Finance for Technical Managers Training Course

Participants can interpret financial reports and ratios to identify performance trends and management questions.

• Common-size analysis compares financial statements across periods and business units
• Trend analysis separates recurring movement from one-off financial effects
• Gross margin, EBITDA and operating margin reveal profitability drivers
• Return on capital employed links operating profit with invested assets
• Current ratio and quick ratio test short-term liquidity
• DuPont analysis decomposes return on equity into operating drivers

Participants can classify costs and select costing information appropriate to operational decisions.

• Fixed, variable and semi-variable costs respond differently to activity
• Trace direct costs to products, projects, services and assets
• Allocate indirect costs using logical drivers and documented assumptions
• Contribution margin supports short-term volume, pricing and capacity decisions
• Break-even analysis calculates required volume, revenue and margin of safety
• Activity-based costing assigns overhead through activities and cost drivers

Participants can prepare operational budgets and update forecasts using current performance evidence.

• Driver-based budgets translate volume, staffing and capacity assumptions into costs
• Annual operating budgets establish approved spending and performance targets
• 13-week rolling cash forecasts use receipts, payroll and supplier payments
• Flexible budgets adjust expected costs for actual activity levels
• Forecast updates distinguish committed costs from estimated future expenditure
• Control accounts reconcile operational records with finance-system balances

Participants can diagnose budget variances and formulate financially grounded corrective actions.

• Price variance isolates changes in unit purchase or labour rates
• Usage variance identifies excess consumption against standard quantities
• Volume variance measures differences between planned and actual activity
• Schedule variance connects project delay with cost and resource effects
• Investigate material variances using source data, owners and timing
• Corrective-action plans specify financial impact, milestones and accountability

Participants can assess how technical and operational decisions affect cash conversion and liquidity.

• Working capital combines receivables, inventory, payables and short-term funding
• Cash conversion cycle measures time between supplier payment and customer collection
• Days sales outstanding identifies receivables collection performance and credit risk
• Inventory turnover reveals stock efficiency, obsolescence exposure and cash tied up
• Supplier payment terms affect cash timing, relationships and procurement cost
• IAS 7 cash flow categories distinguish operating, investing and financing movements

Participants can evaluate capital proposals using cash flows, discounting and explicit decision criteria.

• Relevant cash flows exclude sunk costs and non-incremental allocations
• Net present value discounts future cash flows at required return
• Internal rate of return estimates the proposal's implied annual return
• Payback period highlights liquidity exposure and recovery speed
• Equivalent annual cost compares assets with unequal useful lives
• Terminal values capture disposal proceeds, residual costs and final working capital

Participants can test financial proposals against uncertainty and communicate decision-relevant risk.

• Sensitivity analysis tests individual assumptions against investment outcomes
• Scenario analysis combines demand, cost, timing and price changes
• Expected value weights outcomes using stated probabilities and financial impacts
• Decision trees compare staged commitments, contingencies and alternative outcomes
• Risk registers connect operational threats with quantified financial exposure
• Contingency allowances distinguish identifiable risk from general management reserve

Participants can construct a concise business case that connects technical need with financial value.

• Problem statements quantify current cost, risk, service and capacity constraints
• Options appraisal compares do-nothing, repair, replace and outsource alternatives
• Benefits mapping links technical outputs to measurable financial outcomes
• Whole-life costing includes acquisition, operation, maintenance and disposal costs
• Assumption logs record sources, ownership, confidence and review dates
• Recommendation papers state approval requested, rationale, risks and next actions

Participants can present financial findings clearly and apply selected methods to their own responsibilities.

• Management dashboards combine financial, operational and forward-looking performance indicators
• Variance narratives explain cause, consequence, action and expected recovery
• Waterfall charts communicate bridge movements between planned and actual results
• Finance-business partnering clarifies roles, challenge processes and decision rights
• Present recommendations using decision criteria, alternatives and quantified trade-offs
• Application plans identify upcoming decisions, data needs and finance stakeholders