Financial Management - 14158 Words

FINANCIAL MANAGEMENT – AN OVERVIEW Unit structure: 1. Introduction 2. Learning objectives 3. Section title Meaning Definition Objective Advantages of wealth maximization Criticisms of wealth maximization Scope Functions of Financial Management Role and function of the finance manager Financial Management and Economic Financial management and Accounting Evolution of financial management Functional areas of financial management Financial decisions Have you understood questions Summary Exercises References Financial Management - AV OVERVIEW Meaning - Objectives of Financial Management- ‘A’s of Financial Management - Scope and Functions of Financial Management - Role and Functions of the Financial†¦show more content†¦Planning is one of the most important activities of the financial manager. It makes it possible for the financial manager to obtain funds at the best time in relation to their cost of the conditions under which they can be obtained and their effective use by the business firm. Financial management is the dynamic, evolving or making of day- to-day financial decisions in a business of any size. The old concept of finance as treasurer ship has broadened to include the new, equally meaningful concept of controllership. While the treasurer keeps track of the moneys, the controller’s duties extend to planning analysis and the improvement of every phase of the company’s operations, which are measured with a financial yardstick. Financial management is important because it has an impact on all the activities of a firm. Its primary responsibility is to discharge the finance function successfully. It touches on all the other business functions. All business decisions have financial implications, and a single decision may financially affect different departments of an organisation. In this connection, Raymond Chambers observes: â€Å"Financial management maybe considered to be the management of the finance function. It may be described as making decisions on financial matters and facilitating and reviewing their execution. It may be used to designate the field of study which lies beneath these processes†. FinancialShow MoreRelatedFinancial Report On Financial Management1594 Words   |  7 Pages Nevertheless, besides the advantages as mentioned above, financial reports have a number of disadvantages. Firstly, the expensive cost of providing audited financial statement that meet requirements of IASB (International Accounting Standards Boards) is a common problem of a firm. Secondly, because financial statement based on a specific time or period, it is historical record of financial status of a firm so it has a little value in predicting and forecasting the future performance of this firmRead MoreA Summary On Financial Management1359 Words   |  6 Pages68 per share, on revenue of $23.5 billion. However, the exclusion of unusual items such as tax benefits, legal expenses, and net reserve releases depressed net income to $5.4 billion, or $1.32 per share. These results surprised analysts as the financial services company failed to thrash the consensus estimate from 29 analysts of $1.38; which led to an immediate plunge of 1.56% in the stock price. Stock Movement: As you can see from the chart above, following the dispursement of the earnings reportRead MoreFinancial Management and Analysis2206 Words   |  9 PagesFinancial Management and Analysis Table of Contents Introduction 3 Presentation of the companies 3 Ratio analysis of the companies 5 Profitability ratios 5 Liquidity ratios 7 Efficiency ratios 9 Gearing ratios 11 Investment ratios 12 Ratio analysis strengths and weaknesses 14 â€Æ' Introduction Financial analysis involves the use of various financial statements, which perform several functions. Basics of financial analysis consist of a balance sheet and income statement.Read MoreFinancial Management2459 Words   |  10 PagesCHAPTER 14 FINANCIAL AND OPERATING LEVERAGE Q.1. A.1. Explain the concept of financial leverage. Show the impact of financial leverage on the earnings per share. The use of fixed-charges sources of funds, such as debt and preference capital, along with owners’ equity in the capital structure is known as financial leverage (or gearing or trading on equity). The financial leverage employed by a company is intended to earn more on the fixed charges funds than their costs. The surplus will increase theRead MoreA Note On Financial Management1753 Words   |  8 Pagescosts as financial specialists would require extra pay to have the stock of the illiquid resources which have higher exchange fetched opposite a fluid resource. The present study looks a t the liquidity of the Government securities market in India. The Government securities business sector is seen as a standout amongst the most imperative money related business sector as it connections monetary action to loan cost. National banks utilize the business sector to perform residential financial operationsRead MoreFinancial Management Paper591 Words   |  3 PagesStatement of Operations and Financial Statements 1. List several efforts that have been enacted by payors to control costs. 2. Explain the ramifications of allowing/disallowing an individual to be able to sue his or her HMO. 3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations? Financial statements are commonly called balance sheets, income statement, statement of owner’s equity, or statementRead MoreFinancial Management2360 Words   |  10 PagesLesson # 1 Financial Management: Introductory Notes and Words Concepts of Finance and Financial Management Financial Management refers to the proper management of finance functions of an enterprise or organization. In other words, financial management is concerned with the financial decision-making and other financial aspects. Thus, financial management involves financial planning, financial organization, financial coordination and control, financial reporting, financial mergers, combinationsRead MoreA Research On Financial Management1461 Words   |  6 Pagesdescribes on the first section a research about financial managers, which is covered with the job description, the roles, the skills Knowledge, work environment and the rewards job outlook. What is the financial management? â€Å"Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise† Read MoreFinancial Manageme nt Of The Healthcare Organization1371 Words   |  6 PagesFinancial Ratios Analysis Raven Washington MHA 612: Financial Managerial Accounting Professor Jack Lazarre October 27, 2014 The financial management of the healthcare organization needs to handle financial matters carefully in order to perform well. Ratio analysis is a kind of financial statement analysis that is utilized to get a fast indication of an organizations financial performance in most important sectors, for that reason the healthcare organization must utilize ratioRead MoreFinancial Management And Efficient Planning1373 Words   |  6 PagesFinancial management and efficient planning are important in determining the sustainability and the mission of a business. A company can know its organizational performance, financial results, and trends by using its financial statements. Conducting a ratio analysis through ratio calculation is vital. Ratios calculation is a useful tool of management because ratios are critical indicators of financial strengths and weaknesses and thus the basis of the overall situation analysis. Some of the significant