Easy way to learn financial management

1. Financial Management
PREPARED BY: Arpan Chattaraj

2. Financial management refers to the efficient and
effective management of money in such a
manner as to accomplish the objectives of the
organization.
INRODUCTION

3. Definition
“Financial Management is the Operational Activity of a
business that is responsible for obtaining and effectively
utilizing the funds necessary for efficient operation.” –
K.D.Willson
“Financial Management is concerned with management
decision that results in acquisition and financing long
term and short term credits for the firm”-- Soloman

4. OBJECTIVES OF FINANCIAL
MANAGEMENT
BASIC
OBJECTIVES
OTHER
OBJECTIVES
• Profit maximization
• Minimization of cost
• Wealth maximization
• Maintenance of Liquid asset
• Fair return to shareholders
• Reserves growth
• Maximum operational efficiency
• Ensuring financial discipline

6. Scope of Financial Management
•Estimating Financial Requirements
•Deciding Capital Structure
•Selecting a source of Finance
•Selecting a pattern of Investment
•Proper Cash Management
•Implementing Financial Controls
•Proper use of Surpluses

7. Functional Areas of Financial
Management
•Determining financial needs
•Selecting the source of funds
•Cost-Volume-Profit Analysis
•Functional analysis and Interpretation
•Capital Budgeting
•Working Capital Management

8. Role of Financial Managers
•Business forecasting
•Designing the capital structure
•Determination of financial objectives
•Estimation of the capital requirements for business
•Determination of the proper sources of funds
•Profit planning
•Investment decisions............