Financial Management: Data Analysis, Investment Appraisal Techniques, and Financial Decision Making

Financial Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Identify how the data obtained might help to inform operational and strategic decisions......1
2. Compare and contrast three investment appraisal techniques and effectiveness to maximise
return on investment....................................................................................................................3
Calculation of the payback period...............................................................................................3
3. The value of techniques in helping to inform financial decision making...............................4
4. Analyse how financial decision making supports long term sustainability............................5
5. Recommendation for management accounting used to improve financial sustainability.......5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Financial management is outlined as tackling with and determining money and
investments for an individual to supports a business making decisions. All the financial activities
mainly based on the accounting department (Adomako, Danso and Ofori Damoah, 2016). Most
of the business entities use various types of tool to manage financial transactions and take
effective decision in regard of business. To understand of this report selected organisation is
Tesco plc, which is a British multinational groceries and general merchandise retailer. This
report consist of operational & strategic decisions, investment appraisal techniques, values of
techniques, long term sustainability and provide appropriate recommendations.
MAIN BODY
1. Identify how the data obtained might help to inform operational and strategic decisions
To get success in future require to take effective decision that helps to a business and
apple effective strategic policies in Tesco Plc. T take effective decision in business require to
analysis daily basis activities in which focus on the all financial transactions to improve their
results. To obtain data require to prepare all financial statements in which record each transaction
of business and identify all income and expenditure easily. On the basis of these data a financial
manager of Tesco prepare effective strategies and policies in context of investment an dividend.
Eventually, these statements are mainly based on the ratio analysis techniques.
Ratio analysis techniques: It is a quantitative method in which analysis the liquidity
position, operational performance and profitability due to compare current year data with last
year. It supports to identify the reason of increase and decrease of ratio. There are calculating
ratio of Tesco in order to take right decision in regard of business effectively (Aebi, Sabato and
Schmid, 2012).
Particulars Formula
Profitability ratio analysis
2017-18 2018-19
Gross Profit 3350 4144
1