Importance of Financial Management

This article discusses the concept and importance of financial management, different types of financial statements, use of ratios in financial management, and ways to improve financial performance. It emphasizes the significance of financial planning, safeguarding, allocation of funds, financial decision-making, valuation of company, capital reserves, and proper use of funds. The use of ratios in financial statements is also explained, along with their comparison and application for stakeholders. The article concludes with suggestions to improve financial performance, such as increasing prices and recovering outstanding debts.