Financial Planning, Budgeting and Decision-Making Training Course

Participants can calculate, interpret and communicate ratios that diagnose financial performance and risk.

• Profitability ratios: gross margin, operating margin, ROCE and return on equity
• Liquidity ratios: current ratio, quick ratio and operating cash coverage
• Efficiency ratios for receivables, inventory, payables and asset utilisation
• Solvency measures: debt-to-equity, interest coverage and debt service capacity
• DuPont analysis separating profit margin, asset turnover and financial structure
• Trend, benchmark and peer comparisons used to explain performance gaps

Participants can analyse cost behaviour and use relevant costs to support short-term decisions.

• Fixed, variable, stepped and mixed costs classified from operating data
• High-low method used to estimate variable and fixed cost components
• Contribution margin calculated by product, service, customer and channel
• Cost-volume-profit analysis for break-even, target profit and pricing decisions
• Relevant costing identifies avoidable costs, opportunity costs and sunk costs
• Make-or-buy decisions assessed using incremental cash flows and capacity constraints

Participants can construct an integrated operating budget from realistic business assumptions.

• Budget purposes: planning, coordination, resource allocation and performance control
• Sales budget assumptions translated into volume, price and revenue plans
• Operating expense budgets built from staffing, procurement and activity drivers
• Flexible budgets adjust expected costs for actual activity levels
• Zero-based budgeting tests expenditure necessity, cost drivers and alternatives
• Budget calendars assign ownership, deadlines, approvals and consolidation steps

Participants can prepare rolling forecasts and assess cash implications under alternative scenarios.

• Rolling forecasts update assumptions, periods and management actions regularly
• 13-week cash forecast built from receipts, payroll and supplier payment data
• Direct cash forecasting separates collection timing from revenue recognition
• Scenario analysis tests base, downside and upside planning assumptions
• Sensitivity analysis measures effects of volume, price, cost and timing changes
• Forecast governance documents assumptions, sources, owners and revision triggers

Participants can identify working-capital improvements and assess their impact on cash availability.

• Cash conversion cycle measures time between supplier payment and customer collection
• Receivables ageing analysis identifies overdue balances and collection priorities
• Inventory turnover analysis distinguishes buffer stock, slow-moving and obsolete items
• Payables terms assessed against supplier relationships, discounts and liquidity needs
• Working-capital drivers translated into cash-release and funding requirements
• Liquidity actions prioritised using cash impact, feasibility and operational risk

Participants can evaluate investment proposals using discounted cash-flow methods and risk analysis.

• Incremental cash flows distinguish project effects from existing business performance
• Net present value calculated using forecast cash flows and discount rates
• Internal rate of return compared with required return thresholds
• Payback period assessed alongside liquidity, risk and strategic timing
• Terminal values, residual values and working-capital recovery incorporated correctly
• Sensitivity and scenario analysis test investment-case vulnerability to assumptions

Participants can compare financing options and explain their financial implications for the organisation.

• Debt, equity and retained earnings compared by cost, risk and control
• Interest-rate structures assessed for fixed, floating and refinancing exposure
• Weighted average cost of capital applied as an investment hurdle rate
• Debt covenants reviewed for liquidity, gearing and interest coverage requirements
• Lease-versus-buy analysis compares discounted cash flows and operating flexibility
• Funding proposals align timing, repayment capacity and forecast cash generation

Participants can investigate budget variances and recommend proportionate corrective actions.

• Price, volume, mix and efficiency variances separated for management review
• Flexible-budget variances distinguish activity changes from spending performance
• Actual-versus-budget bridges explain changes in revenue, cost and operating profit
• Materiality thresholds focus investigation on significant financial and operational deviations
• Root-cause analysis links variances to decisions, processes and external conditions
• Corrective actions assigned with owners, deadlines, financial impact and follow-up measures

Participants can prepare clear financial recommendations supported by evidence, assumptions and risk analysis.

• Decision criteria define financial returns, strategic fit, risk and affordability
• Business-case structure presents problem, options, costs, benefits and recommendation
• Option appraisal compares financial outcomes, constraints and implementation requirements
• Risk registers assess probability, impact, mitigations and residual exposure
• Balanced Scorecard measures connect financial results with customer, process and capability drivers
• Application plans identify immediate improvements to budgeting and decision routines