Topic 3: Finance Flashcards
Role: Strategic role of Financial Mmgt
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Role: Objectives
- Profitability
- Growth
- Efficiency
- Liquidity
- ## Solvency
- Short term
- Long term
Role: Interdependence
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Strategies: Cash flow mmgt
- Cash flow statements
- Distribution of Payments
- Factoring
- Discounts for early payments
Strategies: Cash flow mmgt
- Cash flow statements
- Distribution of Payments
- Factoring
- Discounts for early payments
Strategies: Working Capital mmgt
- Control of curr. assets
- Control of curr. liabilities
- Strategies
Strategies: Profitability mmgt
- Cost controls
- Revenue controls
Strategies: Global financial mmgt
- Exchange rates (USD:AUD/USD:JPY tether)
- Interest rates
- Methods of Intnl. payments
- Hedging
- Derivates
Processes: Planning and Implementing
- Financial needs, budgets, record systems, financial risk, financial controls, debt+equity matching
Processes: Monitoring and controlling
- Cash flow statement
- Income statement
- Balance sheet/statement
Processes: Financial ratios
- Liquidity
- Gearing
- Profitability
- Efficiency
- Competitive ration analysis
Processes: Lims. of financial reports
- Normalised earnings
- Capitalising expenses
- Inaccurate valuing of assets
- Timing issues
- Debt repayments
Processes: Ethical issues related to financial reports
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Influences: Global Market influences
- Economic outlook
- Availability of funds
- Interest rates
Influences: Financial institutions
- Banks
- Investment banks
- Finance companies
- Super annu. funds
- Life insurance companies
- Unit trusts (holds assets for the benefit of unit holders)
- Aus. Sec. Ex (ASX)
Influences: Influence of Govt
- ASIC (Aus. Sec. and Investment Comm.)
- Company taxation
Influences: External sources
SHORT term debt
- Overdraft
- Comm. bill
- Factoring
LONG term debt
- Mortgages
- Debentures
- Unsec. notes
- Leasing
EQUITY
- Ordinary shares (new share issues, rights issues, placements, share purchase plans)
- Priv. equity
Influences: Internal sources
- OE (Owners Equity)
- Retained Profit
