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Project Report: Financial Management

   

Added on  2021-05-31

7 Pages1546 Words173 Views
Running Head: Financial Management 1Project Report: Financial Management
Project Report: Financial Management_1
Financial Management 2ContentsIntroduction.......................................................................................................................3Company overview...........................................................................................................3WACC calculations..........................................................................................................3WACC explanation...........................................................................................................4Gearing ratio and the difficulties......................................................................................5Findings............................................................................................................................5Recommendation..............................................................................................................6Reflection..........................................................................................................................6References.........................................................................................................................8
Project Report: Financial Management_2
Financial Management 3Introduction:Financial management is an effective and efficient way for an organization to managethe financial performance and the position of an organization. It is a specialized managementprocess of an organization which makes it easier for an organization to manage the financial functions of the organization. The financial management process is quite effective for an organization as it offers a great base to the management of the company to evaluate the financial performance and the position of the company. Financial management means organizing, planning, controlling, directing all the financial transaction and activities of a business such as procurement of funds, utilization of funds etc of an organization.In the report, capital structure of Altium limited has been identified through calculating the WACC and gearing ratios of the company. Capital structure combines the debt, preference share and equity of an organization. It explains about the total capital which has been funded by the company for its long term investments and the project. Company overview:Altium limited is an Australian company. The stock of the company s traded in the Australian stock exchange. The main operations of the company are to offer software to the engineers to design the electronic products such as circuit board. Head office of the company is situated at Sydney in Australia. In the year of 1985, company has come into the market andthe company has managed all the functions and operations very effectively (Home, 2018). The company is operating its business into various countries to enhance the market base and become more competitive in the industry. Currently, the company is running its activities in United Kingdom, Japan, and China etc. Main products of the company include Tasking, software’s, Circuit board, Upverter etc. WACC calculations:WACC is a capital structure technique which is used by the companies and the financial analyst to measure the total cost of capital of the company. WACC techniques are used by the organizations to identify the total cost which would be abided by the company against the total capital amount of the company. In case of Altium limited, total WACC of the company is 7.12%. It explains that in current scenario, company is required to bear 7.12% due to the total capital (debt and equity)
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