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Financial Management

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

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.

Absorption Costing explained

September 8th, 2023

Absorption Costing: This article explains Absorption Costing in a practical way. In addition to explaining what is and means, this article also highlights three different types and an extensive calculation example including formula. After reading you will understand the basics…

Capital Asset Pricing Model (CAPM)

August 31st, 2023

Capital Asset Pricing Model (CAPM): This article explains the Capital Asset Pricing Model or CAPM in a practical way. This article contains the definition of the Capital Asset Pricing Model, its formula, a Capital Asset Pricing Model example and practical…

Financial Modeling explained

August 29th, 2023

Financial Modeling: this article provides a practical explanation of financial modeling. After reading, you will understand the basics of this powerful financial management tool. What is Financial Modeling? Financial Modeling is the process of developing a financial representation…

CAPEX: Capital Expenditure

August 23rd, 2023

CAPEX (Capital Expenditure): This article explains the term CAPEX or Capital Expenditure in a practical way. The article contains information about the meaning of the term CAPEX and how to calculate it, along with examples, its usefulness and the risk…

DuPont Analysis explained

August 20th, 2023

DuPont Analysis: this article provides a practical explanation of DuPont Analysis. This article contains a general definition of the method, the calculation and formula, a practical example and de pros and cons. After reading this, you will understand the…

Beyond Budgeting approach explained

August 20th, 2023

Beyond Budgeting approach: the Beyond Budgeting model aims to realise an organisation that is extremely adaptable. This article provides a practical explanation of Beyond Budgeting approach. Highlights include: what is beyond budgeting, beyond budgeting vs traditional budgeting, 12 principles of…

Solvency Ratio explained

August 15th, 2023

Solvency Ratio: This article explains the Solvency Ratio in a practical way. This article contains a general explanation of the solvency ratio, the formula and practical application. Enjoy reading! What is the Solvency Ratio? The solvency ratio of an organization…

Discounted Dividend Model (DDM)

August 15th, 2023

Dividend Discount Model: This article explains the Dividend Discount Model (DDM) in a practical way. The article starts with a general defintion of the DDM, followed by some general information about why this model is important and why it is…

Total Cost of Ownership (TCO)

August 12th, 2023

Total Cost of Ownership (TCO): in this article, Total Cost of Ownership (TCO) will explained in practical terms. It describes what TCO is, what usability is and how service life is determined. After reading you will understand the basics of…

Investment Management explained

June 24th, 2023

Investment Management: in this article you will find a practical explanation of investment management. This article explains Investment Management in general and provides its different elements and styles, externalities and performance measurement. After reading, you will understand the importance…

Current Ratio plus formula explained

June 20th, 2023

Current Ratio: this article explains the Current Ratio in a practical way. The article starts with the general definition and meaning of the current ratio, followed by the formula that belongs to it, and a practical example. You will also…
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