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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 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 Asset Pricing Model (CAPM)

May 15th, 2024

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…

Solvency Ratio: the Formula and Basics

May 1st, 2024

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

Investment Management explained

February 1st, 2024

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…

Quick Ratio: Meaning and Formula

February 1st, 2024

Quick Ratio: this article explains the quick ratio in a practical way. Next to what it is (the meaning), this article also highlights the Quick Ratio formula, the interpretation, the main components, benefits of using this ratio an a Quick…

Financial Planning: the basics and process

January 25th, 2024

Financial Planning: this article provides a practical explanation of Financial Planning. Next to what it is, this article also highlights the allocation of resources, the process via Strategic Management, the Necessity and Financial Statements. After reading, you will have…

Activity Based Management (ABM)

January 18th, 2024

Activity Based Management (ABM): this article explains the Activity Based Management (ABM), developed by James Brimson and John Antos in a practical way. Next to what this concept is, this article also higlights the advantages of this method, the…

Direct Costing Method: Summary and Example

January 18th, 2024

Direct Costing Method: this article explains the Direct Costing Method in a practical way. The article contains the definition and basic explanation of this method, including examples of situations where this calculation method is valuable. You will also find advantages…
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