This course explains with practical examples how to develop and calculate all the indicators mentioned, provides Excel templates and describes how to use them. It also show how to interpret each indicator and the possible decisions to be made in different scenarios.

Financial Indicators & Small Businesses

Course Description

Strong financial skills are a key factor in the success of small businesses, helping owners and managers make informed decisions that drive growth and sustainability. By improving your financial literacy, you can gain a clearer understanding of your business’s health, make smarter decisions, and increase your chances of long-term success. 

In this hands-on workshop, you will learn how to develop, calculate, and interpret key financial indicators essential for assessing the health and performance of small businesses. Designed for small business owners, managers, or anyone interested in financial analysis, this course provides practical examples, Excel templates, and step-by-step guidance on using these tools. 

You’ll learn about profitability, leverage, liquidity, efficiency, and value creation indicators, and how to apply them to make informed decisions for budgeting, risk management, and growth.

Throughout the session, we’ll dive into real-world scenarios to interpret financial metrics and discuss actionable strategies. By the end, you’ll be equipped to measure financial performance, communicate effectively with stakeholders, and ensure the sustainability of a small business.

There will be ample opportunities for questions.

Course Structure

During the course, we will work through the following topics:

• Introduction to financial analysis and its role in small business success
• Understanding financial indicators such as profitability, liquidity, solvency, and value creation
• Calculating and interpreting profitability indicators including gross margin and ROE
• Exploring leverage indicators including debt-to-equity ratio and interest coverage
• Assessing liquidity and efficiency ratios including current ratio and inventory turnover)
• Measuring value creation using WACC and EVA)
• Using Excel templates to calculate and analyse financial indicators
• Practical examples and scenario-based decision-making
• Tips for communicating financial health to stakeholders

Course Learning Outcomes

By the end of this course, students will be able to:

• Understand the importance of financial indicators for small business decision-making and sustainability
• Calculate and interpret key profitability indicators such as gross margin, ROA, and ROE
• Assess leverage and risk using indicators like debt-to-equity and interest coverage ratios
• Evaluate liquidity and efficiency with ratios such as current ratio and accounts receivable days
• Measure value creation using tools like WACC and EVA
• Use provided Excel templates to perform financial calculations
• Analyse financial data to identify risks and opportunities
• Make informed decisions on budgeting, investments, and resource allocation
• Effectively communicate financial performance to stakeholders, investors, or lenders

Course Requirements

For an optimal learning experience, it is recommended that students bring a laptop with Microsoft Excel installed.

Preferably, students should have a basic understanding of financial statements including balance sheets and profit and loss statements.

The tutor will provide Excel templates and assist with their use during the session.

Your Tutor is Ivan Ocampo

Ivan Ocampo has been teaching at WEA since June 2023. 

Ivan is a dedicated financial management professional with a robust background in financial activities encompassing financial analysis, corporate finance, company valuation, mergers and acquisitions, and project management. 

He is proficient in financial and managerial accounting with knowledge of taxes, and his expertise extends to strategic management, covering areas such as strategic planning, marketing and sales, customer service, team management, KPIs, quality systems, negotiation, and risk management.

Ivan is currently studying a Master's in Accounting.