Financial Management

Meaning of Leverage Leverage refers to the use of fixed-cost instruments to maximise the return potential for the shareholders. In the world of finance, the word “leverage” has various variables such as revenue, costs, earnings before interest and tax (EBIT) and output quantity have an impact on the returns available to the shareholders. The study […]

Financial management includes key objectives that organizations follow to secure their financial stability and achieve success. These objectives of financial management serve as guiding principles for effective decision making and resource allocation within the field of finance.

Inventory refers to stock-pile of product, a firm is offering for sale and components that make up the product.

The takeover means the purchase of one company by another without the formation of a new company. The process of one company obtaining a controlling stake in another company by purchasing its shares.

Receivables management refers to the planning and controlling of ‘debt’ owed to the firm from customers on account of credit sales. This practice is commonly referred to as trade credit management.

Cash management deals with the optimization of cash as an asset and for this purpose, the financial manager has to make various decisions from time to time. He has to deal as the cash flow director of the firm.