Concept of Financial Management
Introduction to the principles of financial management.
Understanding the role of finance in business operations.
Key financial management objectives, such as maximizing shareholder value.
The Key Financial Statements
Overview of the three main financial statements: income statement, balance sheet, and cash flow statement.
How to read and interpret financial statements.
The relationship between the financial statements and their impact on business decisions.
Analysis of Financial Statements
Techniques for analyzing financial statements to assess business performance.
Key financial ratios and their significance (e.g., profitability, liquidity, solvency, and efficiency ratios).
Using financial analysis to identify trends, strengths, and weaknesses.
Working Capital and the Financing Decision
Understanding working capital and its components (e.g., inventory, receivables, payables).
Techniques for managing working capital efficiently.
Evaluating financing options and their impact on business operations.
Cost Concepts and Decision-Making
Key cost concepts, including fixed, variable, direct, and indirect costs.
Cost-volume-profit analysis for decision-making.
Using cost information to make informed business decisions and improve profitability.
Financial Information to Manage the Business Using
Utilizing financial information for effective business management.
Importance of accurate and timely financial data in decision-making.
Financial performance indicators and their role in business strategy.
Overview of the budgeting process and its importance in financial planning.
Steps to create and implement a budget.
Monitoring and controlling budgets to ensure financial discipline and goal achievement.
Understanding capital projects and their significance in business growth.
Techniques for evaluating and selecting capital projects (e.g., NPV, IRR, payback period).
Managing capital projects from planning to execution.
