Financial management slideshare. Average amount locked up in stock: per annum Rs.

Financial management slideshare "Planning is an inextricable dimension of financial management. Understand the basic responsibilities of financial managers and 3. Selvaraj, M. 10Rakesh Kumar Singh Yield to Call For calculating the yield to call, the call period would be different from the maturity period and the call (or redemption) value could be different from the maturity value. When this approach is applied exclusively for financial matter, it is termed as financial planning. It means the employment of assets or funds for which the firm pays the fixed cost or 6. APPROACH 1: TRADITIONAL APPROACH TO FINANCE FUNCTION During the 20th century, the traditional approach was also known as corporate finance. Capital budgeting techniques include non-discounting methods like payback period and 4. To pay salaries, wages and incidental charges. Institutional Arrangements • The institutional arrangements refer to the delegation, distribution, or sharing of power related to growth management decision-making and FINANCIAL LEVERAGE Financial leverage is defined as the degree to which a firm uses fixed financial costs to magnify the effects of the firm's returns. 3 1-11 Financial Manager • Financial managers try to answer some, or all, of these questions • The top financial manager within a firm is usually the Chief Financial Officer (CFO) – Treasurer – oversees cash management, credit management, capital expenditures, and financial planning – Controller – oversees taxes, cost accounting 56. •Budget is a financial plan and a list of all planned expenses and revenues. Implementing Financial Controls: An efficient system of financial management necessitates the use of various control devices. It discusses key objectives of financial management like maximizing shareholder value. To ensure optimum funds utilization. N. A Brief History. Operating Cycle Operating cycle is the time duration required to convert sales, after the conversion of resources into inventories, into cash. It defines the roles of finance and accountings, different business organizations like 2. Long-term decisions include financing, investment, and dividend policy decisions. It has three key elements: financial planning/budgeting, financial control, and financial decision-making regarding investments and financing. The expected annual income of a company is company is Rs. It focuses only on one 3. Learning Objectives • Discuss the role of time value in finance and the use of computational aids used to simplify its application. Investment decisions involve determining optimal asset levels and specific assets to acquire or reduce. 11. References Hanlon JJ, Pickett GE. It is the duties of financial managers in a business firm. e. Internal Sources Sale of Stock This money comes in from selling off unsold stock This is what happens in the January sales It is when the profits made are ploughed back 9. 2) The finance manager's role in raising funds, allocating funds, and profit planning. 4. It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new The document discusses several key topics in financial management: 1) Financial goals like profit maximization, maximizing earnings per share, and shareholder wealth maximization. Scope Contemporary issues in financial management 05-04-2016 BCH 505 PROJECT FINANCE BY DR N R KIDWAI, INTEGRAL UNIVERSITY 1 2. Financial Management is a careful 5. B. 15. financial management is no longer the sole purview of the finance department. DEPARTMENT OF EDUCATION • FMOM as support for process effectiveness and efficiency Maintaining a solid and operative Public Financial Management system 3. Average amount locked up in stock: per annum Rs. All the decisions with respect to new projects, acquisition of assets, raising capital etc are studied for their impact on profits and profitability. Day 1 and 2 focus on technical audit skills, day 3 covers enterprise risk management, and days 4 and 5 discuss financial audits and auditing financial statements. Since share has two types therefore equity finance may be Common Equity or Preference Equity. 4th ed. The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. 3Failing to plan is planning to fail Understanding the Financial Management System Blocks Accounting Records This is about keeping an accurate and complete record of all 3. 23. Capital Budgeting: principles and techniques Nature of capital budgeting Identifying relevant cash flow Evaluation techniques: Payback period method, Accounting rate of return, Net present value, Internal rate of return and Beating Inflation Comparative Growth Rates of Financial Assets Jan 1987 – Dec 2000 Ave After tax Value of PhP 10,000 % Return per yr at 31 Dec 2000 T-Bills 12. It discusses the three main decision areas that financial managers deal with: investment decisions, financing This document provides an overview of the nature of financial management. Construction Financial Management 7 Contents 8 S-Curve and Working Capital Financing of a Construction Project 102 8. The key functions of financial management - investment, financing, dividend and liquidity decisions - are explained. Identify the goal of the firm and understand why 2. The value of an asset should be viewed in terms of benefits it can produce over the cost of capital investment. Management of Accounts 2. CHETHAN. " By James Van Horne. It also outlines the Organization of the Financial Management Function • In large firms, the finance function is the responsibility of the vice president of finance, or chief financial officer (CFO), Financial Management by GOB Any public procurement in Bangladesh is regulated by Public Procurement Act-2006 and Public Procurement Rule-2008 to regulate transparency of financial activities. Emergence of Fintech In the 21st Century, Fintech was initially applied to the technology employed at the back-end systems of established financial institutions. It discusses what financial management is, forms of business 3. Excess AR involves capital cost, default, collection cost etc. It is 8. Short Term Financial Management Transporting products over long distances often results in delays, confusion, damage, theft, and other difficulties. The investment decision involves 10. The ready to use financial planning PowerPoint complete deck includes various slides such as financial management goals, objectives, US financial system, financial instruments, rights issue, debenture, time value for money 7. • The fixed financial charge appears in case the funds requirement of the firm is partly financed by the 5. Working Capital Management 31-08-2016 BCH 505 PROJECT FINANCE BY DR N R KIDWAI, INTEGRAL UNIVERSITY 5 working capital management involves the It is classified into long-term and short-term financial decisions. Phil. The term financial management connotes that funds flows are directed according to some plan. It outlines reforms under the This document provides an overview of topics that will be covered in a financial management course, including definitions of key financial terms, the responsibilities of financial managers, capital budgeting techniques like net 10. To purchase raw materials and other materials. The key activities include investment decisions, financial decisions, and dividend decisions. 5) The curse of competitive 4. Financial management deals 28. It involves three main decision functions: investment decisions 2. Broadly speaking, financial managers have to have decisions regarding 4 main topics within a company Investment decisions / Capital Budgeting Decision - (long and The major areas of finance are: – Financial services and – Managerial finance/corporate finance/financial management. Financial Leverage • The Financial leverage may be defined as a % increase in EPS associated with a given percentage increase in the level of EBIT. Factors Affecting Investment Decision Cash flow of the venture: When an organization starts a venture it invests a huge capital at the start. Budget cover a stipulated time period- usually a year. Differences between management accounting and financial accounting Characteristic Financial accounting Management accounting User Report is utilized by external users such as shareholders Report is normally The document discusses various aspects of financial management in education, including management of accounts receivable. Financial management: Financial Management means the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the 3. It does not show the cost and profit for individual products, processes or departments, etc. PROFIT MAXIMISATION Profit maximization is the traditional approach and the primary objective of financial management. Once the funds are procured, they should be utilized in maximum possible way at least cost. In financial management leverage analysis means arranging fixed assets in such a way that fixed return is ensured. It is concerned with raising financial resources and using them Finance involves managing money and making decisions about assets and investments. , M. The type of finance collected through shares is called equity finance while the type collected through bonds is called debt finance. Share has two types, common shares and preference shares. Arrangement of funds from financial instruments such as shares, bonds etc Looking after the legal and accounting relationship between a corporation and its sources Financial management concerns the acquisition, financing, and management of assets to achieve overall goals. 5. 3/15/2016 3 8. The instruments of financing, the institutions and procedures used in capital markets, and the legal aspects of This document discusses the concepts of finance, financial management, and the objectives of financial management. To ensure an adequate Financial management involves planning, organizing, and controlling financial resources to meet organizational goals. Unit-1 International Financial Management Overview, Nature & scope of IFM, factors leading to fast strides in international financial functions, MNC-the key participant in International financial functions, International Financial management deals with planning and controlling a firm's financial resources. Proper Cash Management: Cash management is an important task of financial manager. In each 7. Objectives of Financial Management To ensure regular and adequate supply of funds to the concern. The document provides an overview of key financial management concepts for cooperatives, including cost of capital, capital budgeting techniques, and relevant costing. DEPARTMENT OF EDUCATION 3 Development of the Financial Management Operations Manual (FMOM) is a Department of Education project with support This document discusses key topics in health care financial management including lowering costs, goals of the health care system, and changing methods of financing and delivery. , Assistant Professor, Email: snselvaraj66@gmail. That is, Financial Management is the effective and efficient management of a firm’s funds. It discusses the role of financial managers in implementing a Financial management involves planning, acquiring, and managing funds to maximize the value of a firm. Financial accounting shows the profit / loss of the business as a whole. • Meaning of financial management: – Financial The document discusses various aspects of financial management including its definition, scope, traditional and modern approaches, functions, objectives, and sources of finance. Epidemiology and management of HEALTH CARE. 8,000 INTRODUCTION Finance Finance is defined as the provision of money at the time when it is required. INTRODUCTION Budget is defined as a statement of anticipated results during a stipulated period expressed in financial and nonfinancial terms. It discusses the goals of the firm, legal forms of business including sole proprietorships, partnerships, limited liability companies, and Showcase the scope of financial management with this content ready Financial Management PowerPoint Presentation Slides. A. INTRODUCTION- The finance manager concerned with the investment decision , popularly known as capital budgeting decision, require comparison of cost against 3. This 5. What is Personal Finance • Personal finance is the financial management of an individual or family. • This includes budgeting, investments, and retirement planning. Dividend policy: Ploughing back 6. – Financial management is an area of financial decision making. Time Value Of Money The Interest Rate Which would you prefer -- $10,000 today or $10,000 in 5 years? Obviously, $10,000 today. 3 Financial Management for Different Sectors “The difference between financial management in the public and private sectors is that in public agencies you get a bag full of 8. Nature & Scope • Finance function of a multinational firm has two functions namely, treasury and control. - The objectives of financial 5. Even so, the organization The document introduces key concepts in financial management including the role of the financial manager, types of business organizations and financial markets, and goals of financial management. The operating cycle of a manufacturing company involves three phases: Acquisition of resources such as raw material, labour, power and fuel etc. com Page 4 Evolution of Financial Management Traditional Phase Financial audit - Download as a PDF or view online for free. Good Financial management by the event company will ensure that quote given to the client at the beginning will at least cover the expenses incurred in staging The theory applies to financial securities, and it makes the following assumptions: When a currency is converted into another, or when a financial security is bought or sold, there are no costs involved. Nurse managers are being held responsible for the financial management of their units, pharmacy directors are making significant financial management decisions on a daily basis, operating room (OR) managers must maintain efficient utilization rates and keep patients flowing through the Financial management involves planning, organizing, and controlling a company's financial resources and activities. In General Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. Purpose of Finance: To purchase land, building, machinery and equipment. Financial Markets are composed of all institutions and procedures for bringing 4. Risk & return: CAPM / SMLInvestment returnsThe rate of return on an investment can be calculated as follows:(Amount received – Amount invested)Return Financial Environment Businesses interact continually with the financial markets. Budget should provide sound financial management by focusing on requirement of the organization. Financial This document provides an overview of key concepts in corporate finance including: - Definitions of finance, business finance, and financial management. To ensure adequate returns to the members which will depend upon the earning capacity of the cooperative. It also covers strategy formulation, Porter's five 3. Public Health – Administration and Practice. 1 FINANCIAL PLANNING AND MANAGEMENT Financial Management is a process that Working Capital Management Management of Accounts Receivable (AR): AR should not exceed more than 15% of the total sales. . To ensure safety on 3. United Kingdom: LEVERAGE ANALYSIS It may be defined as the employment of an asset/source of funds for which the firm has to pay a fixed cost, or fixed return. DIFFERENT TYPES OF RISK – TURNBULL REPORT Financial derivatives are contracts on the price of certain financial instruments or market rates, such as foreign 6. 2nd ed. This approach was initiated to procure and manage funds for the company. • Financial leverage emerges as a result of fixed financial charge against the operating profits of the firm. So, it is rightly said to be the lifeblood of an enterprise. It outlines the 2. It describes the This document provides an overview of key concepts in financial management. Short-term decisions include liquidity management to ensure sufficient 5. It discusses the four basic areas of finance - corporate finance, investments, financial institutions, and international finance. It is a sub-discipline of the wider task of managing risk, that is, 1. The key financial questions that FINANCIAL MANAGEMENT DEFINITION: - JOSEPH & MASSIE “ financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient 11. The 3. 24Rakesh Kumar Singh Present Value and Rate of Return A bond that pays some specified amount in future (without periodic interest) in exchange for the current price today is called a zero-interest bond or zero Describe "financial management" in terms of the three major decision areas that confront the financial manager. Returns to shareholders can be in recurring form i. They shifted to more consumer-oriented services. Financial Planning in Community Pharmacy • The financial section in a business plan of a community pharmacy gives a financial view of the services being offered. Strategic Financial Management Strategic financial management refers to both, financial implications or aspects of various business strategies, and strategic management of 21. Definition of Budget •Budgeting is a management tool for planning and controlling future activity. AREAS OF FINANCE Public finance deals with the transactions relating to public expenditure, revenue and Deals with procurement and management of funds needed for The objectives of financial management are to maximize profitability, liquidity, efficiency, return on capital, and growth for businesses. Standard deviation measures the stand-alone risk of an investment, while beta measures the risk relative to the overall market. Mumbai (INDIA): Vora Medical Publications;2014. Three essential steps in the control process include standards, comparing results with standards and taking the required corrective action. 3) Cash - not profits - is king. Financial management is all about obtaining funds and how to use that fund. Net present value method It recognizes the impact of time value of money. S Department of Management, AIGS 1 - UNIT-2 COST OF CAPITAL • Meaning of capital:- Capital refers to cash or goods used to generate income either by investing in a business or a different income property. Understand the potential problems arising when management of the corporation and ownership are separated (i. If The document introduces various topics in corporate finance and financial management. The key responsibilities of an international financial manager include: 1) Making investment, financing, and dividend decisions while considering additional factors like exchange rates, inflation risks, and tax rates 2. USA: Times Mirror; 1979. From the following estimates, calculate the average amount of working capital required. Then they also includes more different sectors and industries such as education, retail banking, fundraising and non-profit, and investment management to 2. Financial management is that managerial area which is concerned with the planning and controlling of the firm's financial resources. Finances are the lifeblood of the organization that allows it to live and develop. • In narrow sense, cash is very important business asset, but although coin and paper currency can be handled, the major part of the cash of most enterprises International financial management deals with planning and managing financial operations of international activities of an organization. Proper financial management ensures accountability, viability, and effective use of 3. It outlines the objectives of NPO accounting as 2. To study the procurement of financial Management the following three points were used (i) Institutional sources of finance. , agency problems). • In other words, In connection with any business enterprise, it refers to the process of estimating a firm’s financial requirements and determining 3. You already recognize that there is 6. the owners of the business. p. Value maximization has been the focus of financial management, since the It then defines international financial management as managing the financial functions of a business's international operations. Shareholders’ wealth means returns to shareholders i. Concept of cash • Cash may be interpreted under two concepts. Contents • Introduction of Manufacturing Company • Overview of Financial Management • Who is a Financial Manager? • Types of Financial Managers • Roles and Responsibilities of Financial Managers • Skills required for Financial Manager • Some necessary examples • Bibliography 5. THE FIVE C’S OF CREDIT Capital Character Collateral Capacity The document discusses inter-governmental relations and financial management between national and local government agencies in the Philippines. Traditional phase • The focus of financial management was mainly on certain episodic events like formation, issuance of capital, major expansion, merger, reorganization, and liquidation in the life cycle of the firm. CONTENT Principles of working capital Concepts, Needs, Determinants, issues and estimation of working capital Accounts Receivables Management and factoring Inventory management Cash management PRICIPLES OF BUDGET 1. This part of the process involves identifying and prioritizing the financial risks facing an This document summarizes key topics from Chapter 1 of the textbook "Financial Management: Theory and Practice". "Financial management is that activity of 2. 2) Time value of money. It is considered as the best method of evaluating the capital investment proposal. Example: Showcase the scope of financial management with this content ready Financial Management PowerPoint Presentation Slides. ) Step 2: Prepare Pro Forma Financial Statements Pro forma financial statements help forecast a firm’s asset requirements . Financial planning is crucial for businesses to The document discusses various aspects of financial management including its objectives, scope, sources of finance, and types of shares. International financial management International financial management, also known as international finance is the management of finance in an international business environment; that is, trading and making money 29 Financial Management Axioms 1) Risk - return trade-off. Goals of Financial Management Wealth Maximization: The wealth maximization (also known as value maximization or Net Present Worth Maximization) is also universally accepted criterion for financial decision making. 2. Steps in financial planning • Our third step is processing and analyzing the information gathered. BudgetBudgets are important tools that can be used to create comparisons, analyses, and help manage your organizationBudgets are changeableIf your organization's actual revenues and expenditures are widely different from your budget, you need to determine the reason for the differencesFinancial StatementsA variety of financial statements and reports 4. 7. CONTINUED 4. DEFINITION OF FINANCIAL MANAGEMENT • The term financial management has been defined by Solomon, “It is concerned with the efficient use of an important economic Financial management of agribusiness Balance Sheet Or Net Worth Statement More specifically it is a statement of the financial position of a farm business at a particular time, showing its assets, liabilities and equity. In Financial Management students are introduced to concepts and tools that enable them to think critically about the financial opportunities and challenges What is Financial Management? Financial management is planning, directing, monitoring, organising and controlling the monetary resources of an organisation Financial management is the management of the finances of a This document discusses the financial management and accounting practices of non-profit organizations (NPOs). 22 49,885 $ It defines investment returns as the financial results of an investment expressed in dollar or percentage terms. Accounting Policies 2. dividends; and in the form of capital appreciation of their investments. Management accounting: Management accounting takes data gathered by the financial accounting process, compares the results with the budget and then analyze the information for Financial management involves planning and controlling a company's finances to achieve its objectives. 1 Accounting convention The accounts of the grant Receiver should be prepared under the historical cost convention. Nature of Financial Management Company (Revenue in billion) Recent Investment Decision Recent Financing Decision Boeing ( $61) Began production of its 787 6. Investment risk is the probability that the actual return will be lower than expected. To The document provides an overview of financial management. Expected Risk and Preference A risk-averse investor will choose among investments with the equal rates of return, the investment with lowest standard deviation. • Objective Under a School-Based Management System (SBM), management of resources, particularly financial assets, is an essential part and a very critical process. It 2. Financial Buzz Words: A plan for saving, borrowing and spending. Many businesses invest their excess cash in short-term low-risk marketable securities in higher return alternatives, so that investment income may earned until the 4. Though it was a branch of economics till 1890, as a separate managerial area 4. 70,000. 9. It is Scope of financial management Financial Management is a sub-system in an organization which has to coordinate with other subsystems such as production, CHAPTER 10: CONSUMER MATHEMATICS : FINANCIAL MANAGEMENT 10. It discusses key concepts like the role of the finance manager, shareholders' wealth maximization Financial management aims to maximize shareholder wealth through investment analysis, working capital management, capital structure decisions, and dividend policy. Financial Management S. It defines an account receivable as an 5. 1 MBA - II Semester Paper code: MBAC2001 Financial Management Objectives ӹӹ To know the various sources of finance ӹӹ To understand the various uses for finance and ӹӹ To familiarize oneself with the This document provides an overview of key concepts in corporate finance and financial management. 4) Incremental cash flows count. We will undertake a review of the following: Our client’s financial This document provides an overview of strategic financial management. Specifically, it defines financial 26. It involves three main functions: investment decisions, financing decisions, and dividend decisions. The Objectives of Financial Management The goal of financial management is to enrich the shareholders by maximizing their wealth. Every enterprise, whether big, medium , or small needs finance to carry on its operations and to achieve its targets. 22. Find out the amount of capitalization if the rate of return by capital employed by similar companies is 7. It is concerned with managing a company's financial resources and is responsible Budget – It is a document that projects the costs, and in many cases the revenues, of defined activity, program or project, or organization – A good budget is a fundamental tool 17. The ready to use financial planning PowerPoint complete Developing a Long-Term Financial Plan (cont. 1 Introduction 102 8. Public Financial Management PFM is an interdisciplinary field PFM is the management of government finances (expenditures & revenues) through institutions (laws, 3. Concept and Significance • The dividend decision is one of the three basic decisions which a financial manager may be required to take, the other two being the investment decisions and the financing decisions. The key elements of financial management include investment decisions, financing decisions, and dividend decisions. 3. Traditional Approach Financial management was considered as corporation finance According to this approach ,the scope of finance is restricted to “ procurement 4. Introduction The cost of capital is the cost of a company's funds (both debt and equity)or,from an investor's point of view "the expected return on a portfolio of all the company's existing securities". Oxford Textbook of Public Health. COMMUNITY PHARMACY MANAGEMENT Financial Management Financing is required to set up a new community pharmacy in order to maintain the medicines stock and cover the expenses. It includes: Monitoring: Financial assets are closely monitored to determine if they are being REPORTING STANDARDS OF NONPROFIT ORGANIZATIONS 11 •In order for Board members to make educated decisions – financial information must be: –Accurate 3. The risk management process involves both internal and external analysis. 1. 35. Without funds, the best established organizations will not function. Classification of Finance Finance deals with the requirements, receipts and disbursements of funds in the 24. The budgeting process Financial management involves planning, sourcing, using, and controlling funds to achieve organizational objectives. As opposed to an operational budget that tracks revenue and expenses,a capital budget Definition Managerial activities which deals with planning and controlling of firms and financial sources. It defines cost of capital as the minimum return required to justify an investment. • The approach was mainly descriptive and institutional. Manufacture of the product which includes conversion of raw 5. – The treasurer is responsible for • financial planning analysis 9. Introduction It is the art and science of managing money. 8th ed. The day-to- day transactions should be recorded at the monetary value of the 6. Introduction Financial risk management is the activity of monitoring financial risks and managing their impact. Budget should focus objects and policies of Merits of Wealth Maximization S The wealth maximization objective takes care of the: Shareholder’s interest lender’s or creditor’s interest Worker’s or employees’ interest 2. 2 S-Curve 102 8. It includes financial management, capital markets, and investments. It provides an overview of the evolution of financial management from traditional to modern approaches. Quantitative Methods of Financial Forecasting An example of straight line financial forecasting • A restaurant chain’s annual growth rate has held steady at 5% over the At that time financial management was used in, understanding and managing mergers, preparing feasibilities of new companies or products, and raising finances for new ventures. Detels R, Beaglehole R, Lansang MA, Gulliford M. It includes forecasting, major investment decisions, coordination, control, and risk management. Sathe VP, Doke PP. Moving forward Health system related issues Financing and management issues Stakeholder and networking • Ensuring long term financial sustainability and equity in financing of the UCS • Seeking innovation way to reduce cost of care 3. • Understand the concept of future value, its calculation for a The document discusses various aspects of commercial bank financial management, including analyzing a bank's balance sheet with assets like loans and reserves on the left and liabilities like deposits on the right, how This document provides an overview of financial management concepts across 4 learning objectives. Stock of finished goods and work-in-progress 10,000 Stock of stores, materials etc. Meaning of Financial Planning: Planning is a systematic way of deciding about and doing things in a purposeful manner. MEANING A capital budget is a long-term plan that outlines the financial demands of an investment,development, or major purchase. It includes managing foreign 3. (ii) Issue Financial management involves planning, raising, controlling, and administering funds used in a business. It implies that every decision relating to business is evaluated in the light of profits. He has to assess the various cash needs at different times and then make arrangements for arranging cash. wajjzp uxtb rdjgby msgjgqa wxjww bfmrieb xxb bdyrm ljz aqmnsm