Académique Documents
Professionnel Documents
Culture Documents
MBA Framework
External Reporting Financial Performance and Position Financial Statements Regulated (IFRS + Audit) Ratio Analysis
Management Accounting
Internal Users (non regulated) Business processes, internal controls, budgeting & forecasting Allocation of Costs , Breakeven, Volumes, Pricing
Sources of funding Investments Valuing businesses Mergers and acquisitions Financial modelling Risk and return
Financial Accounting
Business Finance
Business Finance
Tools for Strategy & Leadership
2
Must Plan
Needs Funding
Business
2
Grows
Investment Decisions
5 6
Can be Valued
the
GOAL
Demystify the language of finance Simplify complex concepts Practical application Useful tools for decision making Financial modelling in Excel
Assessment
Individual Class Participation & Prep Class Quiz Syndicate Case Write-Up Session 4 (Lifestyle) Case Write-Up Session 7 (SportWorld) Exam Total 10% 10% 10% 10% 60% 100%
Prep Cases
Case 1 Disney Case 2 Clinic Supply Agency Case 3 Green-X Case 4 Lifestyle(Graded) Case 5 Heritage Dolls Case 6 SportWorld (Graded) Case 7 Vodacom
Cycle of Competitiveness
Profit
Cash
Credit Rating Share Price
Reinvest in Company Replace assets Expand assets Systems development Brand Building Skills Development
#1 in Industry
Analysing Performance
Margin Management Asset Management Financial Management
ROE
Net Margin
Asset Turnover
Leverage
Profit Equity
Profit Revenue
Revenue Assets
Assets Equity
Net Margin
Equity Assets Debt
Asset Turnover
Equity Assets Debt
Leverage
Equity Assets Debt
ROE levers
Investing Decisions Operating Decisions Financing Decisions
ROE
Asset Turnover
Net Margin
Gearing
0.68
15%
1.6
0.55
7%
1.6
Influencing Performance
1. Increase revenue or decrease asset base The effect of volume growth/customer growth/brand strength/order book Asset utilisation/working capital management/reducing non productive assets
2.
Make more profit out of existing revenue The effect of margin adjustments due to pricing The effect of operating efficiencies/innovation in production/economies of scale/buying power over suppliers
Increase levels of debt The effect of gearing/leverage
3.
1989
$703m 25% 15% 0.79 12% 26% $484
1994
$1 110m 27% 17% 0.95 16% 27% $624
Share price
History Repeats
2000 share price trades at $150 2002 share price drops below $100 2004 Comcast attempted takeover at $75 - Eisner fired 2006 share price drops to $33 2008 share trades below $20 2010 share is listed at $34