In this course you will understand the Total Cost of Ownership (TCO) – model. Learn how to read the balance sheet of a supplier and understand the profit and loss accounting, use EBIT figures and understand the importance of cash flow. Learn how to apply financial ratio’s like ROTA, ROE, working capital, etc. Get familiar with the topics inventory accounting, activity-based costing and the cash-to-cash cycle.

Following are the eLearning courses for Financials –

Reading the Balance Sheet

Active/passive and 5 boxes of a balance sheet: Fixed assets. Current Assets. Owners’ funds. Long-term liabilities & current liabilities.
What is the financial business cycle?
Critical values of balance sheet: Total Assets, Capital Employed, Net Worth.

Understanding Profit & Loss Account

Structure of P&L: Total revenue. COS. Gross profit. Operating costs & Financial costs. Net profit.
What is EBIT – EBT – EAT – RE?

Importance of Cash Flow

Why is cash king?
What are the components of cash cycle?
Role of profit and depreciation in cash flow.
Difference between cash and profit – how can a profitable company go bankrupt?
How can you – as a manager – influence the cash flow of your organization?

Financial Ratios

Liquidity ratio’s: Current Ratio & Quick Ratio. Working Capital to Sales Ratio. Performance Ratio’s. ROTA. ROE. Working Capital.

Quiz on Return on Total Assets (ROTA)

This Quiz will confront students with real-live situations which will impact not only your companies’ P&L but also the balance sheet.
Students will need to decide the best option, taken ROTA, into account.

Total cost of ownership (TCO)

Definition and positioning.
TCO analysis.
TCO cost model for supplier selection.
TCO cost model for supplier evaluation.

Inventory Accounting

Standard costing of inventory, Inventory transactions.

Activity-based costing

What is activity based costing, Comparison with other methods, Process.

The Cash-to-Cash cycle

Procure to pay process – Inventory conversion process -Order to cash process.


Free Capability Audit