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Financial Management

Financial management is all about efficient and effective management of the monetary resources of an organization.

The objectives of financial management are profit maximization (including maximization of shareholders wealth), financial decision making (future proof) and maintaining proper cash flow.

This all is necessary to secure operations in order to pay the day-to-day expenses, wages, etc. Cash flow is an important indicator on how healthy a company financially is. Next to that, there are a lot of other ratios and financial tools that can help the finance manager to get more grip on financial management. Many theories can be found for the financial area, they are geared towards analysing and calculating business turnovers.

There have been lots of scientific and practical studies on finance and management for a learning point of view.

What are the most known and used financial models and methods? What are their success stories and practical tips when you apply these? These posts are all about great financial management tools.

Financial statement analysis / financial analysis including ratios | ToolsHero

Financial statement analysis

This article explains the Financial statement analysis or (financial analysis) in a practical way. After reading you will understand the basics of this powerful financial management tool. Introduction Financial Statement Analysis (FSA) or financial analysis refers...
activity based management - ToolsHero

Activity based management (ABM)

This article explains the activity based management (ABM) in a practical way. After reading you will understand the basics of this powerful financial management tool. What is activity based management? All organizations want to perform optimally...
Zero based budgeting - ToolsHero

Zero Based Budgeting (ZBB)

This article explains Zero Based Budgeting in a practical way. After reading you will understand the basics of this powerful financial management tool. What is Zero Based Budgeting? Zero based budgeting is a reverse approach of...
Direct costing method definition & example - finance | ToolsHero

Direct costing method

This article explains the direct costing method in a practical way. After reading you will understand the basics of this powerful financial management tool. Introduction direct costing method There are several methods of cost calculations to...
Solvency ratio - ToolsHero

Solvency ratio formula

This article explains the solvency ratio formula in a practical way. After reading you will understand the basics of this powerful financial management tool. What is the solvency ratio? The solvency ratio of an organization gives...
Current ratio - ToolsHero

Current ratio

This article explains the Current Ratio in a practical way. After reading you will understand the basics of this powerful financial management tool. Introduction The current ratio is a calculation formula and liquidity indicator that indicates...
Cash ratio - ToolsHero

Cash ratio

This article explains the cash ratio in a practical way. After reading you will understand the basics of this powerful financial management tool. Introduction The cash ratio is a calculation formula and liquidity indicator (of the...
Quick ratio - ToolsHero

Quick ratio

This article explains the quick ratio in a practical way. After reading you will understand the basics of this powerful financial management tool. Introduction The quick ratio (also known as the quick assets ratio) is a...
Absorption costing - ToolsHero

Absorption costing

This article explains absorption costing in a practical way. After reading you will understand the basics of this powerful financial management tool. What is absorption costing? There are several costing methods that can be used with...
Activity based costing - ToolsHero

Activity Based Costing (ABC)

This article explains Activity based costing (ABC) by Robert Kaplan in a practical way. After reading you will understand the basics of this powerful financial management tool. What is Activity Based Costing? Activity Based Costing (ABC)...

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