Financial management

Basic Financial concepts

Financial Analysis

Working Capital Management

Decision Making

Specific objectives

That the participant understands the concepts of risk, performance and value.

That the participant understands the concept of operating leverage.

That the Participant knows the generalities and use of the calculation of the money in the time

That the participant understands the concept of financial leverage.

Specific objectives

Specific objectives

Specific objectives

Temporary value of the Money

Almost all the financial decisions, both personal and business, they include considerations on the value of the money in the time.

Interest rates:

Allows us to adjust the value of the cash flows provided that occur at a particular point in time.

Risk, Performance and Value

The yield of maintaining an investment during some period, let's say one year, it is equal to any payment of cash received due to the property, more the change in the price of market, divided between the initial price.

for example

, You could buy a value of $100 you pay $ 7 in cash and will be worth $ 106 a year later.

Operating leverage

The leverage of operation or operational is present whenever a company has fixed costs of operation - without considering the volume.

Financial leverage

The financial leverage involves the use of financing of fixed cost.

The financial leverage is used with the hope of increasing performance to the holders of common actions.

That the Participant dominate the presentation graphics as support for decision-making.

That the Participant dominate the correlation of financial statements as support for decision-making.

That the Participant dominate the programming of index as support for decision-making.


That the Participant dominate the preparation of summaries as support for decision-making.

Index scheduling

Correlation of Financial Statements

summary

Graphics presentation

Sirven también para conocer aspectos como:

Increases and decreases in the heritage,

The assets and financial situation of the company,

The evolution of the company,

The chart, diagram or as name this form of graphical expression is perhaps the auxiliary more valuable and used to express statistical data.

The charts or diagrams have several forms of presentation

By using areas or surfaces, such as circles, squares, triangles or rectangles

Using volumes, is used to do this cubes or areas

By lines that can be continuous, columns or bars,

graphic components

scale

Grid or reticle

Coordinates system

fountain

The basic needs of control require the books of accounts and financial statements:

The largest and the Seniors ancillary.

balance

The newspaper and the auxiliary newspapers.

The results accounts.

The financial administration is interested in the acquisition, financing and management of assets, with a global goal in mind.

That the participant understands the basic administration of accounts receivable.

That the participant understands the basic management of cash and marketable securities.

That the participant understands the basic management of short-term financing.

That the participant understands the basic administration of accounts receivable.

Cash and Negotiable Values

When approving a bank loan, the contract is executed by signing a promissory note.

The promissory note specifies

The reimbursement program, which may require a cumulative sum a series of payments

Any warranty that may need to be provided as collateral for the loan

The amount requested on loan

Accounts Receivable

The term receivable means, the promise of the customer to pay with money the amount that i was charged for goods or services, at a future date.

The business acquires an account receivable when sold to various goods or services, to credit.

Generally, the business this promise is expressed with the amount of cash that will be charged within the next 30 days

inventory

Available goods that represent the products that will be sold to customers.

Short-term financing

The short-term credit is defined as any liabilities that originally have been programd to be settled at the end of a year.

There are numerous sources of short-term funds, and in the following sections we will describe the four main types

The accounts payable (commercial credit)

The bank loans and

Accrued Liabilities

The commercial paper

That the Participant dominate the general information of the State of results.

That the Participant dominate the source and application of funds.

That the Participant dominate the general information of the Balance Sheet.

That the participant to know the principles for the calculation and interpretation of financial reasons.

Balance general

Result Status

We know that the balance sheet is structured in two part active and passive.

Source and Application of Funds

Financial reasons

Liabilities represents the means of financing available to the company, both own and third party, while the active indicates in which goods and rights have been invested such means.

When comparing two financial elements we can find two types of different assessments

A good profitability situation can be a guarantee of future solvencias, even more significant that a good current capital adequacy ratio.

As we have already said, the balance sheets of a company are, from the point of view of information, an eminently static

Types of reasons financial

General Balance reasons

Dynamic reasons and reasons estaticodinamicas

One of the frequently used tools to make these checks is a financial reason or index, which relates between if two elements of financial information by dividing a quantity between the other.

The second method of comparison involves comparing the reasons for a company with those of similar companies or with averages of the industry in the same moment in time.