Financial Management Archives

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.

Capital Budgeting

by Ben JanseFinancial ManagementSeptember 15, 2020September 15, 2020

Capital budgeting is the process of evaluating large investment opportunities to get the best return possible.

Discounted Dividend Model (DDM)

by Daniela AvendañoFinancial ManagementAugust 26, 2020August 26, 2020

The Discounted Dividend Model (DDM) is a quantitative method for valuing the price of the shares of a company.

Capital Asset Pricing Model

by Daniela AvendañoFinancial ManagementMay 6, 2020August 26, 2020

The Capital Asset Pricing Model (CAPM) is a model used to calculate the return that an investor should demand when making an investment, based on the risk.

Financial Modelling

by Ben JanseFinancial ManagementApril 6, 2020July 16, 2020

Financial modelling is the process of developing a financial representation of a company’s performance through modelling.

Financial Forecasting

by Ben JanseFinancial ManagementMarch 17, 2020July 16, 2020

Financial Forecasting is the process or processing, estimating, or predicting a business’s future performance.

Debt Ratio Analysis

by Jessie SariFinancial ManagementFebruary 21, 2020July 16, 2020

A debt analysis is defined as an expression of the relationship between a company’s total debt and its assets. It is a measurement for the ability of a company to pay its debts. It indicates what proportion of a company’s financing consists of debts. This makes it a good way to check the company’s long-term solvency. In general a lower ratio is better.

Auditing

by Ben JanseFinancial ManagementFebruary 2, 2020July 16, 2020

An audit is a systematic and independent inspection of an organisation’s books, accounts, legally required record keeping, documents, or vouchers in order to determine to what extent financial and non-financial documents offer an accurate account of reality.