Finance

The financial impact of procurement goes well beyond cost reduction. It extends to such critical performance areas as business growth, profitability, cash flow, and asset utilization. Procurement professionals therefore need to be able to quantify this broader impact, and then communicate that message to senior management so that they understand how procurement can contribute to company success.

The finance competence includes: How to read the balance sheet of a supplier. Understanding the profit and loss account. Use EBIT figures. Understand the importance of cash flow. How a procurement professional can impact the cash flow of an organization. Use ratios as ROTA, ROE, Working Capital, etc.

Finance eLearning Courses

Following are the eLearning courses for Finance –

Reading the Balance Sheet

Active/passive and 5 boxes of a balance sheet: Fixed assets. Current Assets. Owners’ funds. Long-term liabilities & current liabilities. What is the financial business cycle? Critical values of balance sheet: Total Assets, Capital Employed, Net Worth.

Reading the Balance Sheet

Active/passive and 5 boxes of a balance sheet: Fixed assets. Current Assets. Owners’ funds. Long-term liabilities & current liabilities. What is the financial business cycle? Critical values of balance sheet: Total Assets, Capital Employed, Net Worth.

Understanding Profit & Loss Account

Structure of P&L: Total revenue. COS. Gross profit. Operating costs & Financial costs. Net profit. What is EBIT – EBT – EAT – RE?

 

Importance of Cash Flow

Why is cash king? What are the components of cash cycle? Role of profit and depreciation in cash flow. Difference between cash and profit – how can a profitable company go bankrupt? How can you – as a manager – influence the cash flow of your organization?

Reading the Balance Sheet

Active/passive and 5 boxes of a balance sheet: Fixed assets. Current Assets. Owners’ funds. Long-term liabilities & current liabilities. What is the financial business cycle? Critical values of balance sheet: Total Assets, Capital Employed, Net Worth.

Understanding Profit & Loss Account

Structure of P&L: Total revenue. COS. Gross profit. Operating costs & Financial costs. Net profit. What is EBIT – EBT – EAT – RE?

 

Importance of Cash Flow

Why is cash king? What are the components of cash cycle? Role of profit and depreciation in cash flow. Difference between cash and profit – how can a profitable company go bankrupt? How can you – as a manager – influence the cash flow of your organization?

Financial Ratios

Liquidity ratio’s: Current Ratio & Quick Ratio. Working Capital to Sales Ratio. Performance Ratio’s. ROTA. ROE. Working Capital.

Quiz on Return on Total Assets (ROTA)

This Quiz will confront students with real-live situations which will impact not only your companies’ P&L but also the balance sheet. Students will need to decide the best option, taken ROTA into account.

 

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