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This is part four of a four part Back to Basics in Corporate Finance series. This may come as a surprise, but cash and profit are not the same thing.  Companies can have good cash flow and not be profitable, as well as show profit while having negative cash flow.  Having enough cash on hand is critical to a company’s long term success, which is why we always say, “cash is king”.

Managers would be wise to focus as much attention on their balance sheet and working capital as they do on the income statement.  This is where they can make a big impact and greatly affect the vitality of their business. 

During this module, you work through exercises using different, well-known companies, showing how each managed its operations and the three key areas of working capital – for better or for worse - to greatly affect their business and cash flow.

Expect to learn:

  • What metrics within working capital investors look at to make assumptions about your business.
  • The two metrics that drive profit.
  • The benefits of a financially transparent organization.

When all is said and done, it’s the people in an organization that drive the business.  Being educated on your company numbers and having financial transparency will keep you focused and motivated on the things that really matter to your businesses success.

Course Series

This course is included in the following series:

4 CoursesFinancial Intelligence

  1. Module One in Financial Intelligence: The Income Statement – Back to Basics Series
  2. Module Two in Financial Intelligence: The Balance Sheet and Cash Flow Statements – Back to Basics Series
  3. Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  4. Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

7 CoursesFinance for Non-Finance Professionals

  • Accounting 101: How To Do Basic Accounting In One Hour
  • Accounting Review: The Basics of Debits and Credits
  • Accounting Review: Overview of Financial Statements; P&L, Balance Sheet, and Cash Flow
  • Learn Finance Principles in 1 Hour
  • Enterprise Risk Management 101
  • Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  • Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

Learning Objectives

  • Identify the three key areas of working capital, and recognize how you can affect them
  • Discover how you can improve the cash flow at your company
  • Explore the variety of differences between cash and profit

9 Reviews (20 ratings)Reviews

4
Anonymous Author
Informative course with an upbeat instructor who is easy to understand!! Would recommend all his courses!!
5
Member's Profile
I wish you would let us see the final exam after you graded so we could see where our problem might be.
5
Member's Profile
excellent instructor, I appreciate the real life examples and stories that made this series interesting
5
Member's Profile
Simple yet important foundation topics for everyone. Nice flow to instruction too
4
Member's Profile
This was good training. The language used is a little non standard though
5
Anonymous Author
Very insightful. Touched on practical matters. Very good presentation.
5
Anonymous Author
Useful Insights
4
Anonymous Author
Informative
4
Anonymous Author
Good

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:58The Basics of Finance and Accounting
Working Capital Mgt
  6:45Working Capital Management
  9:14Inventory/DII
Cash vs. Profit
  6:26The Difference between Cash and Profit
  10:03Analysis and Review
CONCLUSION
  6:26Conclusion
SUPPORTING MATERIALS
  PDFWorkbook: Cash vs. Profit and Working Capital Strategies
  PDFCash vs. Profit and Working Capital Strategies Study Guide/Glossary
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM