FINANCIAL MANAGEMENT

Financial Management

Table of Contents

Introduction2

Companies Financial System2

BAE Systems -Financial Management2

Financial Statement Analysis4

Acid Test/Quick Ratio5

Current Ratio5

Inventory Turnover6

Average Collection Period6

Average Payment Period6

Fixed Assets Turnover6

Total Asset Turn-Over6

Debt-Equity Ratio7

Times Interest Earned ratio7

Operating Profit Margin7

Net Profit Margin7

Return on Total Assets8

Financial Management of Klamoya Gaming Tribe9

Financial Measures10

Conclusion13

Financial Management

Introduction

Financial management is the management of financial functions. Financial functions include obtain funds (rising of funds) and how to use these funds (allocation of funds). Financial managers are concerned with the determination of total assets worth of investments in various assets and choose the sources of funds to finance the asset. To obtain funds, financial managers can obtain it from within and outside the company. Sources from outside the company come from the capital market, may take the form of debt or equity capital.

The purpose of financial management is to maximize corporate value. However, behind this goal is still there is a conflict between business owners with providers of funds as creditors. If the company running smoothly, then the value of the company's stock will rise, while the value of corporate debt in the form of bonds is not affected at all. So it can be concluded that the value of stock ownership can be an appropriate index to measure the level of company. Based on that reason, the financial management objectives expressed in terms of maximizing the value of shares of corporate ownership, or maximize stock prices. The purpose of maximizing the stock price does not mean that managers should attempt to seek capital appreciation of shares at the expense of bondholders.

Companies Financial System

Company 1: BAE Systems -Financial Management

British Aerospace merged with Marconi Electronic Systems on 27 April 1999, deal was accepted in £ 7,700 million by BAE. BAE was observed drawing close to join with DASA to configuration pan-European aviation oversized, but eventually BAE united vindicate electronics subsidiary of GEC. An appealing aspect of MES Tracor may well have been paid for by GEC in 1998 and were greatest arms paying for in U.S. market by European financial gathering so far. After joining BAE / MES, DASA united Aerospatiale to bring ahead gathering that would afterwards unite Spanish CASA subsequent an accord noted in December 1999. Creation of what might be delineated as British financial gathering had a superiority over this hypothetical Anglo-Germans, as did advance odds of moving into U.S. market more easily. This commanded financial gathering to advance its financial endeavour in United States and in addition, to observe how profits from this developing market. At matching time, financial gatherings in continental Europe were forced their movements so choked with population market. Large European financial gatherings like Thales Group and EADS had little likelihood of being rewarded, weighed against with BAE Systems, in some part of F-35 Lightning II (Blair, 1991, 305).

In 2008 per annum report, general director of BAE Systems, Richard Evans, summed up enterprise approach subsequent joining with Marconi. In fresh years, BAE Systems has undergone thorough transformation from British aeroplane fabricator to multinational diversified. Throughout this transformation, financial gathering has realised more balanced ...