administracion de capital Flashcards
CFO: CHIEF FINANCIAL OFFICER
who is the responsible to represent financial condition and decide how to invest the money?
economics
What is the source/science of finance
definition of finance
the science that describes the management, creation and study pf money, banking, asseys and liabilities
5 classification financial ratios
profitability ratio
asset utilization ratio
liquidity ratio
debt utilization ratio
value market ratio
finantial ratios to do a cash flow
income
balance inicial
balamce final
EBIT
earning before interest and taxes
EBITDA
earnings before interest and taxes, depreciation and amortization
what is depreciation
loss of value in fixed assets with time
accountant
who is the responsible to prepare financial records
financial management
who is the responsable to alocate founds of current assets and fixed assets
financial analyst
is the responsible of the liquidity in the company and risk management
reason why finance is related to economics
because of the use of financial statements
reason why finance is related to management
both of them manage the entity’s resources
LIQUIDITY
the ability to sell an investment quickly at a fair market price. The more liquid an investment, the more easily an investor can dispose of it without having to accept a substantial discount in price.
NET WORKING CAPITAL
the amount of a firm’s investment in current assets
PROFITABILITY RATIO
used to assess how a company is performing
PROFITABILITY
Relationship between income and costs generated using the company’s assets (both current and fixed) in productive activities.
TREND ANALYSIS
a technique that tries to predict future stock price movements based on historical data, such as price movements and trade volume.
VALUE MARKET RATIO
measure and analyze stock prices and compare market prices with those of competitors and against other facts and figures.
WORKING CAPITAL MANAGEMENT
the planning and control of a firm’s current assets and current liabilities to maximize the profitability and reduce the risk of not being able to meet short-term obligations.
WORKING CAPITAL
the difference between a firm’s current assets and its current liabilities
What are the 5 C´s of credit?
Character, capacity, capital, collateral, and condition
Accounting
What is the language of finance?
BUDGET
A statement of the company’s planned cash inflows and outflows that is used to calculate its short-term cash requirements.
What is the goal of the balance sheet?
reveal the financial status of a business as of a specific point in time.
What is the income statement?
a financial statement that reports a company’s revenue, expenses, gains, and losses over a specific period.
What is the cash flow statement?
emphasizes the importance of cash flow in a firms operations focusing on cash
