FINANCIAL ADMINISTRATION
Basic Financial Concepts
Financial analysis
Work capital Management
Decision making
Operating Leverage
Financial appeceament
Risk, return and value
Time value of money
Accounts Receivable
Inventories
Cash and Marketable Securities
Short Term Financing
Statement of income
Origin and Applications of funds
Balance sheet
Financial reasons
Graphics Presentation
Correlation of Financial Statements
Index Programming
Almost all financial decisions, both personal and business, include
Time value of money considerations.
The return on holding an investment for some period,let's say a year, is
equal to any cash payment received due to the property, plus the change in the market price, divided by the initial price.
Operating or operating leverage is present whenever a company have fixed operating expenses - regardless of volume.
Financial leverage involves the use of fixed cost financing. Of
Interestingly, financial leverage is acquired by selection, while
that operating leverage sometimes doesn't.
To interpret the financial statements it is necessary that we review a series of
concepts. We know that the balance sheet is structured in two parts, assets and liabilities.
When comparing two financial elements we can look for two types of valuations
different. On the one hand we can study the proportion between two values, which
which leads us to a structural approach, on the other we can check its evolution in
time, which leads us to an assessment of the company's own assets
As we have already commented, the balance sheets of a company have, from the point of view of information, an eminently static character That is, it is
an accounting statement that presents the financial and equity situation as of a date
determined and, therefore, does not report on the variations that may have
occurred during the exercise.
To assess the financial condition and performance of a company, the analyst financial needs to verify various aspects of the financial health of a business. One of the tools frequently used to do these verifications is
a financial ratio or index, which relates two elements of information to each other
by dividing one amount by the other.
The public administration of all countries strives to achieve unification of the accounting systems of all companies in general or at least by sectors,
The graph, diagram or whatever this form of graphic expression is called is perhaps the
Most valuable auxiliary used to express statistical data; this element does not
adds anything new to statistical tables or tables, does not supplant it, nor does it have so many details like this; but as a complement to them it is easy to understand and
accessible to even greater number of users.
It is true that legal regulations increase work to some extent
administrative, both data record and file, but it is a mistake to believe that that recording and archiving of data is a useless obligation, wasted time or a
waste of resources.
Banks sometimes require lenders to maintain a balance
average as demand deposit, which usually oscillates between 10 and 20% of the value
face value of the loan, this is known as the offsetting balance(CB), and such balances increase the effective rate of interest on the loans.
The business acquires an account receivable when it sells different goods or services, on credit. The term collect means, the promise of the client to pay
with money the amount that was charged for merchandise or services, on a date
future.
Available merchandise representing the products that will be
sold to customers.
Claims about the flexibility, cost, and degree of risk of debt
Short-term versuslong-term depend largely on the type of short-term credit that is actually used.