Return on Investment ROI Analysis for Manufacturing

Revenues, depreciation, cost of capital, inventory … How to know if a major investment is right for your organization
Return on Investment ROI Analysis for Manufacturing
File Size :
1.30 GB
Total length :
2h 21m

Category

Instructor

Ray Harkins, The Manufacturing Academy

Language

Last update

7/2023

Ratings

4.5/5

Return on Investment ROI Analysis for Manufacturing

What you’ll learn

Capital investment justification (equipment, new processes, building, etc.)
Accounting principles such as balance sheets, COGS, accounts payable, accounts receivable, and gross margin.
Net Present Value (NPV), Cost of Capital and the Time value of money
Free Excel templates to build your own capital justification model
Net Working Capital and the typical business cycle.
Financial modeling and analysis

Return on Investment ROI Analysis for Manufacturing

Requirements

Fundamental knowledge of manufacturing
Basic Excel skills
Basic math skills

Description

Return on Investment (ROI) Analysis for Manufacturing teaches the tools, models and concepts manufacturing professionals need to determine if a significant investment like a new piece of equipment will be financially beneficial to their organization. This course teaches the basics of ROI analysis such as estimating revenues, on-going expenses, and the initial investment. It also explores more advanced aspects of capital investment justification such as adjusting for risk, changes to net working capital, and estimating overhead.  It then shows the student how to assemble these projected expenses and revenues into a financial model designed to return the Net Present Value (NPV) of the project. NPV is the method experts agree is the best for evaluating capital investments.If you are eager to add business finance and financial modeling to your skill set, then this is the class for you!If you are looking to merge your project engineering skills with the real world of business finance, or move from an engineering role to a managerial one, then this course is for you!If you are looking for a clear and straight-forward explanation of the sometimes confusing world of business finance, then sign up today!”It is comprehensive and straightforward instruction with practical examples.” – Ben P.

Overview

Section 1: Capital Investment Justification

Lecture 1 Introduction

Lecture 2 Initial Investments

Lecture 3 Initial Investments in the Model

Lecture 4 Salvage Value Overview

Lecture 5 Salvage Value in the Model

Lecture 6 Sales Revenue

Lecture 7 Sales Revenue in the Model

Lecture 8 Direct Costs

Lecture 9 Direct Costs in the Model

Lecture 10 Manufacturing Overhead

Lecture 11 Depreciation

Lecture 12 Electrical Usage

Lecture 13 Overhead in the Model

Lecture 14 Gross Margin

Lecture 15 Cash Flows

Lecture 16 Change in Net Working capital

Lecture 17 Net Working Capital Requirements

Lecture 18 Summarizing Annual Cash Flows

Lecture 19 Cost of Capital

Lecture 20 Discounting Future Cash Flows

Lecture 21 Project NPV

Lecture 22 Interpretation of Results

Lecture 23 UPDATE: Introduction to Profitability Index

Lecture 24 UPDATE: Profitability Index Explained

Lecture 25 Compounded Annual Growth Rate (CAGR)

Lecture 26 Conclusion

Lecture 27 Bonus Lecture

Anyone that wants to improve their business finance knowledge skills,Industrial and Manufacturing engineers and managers,Project managers,Anyone interested in financial modelling

Course Information:

Udemy | English | 2h 21m | 1.30 GB
Created by: Ray Harkins, The Manufacturing Academy

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