Finance for Strategic Managers: Sources of Financial Data, Risks, and Capital Appraising Techniques

This presentation on Finance for Strategic Managers covers the sources of financial data to inform business strategy, the need for financial data, financial risks faced by businesses, and capital appraising techniques. It includes information on balance sheets, income statements, equity statements, and cash flow statements, as well as crucial aspects such as assets, liabilities, equity, income, and expenses. The presentation also discusses different types of financial risks, such as credit risk, liquidity risk, currency risk, and equity risk, and capital appraising techniques like net present value, average and internal rate of return, and payback period.

FINANCE FOR STRATEGIC
MANAGERS

TABLE OF CONTENT
 Sources of financial datato inform business strategy
 Need of the financial data
 Financial risks faced business
 Capital apprising techniques
 References

SOURCES OF FINANCIAL DATATO INFORM
BUSINESS STRATEGY
balance sheet, income statement cash flowstatement
Equity statement, etc

CONTINUED
 There are different types of crucial aspects such as assets, liabilities, equity, income, expenses, etc.
 It aids in assessing that how effectively resources are taking into consideration so that relevant
processing can become possible
 Ascertaining current & potential liabilities for measuring credibility & trustworthiness gives
information so that accurate and fair decision can be made.
 In order to make appropriate level of business strategy it becomes essential to check the legal
requirements available information in turn proper compliance can be made.

NEED OF THE FINANCIAL DATA
 The formulation of business strategy is helping in assessing significant insights regarding
utilization of monetary resources so that better processing can be made.
 It includes insights regarding current and non current assets and liabilities etc. This helps in
assessing how effectively company is paying off debts, using assets to optimize resources,
relationship with suppliers, etc.
 It is an international organization which needs firm to include all of the details of loans,
investment, financing, etc.
 Proper evaluation of financial resources to managing appropriate ability to cope up with
market trends can become possible.

FINANCIAL RISKS FACED BUSINESS
Credit Risk Liquidity Risk Equity Risk
Currency risk , etc

CAPITAL APPRISING TECHNIQUES
 There are different kinds of methods that can be used by specific organization in order make sure
that proper utilization of resources for meeting objectives.
 It comprises net present value, average & internal rate of return and pay back period.
 Net present value allows to get the details related with discounted cash flows so that appropriate
decision regarding the same can be made.
 In addition to this, pay back period permits to get the information related with duration in which
firm can recover its initial investment capital.
 Average ate of return helps in specifying annual amount of cash generated averagely over the life
of an investment.
 IRR provides indication of potential of investment profitability.

REFERENCES
Books and Journals
 Ardalan, K., 2017. Advancing the Interpretation of the Du Pont Equation. Journal of Modern
Accounting and Auditing. 13(7).. pp.294-298.
 Husain, T. and Sunardi, N., 2020. Firm's Value Prediction Based on Profitability Ratios and
Dividend Policy. Finance & Economics Review. 2(2). pp.13-26.
 Michelon, P.D.S., Lunkes, R.J. and Bornia, A.C., 2020. Capital budgeting: a systematic review
of the literature. Production. 30.
 Siziba, S. and Hall, J. H., 2021. The evolution of the application of capital budgeting techniques
in enterprises. Global Finance Journal. 47. p.100504.