of financial markets and economic conditions. This Financial Forecasting and Reporting course can help you understand the financial principles, theories, and techniques used for investment management. The course covers topics such as asset allocation, risk management, and performance evaluation, all of which are essential for success in this role. You will become familiar with the financial analysis techniques used by professionals in this field and gain insights into how to evaluate and make recommendations on stocks and bonds.

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Risk Manager

Risk Managers identify, assess, and mitigate financial risks for companies. They develop and implement risk management strategies to protect their company's assets and earnings. This Financial Forecasting and Reporting course can help you develop the financial analysis, risk assessment, and risk management skills needed to succeed as a Risk Manager. You will gain foundational knowledge of financial reporting, the ability to analyze financial performance, and an understanding of the techniques used to measure and manage risk..

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Corporate Finance Manager

Corporate Finance Managers oversee the financial planning, budgeting, and investment activities of a company. They also make recommendations on mergers and acquisitions. This Financial Forecasting and Reporting course will help you develop a strong understanding of corporate finance principles and practices, financial analysis, and budgeting, all of which are essential for success as a Corporate Finance Manager.

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Financial Planner

Financial Planners help individuals and families achieve their financial goals. They provide advice on budgeting, saving, investing, and retirement planning. This Financial Forecasting and Reporting course can help you develop the financial planning and advising skills that are essential for success as a Financial Planner. It will also provide you with a solid understanding of financial markets and investment principles. This course will help you build the foundation you need to provide sound financial advice and guidance to clients.

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Auditor

Auditors examine and evaluate financial records to ensure accuracy and compliance with regulations. They investigate financial transactions and prepare reports on their findings. This Financial Forecasting and Reporting course can help you develop the accounting and auditing skills needed to succeed as an Auditor. The course will provide you with a strong understanding of financial reporting standards and regulations, as well as the techniques used to audit financial statements.

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Accountant

Accountants prepare and maintain financial records for businesses and individuals. They also prepare tax returns and provide accounting advice. This Financial Forecasting and Reporting course will help you develop the accounting skills needed to succeed as an Accountant. The course will provide you with a strong foundation in accounting principles and practices, as well as the skills needed to prepare financial statements and tax returns.

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Budget Analyst

Budget Analysts plan and manage budgets for governments and corporations. They analyze financial data and make recommendations on how to allocate resources. This Financial Forecasting and Reporting course can help you develop the budgeting and financial analysis skills needed to succeed as a Budget Analyst. The course will provide you with a strong understanding of budgeting principles and practices, as well as the techniques used to analyze financial data.

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Cost Accountant

Cost Accountants analyze and report on the costs of a company's products and services. They identify ways to reduce costs and improve efficiency. This Financial Forecasting and Reporting course can help you develop the cost accounting skills needed to succeed as a Cost Accountant. The course will provide you with a strong foundation in accounting principles and practices, as well as the techniques used to analyze and report on costs.

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Financial Advisor

Financial Advisors provide financial advice and guidance to individuals and families. They help clients achieve their financial goals, such as saving for retirement or buying a home. This Financial Forecasting and Reporting course can help you develop the financial planning and advising skills needed to succeed as a Financial Advisor. The course will provide you with a strong understanding of financial markets and investment principles, as well as the techniques used to provide financial advice.

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Insurance Actuary

Insurance Actuaries use mathematics and statistics to assess and manage risk for insurance companies. They determine the premiums that policyholders should pay and the amount of money that the company should set aside to cover potential claims. This Financial Forecasting and Reporting course may be useful as it will provide you with a strong foundation in financial and statistical concepts. The course will also help you develop the analytical and problem-solving skills that are essential for success as an Insurance Actuary.

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Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze financial data and make investment recommendations. They work for hedge funds, investment banks, and other financial institutions. This Financial Forecasting and Reporting course may be useful as it will provide you with a strong foundation in financial and statistical concepts. The course will also help you develop the analytical and problem-solving skills that are essential for success as a Quantitative Analyst.

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Data Analyst

Data Analysts collect, analyze, and interpret data to help businesses make informed decisions. They use their skills in statistics, programming, and data visualization to extract insights from data. This Financial Forecasting and Reporting course may be useful as it will provide you with a strong foundation in statistical concepts and data analysis techniques. The course will also help you develop the problem-solving and communication skills that are essential for success as a Data Analyst.

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Software Engineer

Software Engineers design, develop, and maintain software applications. They work for a wide range of industries, including finance, healthcare, and transportation. This Financial Forecasting and Reporting course may be useful as it will provide you with a basic understanding of financial concepts and principles. The course will also help you develop the problem-solving and analytical skills that are essential for success as a Software Engineer.

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