Financial Management of REA Group Ltd

Financial Management

Table of Contents
Introduction.................................................................................................................................................3
Ratio Analysis-............................................................................................................................................4
Conclusion-.................................................................................................................................................6
References-..................................................................................................................................................7

Introduction-
This report is based on financial management of REA group Ltd. Financial management plays
an important role in managing business. It means planning, controlling, directing and organizing
financial activities. Objectives of financial management are as follows-
 It maintains supply of funds for the company.
 Ensures that investors are getting good return on their investments.
 Funds should be utilized efficiently.
 Company should create real and safe investment options.
Financial management department of a company is handled by its financial manager. Financial
management department works on various functions-
 Financial manager needs to calculate the requirement of funds. It depends upon the
company’s policies related to profits and expenses.
 After estimation of requirement of funds, formation of capital structure needs to be done.
It includes debt equity analysis in both long and short term.
 Financial manager invest firm’s money in safe and beneficial ventures in order to raise
funds.
 After earning good amount of net profit, financial manager allocate it efficiently.
 This department is also responsible to efficiently manage firm’s money like- payments
and salaries.
 Financial manager is also responsible for controlling and analyzing firm’s money.
REA group is a real estate company. It is founded in 1995 by Owen Wilson and headquartered in
Melbourne, Australia. It is a public company which is listed on Australian stock exchange. It is
owned by new corp. Australia and had revenue of $820.3 million in fiscal year20. Company
operates property websites in 10 countries and it is used by over 19000 agents and has 8.8
million visitors per month. Company announced its first acquisition in Asia on 11th September
2007. REA group acquired UK property shop in July, 2008.
Ratio Analysis-
REA ratio