Finance & Accounting For Management Consultants And Analysts

A practical guide that will help you understand financial statements & do financial analyses during consulting projects

What you'll learn
Analyze financial statements of a firm especially income statement, balance sheet, cash flows
Create a model of profit and loss statement (income statement) in Excel
Analyze in Excel financial indicators and draw conclusion out of that
Estimate the value of a firm using DCF and multiplier method
You will understand the main difference between financial statements in USA and Europe
You will master main bookkeeping / accounting principles
Requirements
Basic or intermediate Excel
Description
What is the aim of this course?During many consulting projects, you will have to analyze financial statements (balance sheet, income statement, cash flows) and draw conclusions about a specific company. This is especially true during due diligence, strategic projects, and turn-arounds. Financial analyses require a relatively good understanding of finance and accounting. Business Analysts and Management Consultants that did not study Finance or Business tend to have some problems with navigating this area. This course will help you overcome this problem. Those of you who have finished Business School or Economics will find here a great refresher with a lot of practical tips on how to do certain analyses during a consulting project.This course will help you drastically improve your knowledge and skills in finance and accounting. It is designed for people who are or want to become management consultants, business. In the course you will learn 5 main things:How to read financial statements such as a balance sheet, an income (profit & loss) statement, cash flowsHow to draw conclusions from financial statementsMain principles of accountingHow to analyze financial indicatorsHow to estimate the value of the firm / do valuationI will NOT teach you everything about finance & accounting because it is simply not efficient (and frankly you don’t need it). This course is organized around the 80/20 rule and I want to teach you the most useful (from a business analyst/consultant perspective) things that will enable you to understand the financial data and analyze them.This course is based on my 15 years of experience as a consultant in top consulting firms and as a Board Member responsible for strategy, performance improvement, and turn-arounds in the biggest firms from Retail, FMCG, SMG, B2B, and services sectors that I worked for. I have carried or supervised over 90 different performance improvement projects in different industries that generated in total 2 billion of additional EBITDA. On the basis of what you will find in this course, I have trained in person over 100 consultants, business analysts, and managers who now are Partners in PE and VC funds, Investment Directors and Business Analysts in PE and VC, Operational Directors, COO, CRO, CEO, Directors in Consulting Companies, Board Members, etc. On top of that my courses on Udemy were already taken by more than 124 000 students including people working in EY, Walmart, Booz Allen Hamilton, Adidas, Naspers, Alvarez & Marsal, PwC, Dell, Walgreens, Orange, and many others.I teach through case studies, so you will have a lot of lectures showing examples of analyses, tools that we use. To every lecture, you will find attached (in additional resources) the Excels as well as additional presentations, materials shown in the lectures so as a part of this course you will also get a library of ready-made analyses that can, with certain modification, be applied by you or your team in your work.Why have I decided to create this course?Analyzing the financial situation of the firm is a fundamental skill in consulting. It helps you understand the current situation of the firm, identify problems, and estimate potential savings. Many Management Consultants and Business Analysts did not finish Business Schools and sometimes struggle with some financial analyses. This sometimes puts them at a disadvantage and makes it difficult for them to get promoted. On top of that, many consultants and analysts that did study finance & accounting at university/college have forgotten some things.Therefore, I have decided to create this course that will help students understand or refresh the essential elements of finance and accounting. The course will give you the knowledge and insight into real-life case studies that will make your life during a consulting project much easier. Thanks to this course, you will know how to understand financial statements, analyze them and draw conclusions from them. You will also master the basics of valuation.To sum it up, I believe that if you want to become a world-class Management Consultant or Business Analyst you have to have a pretty decent understanding of finance and accounting. That is why, I highly recommend this course to Management Consultants or Business Analysts, especially those that did not finish business school or Economics.In what way will you benefit from this course?The course is a practical, step-by-step guide loaded with tones of analyses, tricks, hints that will significantly improve your knowledge of finance and accounting. There is little theory – mainly examples, case studies with a lot of tips from my own experience as well as other notable examples worth mentioning. Our intention is that thanks to the course you will learn:How to read financial statements such as a balance sheet, an income (profit & loss) statement, cash flowsHow to draw conclusions from financial statementsMain principles of accountingHow to analyze financial indicatorsHow to estimate the value of the firm / do valuationYou can also ask me any question either through the discussion field or by messaging me directly.How the course is organized?The course is divided into the following sections:Introduction. We begin with a little intro to the course. I will show you here what you can expect from this course and how it is organizedProfit & Loss statement. In the second section, I will concentrate on the first financial statement the income statement often called profit & loss statement (P&L). I will show you step by step all elements of the profit and loss statement. We will also have a look at examples of P&Ls for firms like Amazon, Disney, P&G, LPP. We will devote a lot of time to the depreciation and amortizationModeling of Profit & loss statement for FMCG Firm. In this section, I will show you an example of how to model the profit & loss statement in Excel for the FMCG business model.Balance Sheet. In the 4th section, I will concentrate on the second financial statement – the balance sheet. As always we will go through each and every element of the Balance Sheet. We will also discuss the difference between the USA and European balance sheets. We will also have a look at examples of balance sheets for firms like Amazon, Disney, P&G, LPP.Cash flow statement/statement of cash flows. In this section, I will concentrate on the last financial statement – the cash flow. I will show you step by step all elements of cash flow. We will also have a look at examples of cash flows for firms like Amazon, Disney, P&G, LPP.Financial analysis of indicators. In this section, we will have a look at different sets of financial indicators that you can use to analyze a firm. We will have a look at Profitability ratios, ROE Decomposition (DuPont Model), Liquidity ratios, Activity ratios, Debt ratios. We will also calculate them for Amazon so you can see how to use those ratios in practice.Valuation. In the last section, we will discuss different methods of evaluating the firm (estimating its valuation). We will have a look at the DCF methods as well as the Multiplier methods. We will use a case study to see how these methods work in practice.You will be able also to download many additional resources Excels with analyses shown in the coursePresentation of slides shown in the courseLinks to additional presentations and moviesLinks to books worth readingAt the end of my course, students will be able to…Analyze financial statements of a firm especially income statements, balance sheets, cash flowsCreate a model of profit and loss statement (income statement) in ExcelAnalyze in Excel financial indicators and draw conclusions out of thatEstimate the value of a firm using DCF and multiplier methodYou will understand the main difference between financial statements in the USA and EuropeYou will master the main bookkeeping/accounting principlesWho should take this course? Who should not?Management ConsultantsBusiness AnalystsStartups foundersManagersStudents that did not finish business schoolStudents who want to refresh their knowledge about Finance & Accounting

Overview

Section 1: Introduction

Lecture 1 What the course will be about

Lecture 2 A little bit about me

Lecture 3 How this course will be organized?

Lecture 4 How to deal with Blurry image

Lecture 5 How to reach additional resources

Section 2: Profit & loss statement

Lecture 6 Profit & loss statement – Introduction

Lecture 7 3 financial statements

Lecture 8 What is the role of P&L

Lecture 9 Revenue – General division

Lecture 10 Revenue – Case study – Introduction

Lecture 11 Revenue – Case study – Data Available

Lecture 12 Revenue – Case study – Solution

Lecture 13 Costs – general division

Lecture 14 Costs – Case study – Introduction

Lecture 15 Costs – Case study – Solution

Lecture 16 P&L – General structure

Lecture 17 P&L – Case study – Introduction

Lecture 18 P&L – Case study – Solution in Excel

Lecture 19 P&L – Case study – Solution in Power Point

Lecture 20 P&L – Alternative names for profits

Lecture 21 Division of operating Expenses – by type of costs

Lecture 22 Division of operating Expenses – by stages

Lecture 23 COGS alternative names

Lecture 24 What is Gross Profit / Margin

Lecture 25 What is Net Margin

Lecture 26 Gross Profit – Case study – Introduction

Lecture 27 Gross Profit – Case study – Data Available

Lecture 28 Gross Profit – Case study – Solution in Excel

Lecture 29 Gross Profit – Case study – Solution in Power Point

Lecture 30 P&L example – Amazon

Lecture 31 P&L example – Disney

Lecture 32 P&L example – P&G

Lecture 33 P&L example – LPP

Lecture 34 Depreciation / Amortization – a weird cost

Lecture 35 Depreciation / Amortization – Short example

Lecture 36 Depreciation / Amortization – Short example – Excel

Lecture 37 Depreciation / Amortization – Case study – Introduction

Lecture 38 Intangibles – modeling of gross value, net value and depreciation

Lecture 39 Machinery – modeling of gross value, net value and depreciation

Lecture 40 Depreciation / Amortization – Summary of the Case study

Lecture 41 EBITDA – definition

Lecture 42 Why people look at EBITDA?

Section 3: Modeling of Profit & loss statement for FMCG Firm

Lecture 43 Modeling of Profit & loss statement for FMCG Firm – Introduction

Lecture 44 Introduction to the FMCG Business Model

Lecture 45 Things that matter in FMCG Business Model

Lecture 46 Introduction to modeling FMCG Services in Excel

Lecture 47 Drivers for FMG business model

Lecture 48 FMCG business model in Excel - Basic assumptions and Sales

Lecture 49 FMCG business model in Excel - Fixed and Variable Production Costs

Lecture 50 FMCG business model in Excel - Gross Margin

Lecture 51 FMCG business model in Excel - Selling & Marketing Costs and Net Margin

Lecture 52 FMCG business model in Excel - Net Margin

Lecture 53 FMCG business model in Excel - Head Office costs

Lecture 54 FMCG business model in Excel - P&L

Section 4: Balance Sheet

Lecture 55 Balance Sheet – Introduction

Lecture 56 What is a Balance Sheet?

Lecture 57 Balance Sheet elements

Lecture 58 Non-current assets – General overview

Lecture 59 Current assets – General overview

Lecture 60 Equity – Main sources

Lecture 61 Equity – Share prices

Lecture 62 Equity – General overview

Lecture 63 Non-current liabilities – General overview

Lecture 64 Current liabilities – General overview

Lecture 65 Balance Sheet – Short Exercises – Introduction

Lecture 66 Balance Sheet – Short Exercises – Data Available

Lecture 67 Balance Sheet – Short Exercises – Solution Part 1

Lecture 68 Balance Sheet – Short Exercises – Solution Part 2

Lecture 69 Accrual accounting

Lecture 70 Prepayments – Short Exercises – Introduction

Lecture 71 Prepayments – Short Exercises – Data Available

Lecture 72 Prepayments – Short Exercises – Solution

Lecture 73 Balance Sheet example – Amazon

Lecture 74 Balance Sheet example – Disney

Lecture 75 Balance Sheet example – P&G

Lecture 76 Balance Sheet example – LPP

Section 5: Cash Flow

Lecture 77 Cash Flow – Introduction

Lecture 78 What is the purpose of Cash Flow

Lecture 79 3 parts of Cash Flow

Lecture 80 Cash Flow from Operating Activities

Lecture 81 Cash Flow from Investing

Lecture 82 Cash Flow from Financing

Lecture 83 Cash Flow statement example – Amazon

Lecture 84 Cash Flow statement example – Disney

Lecture 85 Cash Flow statement example – P&G

Lecture 86 Cash Flow statement example – LPP

Section 6: Financial analysis of indicators

Lecture 87 Financial analysis of indicators – Introduction

Lecture 88 Profitability ratios – Overview

Lecture 89 Profitability ratios – Case Study – Data Available

Lecture 90 Profitability ratios – Case Study – Solution

Lecture 91 ROE Decomposition

Lecture 92 Liquidity ratios – Overview

Lecture 93 Liquidity ratios – Case Study – Solution

Lecture 94 Activity ratios – Overview

Lecture 95 Activity ratios – Case Study – Solution

Lecture 96 Debt ratios – Overview

Lecture 97 Debt ratios – Case Study – Solution

Section 7: Valuation

Lecture 98 Valuation Case study – Introduction

Lecture 99 Introduction to Valuation

Lecture 100 Introduction to DCF method

Lecture 101 Difference between FCFF and FCFE

Lecture 102 DCF method of valuation applied to FCFF

Lecture 103 DCF method of valuation applied to FCFE

Lecture 104 Introduction to using multipliers for valuation

Lecture 105 Enterprise to EBIT or EBITDA

Lecture 106 Price per Earning multiplier

Lecture 107 More on Valuation

Lecture 108 How to increase the value of the business

Section 8: Conclusions

Lecture 109 Bonus Lecture

Management Consultants,Business Analysts,Startups founders,Managers,Students who want to refresh their knowledge about Finance & Accounting,Students without MBA / business school education