Short Courses

Managing the Profit Creation Cycle

Learn how to create and protect profit while also maintaining a healthy cash flow.
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Overview
Learn how to create and protect profit while also maintaining a healthy cash flow.

Your work as an engineer has an inseparable link to the financial success of a project. Your decisions, priorities and solutions will powerfully move the levers that influence profit and cash flow. Having a foundational understanding of finance will empower you to strategically pull those levers in a way that enhances the bottom line. These skills not only make you an asset to any business but are also quickly becoming non-negotiable expectations in the engineering industry. 

This course will address key knowledge needed for financial acumen. This includes providing a robust understanding of how a business creates profit and how the profit-creation cycle is measured and managed. At the same time, you will learn how  to ‘oil the wheels’ by ensuring the business maintains a suitable level of cash flow.

A core part of this course is the ROE Drivers Equation, which neatly captures the essence of profit creation in a simple formula that is relevant to operational managers. You will also engage with tools such as common sizing, the cash conversion cycle, and cash flow drivers and metrics.

After completing this course you will be able to:

  • discuss the profit-creation cycle from a strategic perspective
  • apply the key ‘levers’ of profit creation to your business and workplace
  • use knowledge of key financial drivers to direct your focus for every project
  • conduct fast financial analyses using profit and cash flow metrics
  • enhance your financial acumen through informed questions.
Details
Price
$449
EA members
$528.23
Non-members

EA members get 15% off on selected workshops and training. Not a member? Sign up now

Any questions?

Duration
5 hours
Location & dates
Online

6 September - 13 September

Online

2 November - 9 November

Additional Information

This workshop will run over 2 x 2.5 hour sessions on the following dates:

6 September 2022 and 13 September 2022, 9:00am - 11:30am AEST

2 November 2022 and 9 November 2022, 10:00am - 12:30pm AEDT

 

RSVP reminders

Registration closes three business days before each workshop.

We can customise this course for groups of six or more.

You choose the time, place, duration and format.

Find out how we can help you and your team by clicking on the button below to request a quote or calling us directly on +61 3 9321 1700.

Duration
Customisable
Delivery
Face to Face
Online - Live
Online - On Demand
Learning Outcomes

Learning Outcomes

  • Explain the core components of the profit-creation cycle
  • Calculate and interpret high-level metrics for managing profit creation
  • Make sense of financial strategies and priorities
  • Use common-size figures to ‘dig into’ balance sheets and income statements
  • Articulate the core and swing factors that determine operational cash flow
  • Apply metrics to analyse and manage financial performance
     
Is this course for you?

Is this course for you?

Any engineer or professional without a financial background will benefit from the practical foundations delivered in this course. If you’re working in project management or within an executive team, the content will be useful to your role.

Prerequisites

There are no prerequisites for this course, but many participants have found it beneficial to also complete Financial Acumen Part 1: Window Model of a Business.

Topics we'll cover

Topics we'll cover

The Profit-Creation Cycle

  • Understand what shareholders want from their investments
  • Apply the three fundamental components of profit creation
  • Make sense of how balance sheets and income statements fit in
  • Use liabilities to leverage return on equity
  • Investigate real-world examples of the DuPont equation
  • Identify operational assets and liabilities
  • Analyse the ‘drivers’ (financial metrics) of profit creation
  • Apply this knowledge to two engineering companies

Tools for Managing the Cycle 

  • Learn to use common-size balance sheets and income statements
  • Practise common-size analysis and the ROE Drivers equation
  • Conduct fast financial analysis of two engineering companies
  • Identify key drivers of operational cash flow and associated metrics
  • Understand core and swing factors that influence operational cash flows
  • See the impact of the operating cycle and cash conversion cycle (CCC)
  • Apply key metrics used to manage operating cash flow
  • Conduct a case study of an engineering-led company
     
Facilitator
Geoff Rip
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