Duration: 2 days

Instructor: Fatih KURAN

Objective

Every decision made by company employees has the potential to positively or negatively impact the company's financial position, profitability, and cash flow. Employees who are not directly involved in financial matters must possess basic financial knowledge to understand the implications of their actions on the company’s financial performance.

This program is designed to help participants gain foundational financial knowledge, enabling them to interpret financial data and scenarios more accurately, make numerical evaluations, and understand the financial consequences of their decisions. By the end of the program, participants will be able to perform calculations that simplify their daily tasks, analyze financial matters more effectively, and make more informed decisions.

Who Should Attend

This program is tailored for employees who are not directly responsible for financial management but need to understand and use financial information in their decisions. It focuses on providing basic financial concepts, improving the ability to interpret financial statements, and enabling numerical evaluations for better decision-making.

Content

1. Introduction

• What is Finance?

• Objectives of Financial Management

• Overview of Financial Markets and Their Operations

• Investment Instruments:

o Deposits

o Stock Markets

o Bond Markets

o Other Investment Tools

• Funding Sources

o Bank Loans and Their Types

o Leasing (Financial and Operational Leasing, Sale and Leaseback)

o Murabaha

o Factoring

o Forfaiting

o Other Funding Sources

2. Financial Statements

• Introduction to Financial Statements:

o Balance Sheet

o Income Statement

o Cash Flow Statement

• Objectives of Financial Statements

• Comparing the Income Statement and Cash Flow Statement

• Importance and Drivers of Cash Flow

3. Financial Management

• Financial Analysis:

o Ratio Analysis (Key Financial Ratios and Their Interpretations)

o Critical Financial Ratios for a Healthy Company

o Break-Even Point Analysis

o Operating Leverage

o Financial Leverage

• Working Capital:

o Review of Business Operating Cycle

o Importance of Working Capital

o Calculating Working Capital Requirement

o Factors Affecting Working Capital Requirements

• Cost of Capital

o Cost of Debt

o Cost of Equity

o Calculating Weighted Average Cost of Capital

4. Interest Calculations/Time Value of Money

• Concepts of Interest and Interest Rates

• Accrual Calculations

• Nominal/Effective Interest Rates

• Present Value (PV) Calculations

o Present Value of Cash Flows

o Annuity Concepts and Their Calculations

• Future Value (FV) Calculations

• Internal Rate of Return (IRR)

• Different Repayment Structures and Applications of Time Value of Money

o Debt Sculpting and Sizing

o Equal Principal Payment Structures

o Grace Period Transactions

o Seasonal Payments

o Balloon Payments

o Variable Repayment with Coefficients

o Hybrid Transactions

5. Project and Investment Finance

• Project Risks and Risk Management:

o Investor/Project Owner Risk

o Sales Risk

o Supply Risk

o Operational Risk

o Technology Risk

o Financial Risks (Currency, Interest, Commodity Price)

o Legal and Environmental Risk

o Why do Projects Fail?

6. Project Financial Feasibility

• Project/Investment Cash Flows

• Debt Service Coverage Ratio (DSCR)

• Optimal Equity/Debt Balance in Project Finance

• Evaluation Criteria from the Investor's Perspective:

o Project Profitability (IRR)

o Project Value (NPV)

o Payback Period

• How to Make the Right Loan Choice?

o Currency

o Maturity

o Cash Flow

o Project Net Present Value

o Project Profitability

• Project and Investment Financing Sources

o Bank Loans

o ECA Loans

o Leasing

o Forfaiting

o Vendor Credits

* The course involves Excel applications, and participants are required to bring laptops with Excel 2013 or a higher version installed.