Financial knowledge is essential for every entrepreneur. There are certain basics which are listed in this presentation. Hope it will add value...
Thanks...
Importance of financial management
Overview of Financial Management
Time Value Of Money
Cost of capital
International Financial Management
Return and Risk
Valuation of financial instruments
Basic principle of financial statement analysiskhomsasatun
the basic principle of financial statement analysis. purpose's analysis, method of financial statement analysis, and technic of financial statement analysis
Business Finance: Introduction to Business Finance, Meaning and Definition of Financial Management, Objectives of Financial Management- (Profit Maximization and Wealth Maximization), Modern Approach to Financial Management- (Investment Decision, Financing Decision, Dividend Policy Decision), Finance and its relation with other disciplines, Functions of Finance Manager
Importance of financial management
Overview of Financial Management
Time Value Of Money
Cost of capital
International Financial Management
Return and Risk
Valuation of financial instruments
Basic principle of financial statement analysiskhomsasatun
the basic principle of financial statement analysis. purpose's analysis, method of financial statement analysis, and technic of financial statement analysis
Business Finance: Introduction to Business Finance, Meaning and Definition of Financial Management, Objectives of Financial Management- (Profit Maximization and Wealth Maximization), Modern Approach to Financial Management- (Investment Decision, Financing Decision, Dividend Policy Decision), Finance and its relation with other disciplines, Functions of Finance Manager
A beginners’ Guide for Financial Statements.
What are the financial statements?
Why financial statements are important?
Types of financial statements? And what is the basic purpose of each financial statement?
Financial Statements are the financial documents providing significant information about the financial activities of the business entity.
This full document shows us the essence of corporate finance - Bachelor - Economics & Finance - Kyungpook National University,Daegu, South Korea - Jean Meilhoc
The presentation focuses on "Finance Function" specifically the following topics: a. the primary goals of business b. the functions of Business Finance and Investment Portfolio c. and the primary activities of Financial Manager.
Ratio analysis advantages and limitations (Complete Chapter)Syed Mahmood Ali
The aim of this PPT's to provide complete knowledge of Ratio Analysis chapter covering all the formula's for any university student of B.com, M.com, BBA and MBA.
Chapter 1 - Overview of Financial Statement Analysis
Solution Manual Wild
Financial Statement Analysis -
f i n a n c i a l
s tat e m e n t
a n a l y s i s
TENTH EDITION
K. R.
SUBRAMANYAM
JOHN J. WILD
Anche tra gli animali c’è il rito del corteggiamento prima delle «nozze»Vita in Campagna
Vi sono specie, invece, soprattutto tra gli uccelli, che inscenano dei veri cerimoniali, un po’ come i corteggiamenti che avvengono tra gli esseri umani: si cerca di essere attraenti e magari si compra qualche regalino da offrire all’innamorata.
Anche in natura c’è chi gioca a nascondino... Scoprite chi!Vita in Campagna
Lo sapete che ci sono animali che a nascondino giocano per tutta la loro esistenza? Beh, a dir la verità, il loro non è proprio un gioco, ma uno stratagemma per salvarsi la vita o per procurarsi il cibo.
Che coraggiosa è mamma anatra! Rischia la vita per i suoi piccoliVita in Campagna
Gli animali adulti provano affetto, se così lo possiamo chiamare, solo quando i piccoli hanno bisogno delle loro cure; una volta che questi sono diventati indipendenti, li ignorano. Ad ogni modo, quando è importante tutelare i figli, anche tra gli animali succedono cose straordinarie.
A beginners’ Guide for Financial Statements.
What are the financial statements?
Why financial statements are important?
Types of financial statements? And what is the basic purpose of each financial statement?
Financial Statements are the financial documents providing significant information about the financial activities of the business entity.
This full document shows us the essence of corporate finance - Bachelor - Economics & Finance - Kyungpook National University,Daegu, South Korea - Jean Meilhoc
The presentation focuses on "Finance Function" specifically the following topics: a. the primary goals of business b. the functions of Business Finance and Investment Portfolio c. and the primary activities of Financial Manager.
Ratio analysis advantages and limitations (Complete Chapter)Syed Mahmood Ali
The aim of this PPT's to provide complete knowledge of Ratio Analysis chapter covering all the formula's for any university student of B.com, M.com, BBA and MBA.
Chapter 1 - Overview of Financial Statement Analysis
Solution Manual Wild
Financial Statement Analysis -
f i n a n c i a l
s tat e m e n t
a n a l y s i s
TENTH EDITION
K. R.
SUBRAMANYAM
JOHN J. WILD
Anche tra gli animali c’è il rito del corteggiamento prima delle «nozze»Vita in Campagna
Vi sono specie, invece, soprattutto tra gli uccelli, che inscenano dei veri cerimoniali, un po’ come i corteggiamenti che avvengono tra gli esseri umani: si cerca di essere attraenti e magari si compra qualche regalino da offrire all’innamorata.
Anche in natura c’è chi gioca a nascondino... Scoprite chi!Vita in Campagna
Lo sapete che ci sono animali che a nascondino giocano per tutta la loro esistenza? Beh, a dir la verità, il loro non è proprio un gioco, ma uno stratagemma per salvarsi la vita o per procurarsi il cibo.
Che coraggiosa è mamma anatra! Rischia la vita per i suoi piccoliVita in Campagna
Gli animali adulti provano affetto, se così lo possiamo chiamare, solo quando i piccoli hanno bisogno delle loro cure; una volta che questi sono diventati indipendenti, li ignorano. Ad ogni modo, quando è importante tutelare i figli, anche tra gli animali succedono cose straordinarie.
L’uovo è fresco o vecchio? C’è un trucco per scoprirlo!Vita in Campagna
Per capire se un uovo è fresco oppure no basta seguire l’esempio delle nostre nonne che, tanto tempo fa, usavano
un metodo molto speciale per distinguere le uova fresche
da quelle più vecchie
Respirate aria pulita o inquinata? Scopritelo con un semplice test!Vita in Campagna
Chi vive in campagna respira aria più pulita e salutare. A volte, però, i fumi nocivi giungono dai centri abitati e contaminano l’aria che ci circonda, anche se noi non lo vediamo!
Osso e cincia e lo strano caso del fantasma del boscoVita in Campagna
Febbraio. Nel bosco di querce vicino alla fattoria la natura
sembrava essersi addormentata. I ghiri ronfavano nelle loro tane, mentre la maggior parte degli uccelli era partita verso sud, lasciando i rami spogli e silenziosi. Eppure, non tutti se ne erano andati, non tutti dormivano.
Create anche voi un giardino delle farfalle pagine dei ragazzi - vita in ca...Vita in Campagna
Non si riesce mai a osservare bene le farfalle! Creiamo un bel posticino tranquillo dove possano nutrirsi e rilassarsi; il vostro giardino potrebbe essere il luogo adatto...
Il presente indice analitico riporta in ordine alfabetico tutti gli argomenti trattati nel 2014 sui Fascicoli Normali,
su «i Lavori», su ciascuna Guida illustrata.
Dopo ogni ARGOMENTO, la prima cifra in neretto indica il numero di Vita in Campagna, l’altra cifra in chiaro
indica la pagina in cui l’argomento è stato trattato. La lettera [R] segnala che l’argomento è stato trattato sotto
forma di risposta a quesito. La lettera [P] segnala che l’argomento è stato trattato sotto forma di recensione
a pubblicazione. Ad esempio: l’argomento ACQUARIO è stato trattato per quanto riguarda «Perché occorre
popolare gradualmente il nuovo acquario» sotto forma di risposta a quesito [R] nel n. 7-8, a pagina 54.
Agriautunno: un’esperienza istruttiva e divertente!Vita in Campagna
Con l'autunno il paesaggio si trasforma a vista d’occhio, ma il meraviglioso mondo della campagna non si ferma e, in modo silenzioso, continua a lavorare per donarci i suoi prodotti.
Defination of Financial Management
Major Areas
Corporates
Corporate Structure
Corporate Objectives & Strategy
Factors influencing Corporate Objectives
Primary vs Secondary Objectives
Strategies(Corporate) / Tactical (Functional)
Role Of a Financial Manager
Working Capital Management: Meaning of Working Capital, its components & types, Operating Cycle, Factors affecting working capital, Estimation of working capital requirement. (Total Cost Method & Cash Cost Method)
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
2. Financial management refers to the efficient and effective management
of money (funds) in such a manner as to accomplish the objectives of the
organization. It is the specialized function directly associated with the top
management. The significance of this function is not only seen in the 'Line'
but also in the capacity of 'Staff' in overall administration of a company. It
has been defined differently by different experts in the field. It includes how
to raise the capital, how to allocate it i.e. capital budgeting. Not only about
long term budgeting but also how to allocate the short term resources like
current assets. It also deals with the dividend policies of the share holders.
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.
FM means planning, directing, monitoring, organizing, and controlling of the
monetary resources of an organization.
WHAT IS FINANCIAL MANAGEMENT??
(DEFINITIONS)
3. TRADITIONAL BUSINESS
Management & Auditor handled entire business
Management
&
Auditor
Sales & Business
Banks
Government
Multi Branches
Family Finance
Foreign Exchange
Group Business
4. CURRENT DAY BUSINESS
Multiple professionals support one business
Core
Business
Call Centre
Auditor
IT Consultant
Secretarial Practice & Compliances
Consultants
& Training
Investment Advisor
8. Working Capital means “the
money required to run the day-
to-day operations of business”
Working Capital is a financial
metric which represents
operating liquidity available to
a business.
The goal of working capital
management is to ensure that
the firm is able to continue its
operations and that it has
sufficient cash flow to satisfy
both maturing short-term debt
and upcoming operational
expenses.
WORKING CAPITAL
MANAGEMENT
10. Manage external commitments with internal resources.
Repetitive Decision Making: Continuous activity and not one
time.
Cannot afford to ignore single aspect/ component of working
capital.
Cost of working capital is higher.
Mis-management of WC has risk of immediate negative effect on
the business.
Current business environment is transparent to every customer/
vendor, leading to poor bargaining power for management.
Stage & size of company is great challenge on WCM.
CHALLENGES IN WCM
11. Cash Management:
Cash budgeting involves estimating the requirements of cash by estimating all the fore
coming receipts and payments (Float Management – Reconcile with bank balance).
Cash discounts: Both to accelerate collection and early payments.
Maintain Optimum Cash (Not Less & Not More).
Inventory Management:
Fixing Inventory Levels by Classification based on value & volume (ABCD).
Just in Time
Enhanced forecast accuracy and demand planning.
Debtors & Creditors Management:
Early reminders/dunning cycles: Early reminders and short dunning cycles thus have a
direct impact on late payments.
Back-to-back agreements Balancing the due dates of receivables and payables helps
to avoid excessive pre-financing of suppliers and can even lead to a positive cash
balance.
Factoring/ Discounting.
Disciplined credit policy (Payment & Collection).
Customer/ Vendor evaluation.
Variance Management – Review every event in WC to address the change.
(As Warren Buffett told “Don’t lose money” “Don’t forget Rule No.1”).
TECHNIQUES TO MANAGE
WORKING CAPITAL
12. Rule 1: Long term applications (LTA) are to be financed through
Long Term Sources (LTS) only.
Rule 2: Long Term Applications (LTA) should not be financed
through Short Term Sources (STS).
Rule 3: Short Term Applications (STA) should be funded through
Short Term Sources (STS).
Short Term Applications (STA) can be funded by Long Term
Sources (LTS). (???)
Note: The above rules are applicable for funds generated externally &
internally.
RULES OF FINANCING
13. Cost Accounting arose at the height of the industrial
revolution when businessmen wanted to know what was the
cost of producing a product or rendering a service.
Objectives of Cost Accounting:
Ascertainment of Cost (at all levels)
Cost Control
Cost Reduction
Decision Making
Pricing
Methods of Ascertaining Cost:
Traditional Costing Methods
Modern Costing Methods
Hybrid Method
COST MANAGEMENT
14. Identify Product/ Unit cost taking into account administrative OH, Capacity
utilization, etc.
Ascertain OH absorption if Standard Costing is followed and arrive at
variance.
Product cost monitoring should be made every shorter time possible
(monthly, weekly, batch wise, etc).
Monthly Costing P&L should be prepared.
Costing should be separate function in the organization.
Review of cost drivers and assumptions in costing on a reasonably
intervals.
Cost comparison should be a continuous process (with historical cost,
competitor cost, industry cost, etc).
Pricing & Costing Method Relationship (cost plus pricing, competitor
pricing, regulated pricing, etc).
ATTRIBUTES TO BETTER
COST MANAGEMENT
15. Methodical control of an
organization's operations
through establishment of
standards and targets
regarding income and
expenditure, and a
continuous monitoring and
adjustment of performance
against them.
Budgetary control is the way
of controlling organisation
in which different budgets
are made and with these
budgets, organisation finds
its weak points and then it
improves these weak points.
Budget is Management’s
Commitment.
BUDGET & MONITORING
18. Objective: Have to set the objective first
Understanding of Cost Behavior : Need to understand
different elements of costs attached with
Forecasting: Of market, customer preference, competitor,
Govt policies
Coordination: Between each department, different level of
Mgt
Communication & Reporting: Between divisional and
functional Manager
Flexibility: Must have a scope for Adjustment based on
actual situation
Accounting data support: Past data if available.
Use appropriate budgeting method. If new, use Zero Base
Budgeting.
ESSENTIAL ELEMENTS OF
BUDGET
19. The process of evaluating businesses,
projects, budgets and other finance-
related entities to determine their
suitability for investment. Typically,
financial analysis is used to analyze
whether an entity is stable, solvent,
liquid, or profitable enough to be
invested in.
Some important ratios for analyzing
performance of a company:
Operating profit margin
Net profit margin
Return on Capital Employed
Current Ratio
Debt Equity ratio
Interest coverage ratio
Earnings per share
Price Earnings ratio
Return on Net worth
FINANCIAL STATEMENT
ANALYSIS
20. Operating profit margin
Indicates the business profitability
OPM = EBITDA / Operating Income (or Net Sales)
Net profit margin
Indicates the returns generated by the business for its owners
NPM = PAT / Operating Income (or Net Sales)
Return on Capital Employed
Indicates true measure of performance of an enterprise
The capital employed in business is Equity capital, reserves and surplus,
long term debt and short term debt.
Returns generated for all these providers of capital is EBIT.
ROCE = EBIT / (‘Networth’ + ‘Total Debt’)
The ratio is independent of the industry, capital structure or asset
intensity.
Interest coverage
The ratio indicates the cushion the company has, to service its interest
Interest coverage = EBITDA / Interest cost
Higher the ratio, better it is for the lenders
For healthy companies, Interest coverage ranges from 2.0x to 8.0x.
RATIOS
21. Debt Equity ratio
The ratio of borrowed funds to owners’ funds
D:E ratio is also known as ‘gearing’, ‘leverage’ or ‘capital structure’
Gearing = (Long term debt + Short Term debt)
(Equity capital + Reserves & Surplus)
For most manufacturing companies, D:E less than 2.0x is considered
healthy.
Current ratio
This is a commonly used ‘liquidity ratio’, used by banks that lend for
‘working capital’
Current ratio = Current Assets
Current liabilities + Short term debt
The ratio indicates the ratio of short term assets to short term
liabilities.
Indirectly, the ratio also indicates the proportion of long term assets
funded by long term liabilities.
For solvent companies, current ratio ranges between 1.2x to 2.0x.
RATIOS
22. Earnings Per Share (EPS)
The Profit earned by the company for each share in the share capital
of the enterprise
EPS = Profit After Tax
Number of Equity shares outstanding
Price - Earnings Ratio (PE)
The ratio of current market price of the equity share to the annual
earnings per share
PE = Current Market Price per share
Earnings Per Share (EPS)
PE is expressed in ratio or times.
When EPS is negative, PE is meaningless.
RATIOS
24. At a fundamental level, there are two types of accounting
information:
Financial Accounts
Management Accounts
Financial accounts are geared towards external users of
accounting information (i.e. investors, industry commentators
and government agencies), whereas management accounts are
geared towards internal users of accounting information.
Profit & Loss Account
Balance Sheet
Cash Flow Statement
Management Accounts are used to help management record,
plan and control the activities of a business and to assist in the
decision-making and decision taking processes. They can be
prepared for any period of time such as daily, weekly, monthly or
yearly.
ACCOUNTING OVERVIEW
25. Objectives of MIS & Reports
Efficient Decision Making
Compile Information on a Timely basis
Effective Tool for Planning
Support of its business process and
operations
Support strategies for competitive
advantage
Means to create MIS & Reports
Accounting Software/ ERP
Separate MIS Software/ BI Tool
Excel based reports
MIS Process:
Collection
Organization
Distribution
Storage of wide information
Managerial control & analysis of data
MIS & REPORTS
27. Business risks implies uncertainty in profits or danger of loss
and the events that could pose a risk due to some unforeseen
events in future, which causes business to fail.
Business risks can be classified by the influence by two major
risks: internal risks (risks arising from the events taking place
within the organization) and external risks (risks arising from
the events taking place outside the organization).
Major Types of Risk:
Strategic Risk
Financial Risk
Operational Risk
Compliance Risk
INTERNAL CONTROLS &
RISK MANAGEMENT
29. Techniques for Identifying Risks:
Brainstorming
Event inventories and loss event data
Interviews and self-assessment
Facilitated workshops
SWOT analysis
Risk questionnaires and risk surveys
Scenario analysis
Using technology
Other techniques
Risk handling can be classified into 4 ways:
Avoid
Transfer
Mitigate
Accept
RISK MANAGEMENT
31. STATUTORY COMPLIANCE
I don’t know
which laws are
applicable
How to make
compliances
on time?
I am bored
of
Stereotyped
Compliance
system
Appoint
compliance
consultant for
HR,
Registrations,
VAT, ED, Tax,
etc.
Conduct yearly
audit to asses
the applicability
of compliances.
Direct
management
involvement
necessary.
33. CORPORATE GOVERNANCE
Clause 49 of Listing
Agreement:
“ The Board shall
periodically review
compliance
reports of all laws
applicable to the
company,
prepared by the
company as well as
steps taken by
the company to
rectify instances of
non-compliances.”
Product
Profile
Factory
Location
Sector
Segment
Transaction
Employees
34. COMPANY POLICIES
OPERATIONAL PLANNING AND EXECUTION
DIR A DIR B DIR C DIR D DIR E
BOARD OF
DIRECTORS
CORPORATE
PLANNING
LEGAL
FINANCE AND
ACCOUNTS
HUMAN
RESOURCES
CORPORATE
COMMUNICATION
PRODUCTION
AND OPERATIONS
MARKETING
INFORMATION
TECHNOLOGY
DEPARTMENTS IN A COMPANY
EXTERNAL STAKEHOLDERS
Company Secretary
INVESTORS
GOVERNMENT AND
REGULATORS
SOCIETY
SUPPLIERS
CUSTOMERS
LENDERS