Finance for Non- Financial Staff

The Finance for Non-financial Staff Cheat Sheet!!

Ever wondered why finance matters to you? Let me tell you why!

Understanding finance gives you a powerful edge in decision-making.

𝗜𝘁'𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗷𝘂𝘀𝘁 𝗻𝘂𝗺𝗯𝗲𝗿𝘀; 𝗶𝘁'𝘀 𝘁𝗵𝗲 𝗹𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝗼𝗳 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.

Financial knowledge helps you analyze and interpret data, enabling you to spot opportunities and make informed choices.

Having a grasp of finance helps you protect your department's budget and resources, ensuring efficient resource allocation

𝗛𝗲𝗿𝗲 𝗶𝘀 𝘁𝗵𝗲 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝗳𝗳 𝗖𝗵𝗲𝗮𝘁 𝗦𝗵𝗲𝗲𝘁:

▶️ Definitions

Balance sheet
Profit and Loss account
Cash flows
EBITDA
Profitability
ROE
Net Margin
Operating expenses
and more

▶️ Financial statements (FS)

Example of the main FS
Relation between FS
Content of FS

▶️ Financial ratios explained with formulas

Current ratio
Quick ratio
Other liquidity ratios
Net profit rate
Debt Ratio
Days sales outstanding
Days inventories outstanding
and more

▶️ Structure of the finance department

▶️ Vertical financial analysis

▶️ Discounting, cash flow discounting example

▶️ Example of valuation via EBITDA multiple

▶️ Financial terms comparison