CFO Series: Tactics to Reduce Investment: 2nd Strategy ROI

Overview

What do investors want? They actively pursue three key strategies; 1) improve profit (most over used strategy), 2) reduce investment (an under used strategy), and 3) reduce risk (a much-neglected strategy). In this second of three sessions, see 2) above, we will explore strategies to improve asset utilization and reduce investment. We will discuss proven techniques to help your organization thrive.

Prerequisites

At least six (6) months of professional financial statement analysis experience, or at least six (6) credit hours of corporate finance classwork at an accredited university.

Objectives

• Determine the issues that drive asset utilization
• Identify ways to make improvement happen
• Apply knowledge gained about the cost of capital, asset utilization, and choosing an appropriate process

Highlights

• Cost of capital
  • What do investors want?
  • What does my capital really cost?
  • How can we approximate the cost?
  • Utilizing the Du Pont Formula in a discounted cash flow world.
• Increasing asset utilization
  • What should we do, and what should we allow others to do?
  • Buying the right equipment at the right price.
  • Increasing throughput.
  • Complexity – the capacity thief.
• Process choices
  • Should we automate?
  • Should we lease or purchase?
  • Impact of automation on risk and return?