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FINANCIAL MANAGEMENT shutterstock_608938430-scaled - Coggle Diagram
FINANCIAL MANAGEMENT 
Basic Financial Concepts
Financial Leverage
Financial leverage involves the use of fixed cost financing. From
interestingly, financial leverage is acquired by selection, while operating leverage sometimes is not.
operating leverage sometimes does not..
Operating Leverage
Operating or operating leverage is present whenever a company has fixed operating expenses - regardless of the volume
has fixed operating expenses - irrespective of volume
Temporary Value of Money
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Interest Rates: Allows us to adjust the value of cash flows whenever they occur at a particular point in time.
occur at a particular point in time.
Risk, Return and Value
The return from holding an investment for some period, say one year, is
is equal to any cash payments received due to the property, plus the change in the market price, divided by the initial price.
market price, divided by the initial price.
Financial Analysis
Income Statement
Statement of economic performance or profit and loss statement, is a financial statement that shows in an orderly manner and in detail how the profit or loss for the period was achieved.
Sources and Applications of Funds
It is an accounting statement whose objective is to present in a simplified but sufficiently analytical manner sufficiently analytical, the resources obtained within the financial year in a simplified but sufficiently analytical manner, the resources obtained within the financial year of the same
Balance Sheet
Liabilities represent the company's means of financing, both its own and those of third parties.
its own and from third parties
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Financial Reasons
Indicators used in the world of finance to measure or quantify the economic and financial reality of a company or unit under evaluation, and its capacity to assume the various obligations it is required to assume in order to carry out its corporate purpose.
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Decision-making
Presentation of Charts
In addition to visually expressing the most important facts the most important facts of the numerical information allows for a better and more accurate easy to understand and saves time and effort in the analysis of statistical data by making it easier to facilitating their visual appreciation in an aggregated form.
Correlation of Financial Statements
Correlation is a statistical measure of the relationships, if any, between series of numbers representing data of any kind.
Summaries
Almost all financial decisions, both personal and business, include considerations of the time value of money,
include considerations about the time value of money.