Financial management is a process that involves planning, directing, and controlling the monetary resources of an organization. Its main goal is to maximize shareholder value. To do this, financial managers carefully monitor and direct an organization’s financial resources. This includes keeping track of cash flows, analyzing financial statements, and making investment decisions. Every financial manager has their own methods and tricks.
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Cash equivalents include short-term (no more than 90 days) engagements “with temporarily idle cash and easily convertible into a known cash amount”. For example, there are such items as money market funds, commercial paper, treasury bills, marketable securities, and short-term government bonds. Explanation: Cash and cash equivalents (CCE) is an...
The use of the FIFO method for inventory valuation improves the net profit margin and current ratio because of the following features of the FIFO method: Under the FIFO method, the prices at which units were most recently purchased are assigned to ending inventory. As a result, ending inventory valued...
The Common Stock of a company has the capacity for providing unexpected future cash flow inflows. Therefore, the stock’s valuation consists of two elements: The dividends that need to be paid each year. The prices investors expect to receive when the stock is sold off at a subsequent date. Hence...
Care Tech is operating in a very sensitive industry, and its success is based on the management’s ability to plan for its resources appropriately. The financial resource management system offers the management unit of this organisation a rare opportunity to understand various forces that may require urgent addressing and those...
The investment process of Numeric involves various strategies that aim at improving the firm’s performance. One of the methods entails the portfolio managers making buy, sell, sell-short, and buy-to-cover decisions. The process was introduced by Numeric’s traders or through the use of electronic trading services. For instance, some of these...
To understand the working principles of the cash flows and their significance, it is vital to refer to the managerial discussion and explanation of this financial statement. In the first place, one of the major aspects is increasing the investment of “$45 million into the meat category.” This matter is...
Data gathering This involves collecting information on your tax returns, income statements, balance sheets, retirement plan documents, insurance policies, bank statements, trusts, wills, and investment policies. During data gathering, your planner will also want to obtain subjective information from you, such as our lifestyle goals, your desired age of retirement,...
The selected company is Nick Scali Limited (NCK), have an active dividend policy before 2011 as its management regularly paid semi-annual dividends to ordinary shareholders. Table 1 indicates dividends paid by the company in the last five years. 2016 2017 2018 2019 2020 Dividend Per Share 0.23 0.34 0.40 0.45...
Numeric can focus on its capacity during its various procedures that involve the use of funds. Resource management can be exercised by analyzing the expenses of the firm and the output. For instance, the stock can be used as one factor that can be analyzed to guarantee that funds are...
When it comes to investing, it is clear that the connection between risk and return is that the higher performance of the investment causes a higher risk. Explanation: The point of investing is growing the highest amount of money as much as possible within a specified period. Investing is a...
Budget variances could create disharmony in the management of operations within the sales division of the insurance company, thereby highlighting the need to manage such inconsistencies. Four strategies can be adopted to mitigate this issue. The first one involves disclosing these variances to the company’s management and board of directors...
Allowing employees to participate in developing a budget makes them to own the budget and view it as a plan of action. A budget usually affects everyone in an organization hence it is critical to involve all parties and participants. Failure to involve the employees hampers effective execution of the...
Long-term investments are very important in securing the future of a business in various markets. The process of deciding the areas in which a business can invest is very complex and requires careful consideration because of the interplay of factors that influence organizational goals. Some of the considerations that a...
Firms that engage in international business through exportation or importation are faced with the risk of exchange rate fluctuation. Therefore, the financial performance of such firms may be adversely affected if effective financial management mechanisms are not adopted. Hedging is one of the strategies that such firms can adopt. Hedging...
The capital asset pricing model has different messages to different people. To investors, the message is simply to invest in a large amount of stock to reduce the risk of losing your investment. An investor should invest in a well-diversified portfolio that is in some securities to make sure that...
There are different management theories that are usually embraced by the two companies being discussed in order for the two companies to succeed. They all believe that there is a need for them to achieve their set targets. The roles and tasks of the human resource practitioners in all the...
Investing activities are investments and the implementation of practical actions in order to make a profit or achieve another useful effect. The most common examples are the purchase of fixed assets and investments, and proceeds from the sale of fixed assets and investments. Explanation: Investing activity is an investment process...
Introduction The U.S. offer investors a wide range of investment opportunities that other countries are not capable of offering. A foreign investor can earn a real tax income from a wise investment. The United State has tried to eliminate the cost of tax in securities and stock. The elimination of...
Project cost and funding mix The World Bank (2014) notes that the total project cost is about $183 million. The project was financed through equity and quasi-equity in shareholder-subordinated debt and senior commercial debt. AES Corporation provided equity of about $68 million through its various subsidiaries. The $ 115 million...
Project cost and funding mix Mawhinney (2008) states that the $ 2.6 bn 1300 MW Paiton I Power Station in Indonesia was a leading private finance project possibility in 1994. The project is 40% owned by a subsidiary of Edison Mission Energy, 32.5% by Mitsui & Co., Ltd., 12.5% by...
Introduction Regular and Islamic finances have since grown and more people are getting used to their services in the financial and mortgage sectors. Islamic finance has gained recognition in recent times with its first establishment being traced back in Egypt in 1963 when the first formal Islamic financial institution was...
Job performance can be deemed a purpose of varying issues: what individuals realize and how they conduct their jobs. Some individuals have exhibited various successful and bad traits in their work (Adler, 2018). For instance, a salesperson may have high profits through unacceptable behavior such as badgering their prospects into...
An investment is an asset people buy with an expectation of a future financial return. There are different classes of investment that vary depending on the capital employed, the risk involved, and expected returns. Specifically people can choose to invest in bonds, stocks, or cash equivalents. Bonds are the least...
The ‘What Is Compound Interest?’ Forbes Advisor’s article describes the negative and positive aspects of compounding and how investors can use it to their advantage. Compound interest is earned when the interest proceeds of money are reinvested continuously throughout a period (Ashford). This plow back ensures ever-increasing returns on the...
Introduction The report focuses on the furniture industry. The report aims to present the reasons for investing in one preferred furniture entity. The presentation includes financial statement ratios. The ratios compare the financial performance of three chosen furniture competitors. Haverty’s Furniture Haverty’s Furniture is perfectly established in Atlanta Georgia. The...
Many people are known to have got great earnings in their lives and ended up poor in their late ages. Acquisition of financial freedom does not purely depend on the incomes earned but also how well the individual can manage the incomes to build or accumulate wealth. Improper management of...
Introduction In selecting the investment to be made by an investor, a number of issues will be considered such as risks, returns long term requirement of the funds, interest rates prevailing in the market and other issues. In choosing this portfolio various market indicators have been considered and these market...
The way in which the finance of a company is managed predetermines the success of this company and its competitiveness in the market. That is why the sphere of managerial accounting is one of the fundamental spheres for the work of every company. In this paper, we are going to...
Introduction Investing in real estate has, over the years, become a very common feature in today’s economy which seems to be degrading every day. Buying of a real estate involves more than just owning a home for the party involved. Despite the fact that the real estate market has more...
There are two basic reasons why an investment company would go for real estate. To begin with, it is imperative to note that renting and buying of real estate is quite lucrative and capable of generating impressive revenue. Eldred (7) notes that it is possible to accumulate significant income and...
Most of the advantages that the stock market provides to small investors are usually the detriments of the stock market on its big investors. Small investors have the flexibility to jump in or out of the market and go to cash depending on the stock prices and have the ability...
Introduction The Australian stock market has made efforts to beef up its regulation and supervision to curb insider trading. Despite the efforts by the market regulators, it has been in the media that, many directors in the Australian Stock Exchange (ASX) market do not meet the requirements that pertain to...
This article highlights the three basic laws of success that anyone can apply for astute financial management. The three laws include generating more income than expenditure, investing the difference, and understanding where the money is going. My understanding after reading the article is that: Spending more money than one is...
Introduction Google Inc. is an American multinational company that offers internet-related products and services. The company offers services such as cloud computing and search engine advertisements. Google obtains most of its profit from AdWords which refers to online advertisement services that allow adverts to be listed on the search engine...
Introduction The decision to invest in any company needs to be supported by detailed analysis with a focus on the company’s financials and liquidity. Two options need to be discussed in this analysis, and it is necessary to consider a five-year period in order to evaluate the investment. It is...
The control of costs due to the increased recession outcomes realized in different economic basis assists in the limitation of adverse results, supply management and the supply procurement (Presutti 2008). The lack of growth due to inappropriate accumulation of revenue generation results in cutting costs by business entities to facilitate...
The net cash change of Warf Computers, Inc. was positive. Cash and equivalents of the company increased from $301,000 in 2011 to $348,000 in 2012. The cash flow statement also reflected that the company had sufficient cash to repay its long-term debt and also to meet its operational needs. Based...
Introduction “Target costing is a method used by firms, defined as a cost management tool for reducing the overall cost of a product over its entire life-cycle with the help of production, engineering, research and design” (Clifton, 2005). A lengthier definition is given by Vedder (2008) who explains that “target...
Introduction According to Gibson (2011), “financial statement analysis involves the identification of the following items for a company’s financial statements over a series of reporting periods” (p. 45). This analysis attempts to reflect on the financial statement analysis as a tool for aiding the making of informed decisions on the...
Drivers of Financial Performance Healthcare companies try to improve their financial performance like any other business. These firms operate in a sector associated with high costs and risks as well as a variety of ethical issues (Friedman, 2015). The market is also highly competitive and technology-driven. Some healthcare organizations fail...
A recent report indicates that Lululemon had a strong start to the current year before Coronavirus forced its stores in the US and Europe to close in March 2020. The uncertainty about the retail industry, including Lululemon will be carefully watched by investors in the months ahead (Kapner, 2020). The...
A financial manager can look at different ratios and financial statements to determine if the business is successful or in distress. However, there are some key indicators that can provide an adequate and quick assessment of the business’s financial health. Mcclure (2019) suggests that examining financial statements is the best...
Introduction A cash flow statement (CFS) is one of the principal types of financial statements. Its primary purpose is to summarize the total amount of cash and cash equivalents (CE) that companies operate. The statement is frequently utilized in business analysis to determine short-term and long-term objectives. Furthermore, the cash...
Problem Statement Introduction This dissertation essentially illustrates the insight of the changing role of independent financial advisers in the UK linking with retail investors respond and the factors touching the investor’s motivation and exploration under the regulatory exercise introduced by the ‘Financial Services Authority’ that emerged and developed in the...
Introduction Chief executive officer also known as the managing director is the highest-ranking corporate officer (Bragg, 2011). A CEO in an organization is in control of the management and gives reports about the organization to the Board of Directors (Bragg, 2011). As such, the Board of Directors sets all the...
Financial intermediaries, such as banks, credit unions, building societies, and insurance firms, play a very important role in growing economies, especially the economy of the United Arab Emirates. As an institution, a financial intermediary performs the function of linking lenders and borrowers concurrently while providing certain fundamental services that aid...
Introduction There have been a lot of revolutions and changes in the business environment of the entire world as far as investments are concerned with the goal of engaging in business activities that have the highest returns as well as great value in almost all sectors of the economy (Deloitte,...
Company Background: Size and growth trends Dubai Financial Market began operating in 2000. It operated as a public joint stock company and it was successful in listing its shares in the DFM itself in 2007. Their initial price was Dh1.03, which was an equivalent of 0.28 dollars, (Oxford Business Group,...
Outline With the unfolding of the economic crisis the financial services industry has started facing severe challenges. The prevailing crisis has its roots in continuous situations of imbalance that include long periods characterized by low-interest rates, speedy increases in asset prices and large-scale imbalances in credit patterns and savings. These...
Introduction The research was carried out on Macy’s department stores. Because of the seasonal market, it was necessary to use a series of seasonal trend tests. Data was gathered from the first quarter, April 30, 2005 and was concluded on a third quarter, which was November 1, 2008. Altogether, there...
Introduction Mergers and acquisitions should be effectively financed to guarantee value creation as the major outcome. In many cases, the focus is on leveraged transactions or leveraged buyouts (LBOs). Researchers accentuate the problem that the value creation associated with LBOs is dependent on various factors, and the success of LBO...
Abstract The Financial sector in Saudi Arabia has experienced tremendous change over the past few decades, especially due to the presence of oil. The socio-economic environment in this country has been confirmed to have a direct impact on the performance of the financial sector. The socio-cultural beliefs and practices have...
Introduction The current management accounting systems have been developed from the ancient managerial bookkeeping concepts. The handling of financial affairs in organizations has been experiencing various changes and issues in domains such as management and accounting. Financial management issues have been exhibited in areas such as the management sectors, leadership,...
Introduction In this paper, I investigated how Clayton County Library could adopt a financial diversification strategy by conducting a wider investigation of the implications of a financial diversification strategy in the non-financial sector. To do so, I used a case study research design to gather the views of library directors...
Introduction The purpose of this strategy is to discuss financial position of Apple Inc, marketing and human resource management analysis, SWOT (strengths, weaknesses, opportunities, and threats), PESTEL, Porter’s five forces analysis, and key strategies of the organization in order to recommend future strategies. a) Main Markets of the Organisation: A...
Introduction The intent of this study was to investigate how CCLS could adopt a financial diversification strategy to enhance its financial stability. To achieve this goal, the researcher strived to provide a thorough understanding of the unique structural, legal, and operational dynamics associated with adopting a financial diversification strategy in...
Introduction The role of a financial manager in any company can be discussed as important to influence a firm’s development, profitability, and position in the market. While being responsible for managing finance of a company, a financial manager conducts the analysis of a current situation, makes significant decisions, and determines...
Introduction Overview Auditing of an organization’s performance through the assessment of the financial statements of the concerned organization is an important element as far as investors’ decisions are concerned. Agbejule and Huusko pointed out that investors rely on financial information about a given company before making any form of decision...
Analysis The theory of price states that, market price is the interaction between two considerations that are opposing. One side is the considerations of demand basing it on marginal utility and other side is supply considerations basing on marginal cost. An equilibrium price is equal to marginal utility from the...
Good employees are hard to find and once available than an organization must have the ability to retain them in long run. IT industry has grown up a lot and changes in trends are coming up daily. IT industry is a little different than other fields as it needs frequent...
Introduction The regulation of the financial service industry has assumed greater importance in the wake of a balanced economic development of the nation. An intrusive regulatory framework is considered very much essential in view of the concern about the safety and soundness of the financial service industry. However the advancement...
Executive Summary We have carried out capital budgeting of mad manufacturing ltd. the analysis shows that the company can invest in the new product to earn a net present value of $ 11,869,970 and an internal rate of return of 60% that is viable using NPV and payback period. the...
Abstract Germany’s economic landscape is based on a business environment fundamentally different from that of Anglo-Saxon economies like the US and the UK. Merger and Acquisition activities (M&A) offer an interesting academic study in understanding a country’s unique corporate culture. In this dissertation, I have conducted empirical research to understand...
Introduction The dividend policy is an essential concern for today’s enterprises. Firms exercise dividends as a mechanism for pecuniary indications for the recluses concerning the strength and growth scenario of the organization. At the same time dividends engage in exercise with an imperative role on capital structure of a firm....
Introduction This paper seeks to advice a company (hereinafter named ABC Company) for considering investing the amount of £350 million in extending its production capacity. Speficifically, the conclusion that derived will be used to advise the Finance Director about how best to appraise this proposal. It is given from the...
Introduction Today’s economic services corporations perform countless contracts and business functions through public and confidential computer systems that create new and compound risks, comprising computer security contravenes, information theft, extortion and business interruption due to a virus, worm, malicious code or hacker attack. Regardless of the level of IT security...
Introduction This research will focus on financial engineering. Ruppert (57) defines financial engineering as “A multidisciplinary field involving financial theory, the methods of engineering, the tools of mathematics and the practice of programming.” On the other hand, Neftci (45) defines financial engineering as “The application of technical methods, especially from...
What does the term cost management mean? Who in the typical firm or organization is responsible for cost management? Cost management is the operation of preparation, development, and regulating a budget. It encompasses additional tasks such as balancing costs, finding funding, and managing finances in order for any given project...
Adjusted present value The adjusted present value will be estimated after correcting the current net present value. This will entail adding the items that were left out and removing those that were erroneously included in the calculations. The new net present value will act as the base for calculating the...
Subject Company Information Apple Corp is an American company that manufactures, sells, and distributes computer hardware, software, and electronics (“Apple” par. 4). It was founded by Steve Jobs along with Steve Wozniak and Ronald Wayne in 1976 (Grady 4). They incorporated the company in 1977 and located the headquarters in...
Meaning Financial ratios are the relative magnitude of two selected numerical values taken from an enterprise’s financial statements. The company’s financial ratios demonstrate its credit unworthiness. The ratios indicate whether a company is a cable of repaying its loans (Bragg, 2009). The business financial ratios are deteriorating and are far...
Introduction The financial market opportunities primarily predetermine the development of all types of non-financial organizations, and their activities often depend on external market factors. When it is about the possible risks related to financial activities, various ways to protect budget funds can be considered as effective mechanisms. One such technique...
Executive Summary Financial management is an organizational function undertaken to inform investment, dividend, and operational decisions. The discussions presented in this paper show conclusively that different financial management practices have the potential to influence business performance positively. Some approaches such as working capital management and capital structure result in desirable...
