NXGN-200／Corporate Finance

Corporate Seminar

Corporate Finance 101

Turn what investors expect into the language of management

From the time value of money, the foundation of corporate finance, to the different expectations of shareholders and lenders, WACC and ROIC, learn by working through case studies yourself.

Format: Lecture, case studies and exercises
Audience: Managers and executives
Duration: Half a day (three to four hours)
Dates and capacity: Please contact us
Lecturer: Ariki Ono

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Does this sound familiar?

You can read the numbers, but not through the eyes of those who provide the money

Companies are now expected to manage with the cost of capital in mind, and terms such as ROIC and WACC are common inside the business. Yet day-to-day decisions are still framed in terms of sales and profit.

Investment debates focus only on how much it will earn, not on when it pays back or whether the return justifies the risk

You have heard of ROIC and WACC but cannot explain how they connect to decisions in your own department

You do not know what shareholders and banks look for in your company, so the financial figures feel like someone else’s business

Corporate finance is not specialist knowledge for the finance department alone; it is the shared language of leaders, asking whether the business creates more value than its providers of capital expect.

Investor Expectations

The same money, different expectations

Capital comes from shareholders and lenders. Shareholders look for future returns; lenders look for the capacity to repay. Understanding this difference is the starting point for capital structure and the cost of capital.

Equity
Shareholders
The question they ask: “How much will you grow the money we entrust to you?”
What they look at
Future returns. They expect growth that justifies the risk, through dividends and a rising share price
Key measures
ROE, cost of equity, price-to-book ratio, total shareholder return
Debt (loans and bonds)
Lenders
The question they ask: “Can you repay as agreed?”
What they look at
The capacity to repay. They check for cash flow that keeps covering interest and principal, and for financial stability
Key measures
Debt repayment period, interest coverage ratio, equity ratio

The weighted average of these two expectations is WACC, the weighted average cost of capital. Value is created only when the ROIC a business earns exceeds its WACC.

Case Studies

Learn by working through the cases

You work through calculation and analysis cases again and again, using Excel to work out the figures and reason from them yourself.

Time value of money exercises
The future value of a deposit, an investment in land and the present value of a trust paid out years from now. See how the value of the same sum changes as the discount rate moves.
Nike and adidas
Compare the world’s two largest sportswear makers using their published financial statements, and see how differences in profitability, capital efficiency and capital structure show up in enterprise value.
Logistics company A and logistics company B
Of two companies in the same industry, which one will money flow to, and why? Analyse them from three perspectives: the external environment (PESTEL), industry structure (five forces) and financials.
Advising as a CFO
Set out the external environment, financial position and strategy of logistics company A, and put together the advice you would give its management as a finance officer.

What You'll Gain

Skills and insights you will walk away with

Understand what money really is

See how the value of money is set by two factors: time and risk.

Read what investors expect

Explain what shareholders and lenders look for in your company, using each one’s own measures.

Measure value with ROIC and WACC

Judge whether a business or an investment creates value by the gap between ROIC and WACC.

Talk about management through numbers

Analyse a company from its financial statements and external environment, and turn the analysis into recommendations.

Program

How the programme is structured

The aim is to develop leaders who understand what providers of capital expect and can explain their department’s decisions in terms of enterprise value.

Case

Analyse finance and strategy through cases on real and hypothetical companies

Exercise

Calculate present value and WACC with your own hands

Discussion

Put together advice for management from the CFO’s seat

Chapter 01

What is money?

Accounting records the past; finance deals with future value
Why money goes where it is invited and stays where it is treated well
The time value of money: compound interest, future value and present value (exercises)
Risk and return, and the logic of diversification

Chapter 02

What do providers of capital expect?

Capital markets and financial instruments (equity and debt, primary and secondary markets)
What shareholders expect: future returns and the cost of equity
What lenders expect: the capacity to repay and financial stability
Capital structure: how to combine debt and equity

Chapter 03

Measuring enterprise value

What enterprise value is: book value, market value and intangible assets
How to calculate WACC, the weighted average cost of capital
How the gap between ROIC and WACC creates value, and what a price-to-book ratio below one means
Discounted cash flow and the yardsticks for investment decisions (NPV and IRR)

Chapter 04

Case studies

Nike and adidas: comparing profitability and capital efficiency through the financial statements
Logistics company A and logistics company B: which one will money flow to?
Reading from three perspectives: external environment (PESTEL), industry (five forces) and financials

Chapter 05

Making decisions from the CFO’s seat

The role of the CFO and the messages sent to capital markets
Balancing short-term performance with long-term value creation
Assignment: advise logistics company A as its finance officer

FAQ

Frequently asked questions

Do I need a background in finance or accounting?

No. We do not assume any bookkeeping knowledge, and we start from the time value of money and how to read the three financial statements.

Is it suitable for people outside finance and accounting?

Yes. It is designed for managers and executives in business units, sales, logistics and corporate planning. The aim is for those involved in investment and budget decisions to speak the same language as the finance team and the board.

How does it differ from “ROIC Management Led by the CLO” (NXGN-140)?

This seminar covers the foundations of corporate finance as a whole. NXGN-140 applies those ideas to logistics and supply chain measures. Taking them in sequence deepens your understanding.

How long is it, and in what format?

It is a half-day session (three to four hours) of lectures and case studies. We can also offer a full-day version, split it across several sessions or use your company’s disclosures as a case; please talk to us.

Request

Interested in hosting this seminar at your organisation?

We are happy to tailor the schedule, capacity and format (in-person or online) to suit your needs. Enquiries from HR and corporate planning departments are most welcome.

Enquire about this seminar