Financial Management Archives - Page 2 of 3

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.

DuPont Analysis

by Ben JanseFinancial ManagementAugust 27, 2018July 16, 2020

DuPont Analysis, also known as the DuPont Identity, is a fundamental framework for performance assessment. Read more about this powerful financial tool.

Beyond Budgeting

by Ben JanseFinancial ManagementAugust 1, 2018July 16, 2020

The Beyond Budgeting model aims to realise an organisation that is extremely adaptable like restructuring the entire organisational structure and implementing a new performance management process.

Net Present Value (NPV)

by Patty MulderFinancial ManagementMay 3, 2018August 6, 2020

The Net Present Value (NPV) represents the Net Constant Value, with which the profitability of an organisation can be easily calculated.

Internal Rate of Return (IRR)

by Patty MulderFinancial ManagementApril 19, 2018July 16, 2020

Internal Rate of Return (IRR) is the expected return on an investment that companies can do. The profitability of potential investments is calculated and the level and timing of the cash flows of both the potential returns of the investment and all the expenditures involved are taken into account.

Inventory count

by Patrick MolemaFinancial ManagementMarch 23, 2018July 16, 2020

An inventory count, or inventory counting, is the physical verification of the numbers and condition of articles that are in stock which is a tool within inventory management.

Break Even Analysis

by Patty MulderFinancial ManagementSeptember 17, 2017July 16, 2020

The Break Even Analysis (BEA) is a useful tool to study the relation between fixed costs and variable costs and revenue.

Gross Margin

by Nawfal JorioFinancial ManagementAugust 11, 2017July 16, 2020

Gross Margin is a key indicator of the profit and loss account. It shows the company’s earnings over a given period.

Cash Flow Forecast

by Nawfal JorioFinancial ManagementMarch 20, 2017July 16, 2020

The Cash Flow Forecast is an essential tool for anticipating the surplus or future cash needs of a business. It’s a key aspect of financial management to avoid a lack of liquidities or, conversely, to avoid having huge amounts of idle cash.

Financial Statement Analysis (FSA)

by Vincent van VlietFinancial ManagementJuly 11, 2014July 16, 2020

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 and investment tool. Introduction…

Activity Based Management (ABM)

by Vincent van VlietFinancial ManagementFebruary 17, 2014July 16, 2020

Activity Based Management enables an organization to control its activities properly, as a result of which performance and customer-orientation are increased.