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24 Cards in this Set
- Front
- Back
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Objectives of Financial Managemet |
Profitability, Growth, Efficiency, Liquidity, Solvency |
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Internal Sources of Finance |
Retained Profits, Owner's Equity |
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External Sources of Finance |
Debt, Equity |
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Short Term Debt |
Overdraft, Commercial Bills, Factoring |
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Long Term Debt |
Mortgage, Debentures, Unsecured Notes, Leasing |
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Equity |
Ordinary Shares, New Issues, Rights Issues, Placements, Share Purchase Plans |
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Financial Institutions |
Banks, Investment Banks, Finance Companies, Superannuation Funds, Life Insurance Companies, Unit Trusts, Australian Securities Exchange |
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Government Influences |
Australian Securities and Investment Commission, Company Taxation |
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Global Market Influences |
Economic Outlook, Availability of Funds, Interest Rates |
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Planning and Implementing |
Financial Needs, Budgets, Record Systems, Financial Risks, Financial Controls |
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Liquidity |
Current Ratio: CA/CL |
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Gearing |
Debt to Equity Ratio: TL/TE |
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Profitability |
Gross Profit Ratio: GP/Sales |
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Efficiency |
Expense Ratio: Total Expenses/ Sales |
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COGS |
Opening Stock + Purchases - Closing Stock |
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GP |
Sales - COGS |
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NP |
GP - Expenses |
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Cash Flow Management Strategies |
Distribution of Payments, Discounts for Early Payments, Factoring |
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Control of Current Assets |
Cash, Receivables, Inventories |
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Control of Current Liabilities |
Payables, Loans, Overdrafts |
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Strategies |
Leasing, Sale and Lease back |
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Profitability Management |
Expense Minimisation, Revenue Controls |
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Expense Minimisation |
Fixed Costs, Variable Costs, Cost Centres |
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Revenue Controls |
Marketing Objectives, Expense Minimisation, Sales Mix |
