Financial Management and Use of Ratios in Business

Business

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................1
Financial Management and its Importance..................................................................................1
SECTION 2.....................................................................................................................................2
Discussing financial statements and use of ratios........................................................................2
SECTION 3.....................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
APPENDIX....................................................................................................................................10

INTRODUCTION
Investment banking refers to the investment and technology which a company employee in
order to achieve its goals and objectives (Anwar, Shah and Hasnu, 2016). Companies receive
money for everything from the purchase of raw ingredients to the distribution of products and
activities to customers. Business financing refers to the transfer of commodities with the goal of
supplying consumer demands. It provides funds for the corporation's capital expenditures and
also financial stability. This article explores budgeting and determining a market value.
Variations can be observed in the financial statements and the use of proportions in financial
reporting.
SECTION 1
Financial Management and its Importance
Financial management relates to the procedure of administering an organization's finances and
accounting systems. It ensures that funds are available to meet day-to-day company's needs and
also that funds are funded properly. Among several other things, money management entails
determining on purchases, lasting fiscal stimulus, and income sources. It aids in central policy,
architecture, and management. It also includes decisions on shareholder revenues and profits. It
provides pertinent information regarding the company's income statement and expenditures,
allowing managers to conduct informed decisions. Organization would be enabled to see where
company's revenue is being spent and save costs. Financial management is important to the
achievement of a firm for the aforementioned purposes-
Financial Planning: Financial management aids in the arrangement of a company’s
financial position. It includes, among other things, planning for strategic performance, planning,
and financial requirements. It assists businesses in preparing for unfortunate events that arise as a
result of various influences. Financial management assists businesses in reaching its intended
goals. It is in charge of the corporation's price, spending, receivables, and profits.
Procurement of funds: Money management supports a company in receiving funding
from less income that is appropriate for the financial strength. Investment is available for a
company worker to function well. It ensures liquidity funds are available whenever a company
needs it. It is essential for daily operations, acquisition, financial obligations, and the purchase of
intermediate products, among many other things (Crick and Crick, 2020).

Utilisation of funds: Wealth management supports a company's management in making
the efficient use of time by allocating money in an effective manner. It elements that improve
dispersion information, allowing businesses to understand where their money is being spent and
cut expenditures.
Financial decisions: Financial accounting supports businesses in ensuring financial
regulations that affect the operations of the corporation. As a result, all aspects of the company
demand funds, and financial decisions would have an influence on the entire. These choices aid
the organisation in achieving its long-term objectives.
Increase profitability: Investment banking aids in the efficient allocation of energy in
terms of improving a corporation's efficiency of the economy. A monetary strategy,
socioeconomic appraisal, and other strategies are being used to boost a stock profits through cost
minimization. Employees are likewise urged to save more, which lowers the amount of acquiring
finances (Frishammar and Parida, 2019).
SECTION 2
Discussing financial statements and use of ratios
Balance sheet:
Amount
2016
Total
£0
Non Current assets
Intangible assets 5,793.
Tangible assets 52,812
Investments 10,693.
69,298
Current assets
Stocks 28,571
Trade debtors 26,367.
Short term deposits 14,779
Cash at bank and in
hand 14,632
84,349
Current liabilities
Bank loans and
overdrafts 9,610.
Trade creditors 19,493