Financial management ppt
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This document discusses financial management and capital budgeting. It defines financial management as planning, directing, monitoring, organizing, and controlling an organization's monetary resources. The roles of a finance manager include estimating financial needs, identifying funding sources, allocating funds, and ensuring optimal fund usage. Capital budgeting evaluates large investments to obtain the best returns, and techniques for project selection include payback period, accounting rate of return, profitability index, and internal rate of return. Capital budgeting decisions are significant as they commit an organization to long-term assets and impact future sales based on asset availability and capacities.
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Financial management ppt
- 1. Presented by:- Nikhil kumar Abhiraj Kumar Sangam Kumari Rupali Kumari Financial Management
- 2. Content Meaning of financial Management Finance Manager and their Role Scope of financial Management Objectives of financial management Capital Budegting Significance of capital budgeting Characteristics of capital budgeting Techniques of selecting capital
- 3. What is Financial Management? The planning,directing,monitoring,organizing,and controlling of the monetary resources of an organizatio. Who is the Finance Manager? Finance Manager is a person who is the head of the finance department and take decision,all the activities which are done in finance department in under the control of finance officer.
- 4. Role of Finance Manager Making an estimate of the financial need of a business Identifying the different sources of raising the required funds Taking steps to raise the funds from various identifying sources. Ensuring the proper allocation of the finance raise Taking steps to bring about the optimum use of the allocated funds Management of profits
- 5. Sources of finance . Debentures Bonds Bank loan Equity shares Prefrence shares
- 6. Scope Of Finance Management Investment decision Financing decision Dividend decision Liquidity decision
- 7. Objectives of Financial Management Profit Maximization Wealth Maximization
- 8. Capital Budgeting Capital budgeting is made up of two words ’capital’ and ‘budgeting’. In this context, capital expenditure is the spending of funds for large expenditures like purchasing fixed assets and equipment, repairs to fixed assets or equipments, research and development, expansion etc. Budgeting is setting targets for projects to ensure maximum profits. Capital budgeting is a process of evaluating investment and huge expenses in order to obtain the best returns on investment. An organization is often faced with the challenges of selecting betweens two projects/investments or the buy vs replaces decisions. Ideally, an organization would like to invest in all profitable projects but due to the limitation of the availability of capital an organization has to choose between different projects/investments.
- 9. Significance of capital budgeting The decision maker loses of his flexibility for the results continue over an extended period of time he has to make a commitments for the future. Assets Expansion is related to future sales. The availability of capital assets has to phased properly.
- 10. Characteristics of capital budgeting Capital Expenditure for long period Forcasting Planning assets capacities.
- 11. Techniques of selecting capital budgeting Pay back period Accounting rate of return Profitability Index Internal Rate of return