WHAT I KNOW ABOUT MANAGERIAL FINANCE






This is a 10 progress step training, self-assessment


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10% Progress: The first thing to know about .
.
Financial Ratios are tools used to measure the financial business health. They are categorized into: PROFITABILITY. efficiency. Liquidity. Gearing. INVESTMENT. Once the ratio has been calculated it is compared to a benchmark.




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20% Progress:  

PROFITABILITY ratios are: return on ordinary shareholder fund (ROSF). Return on capital employed (ROCE). Net_Profit_Margin and gross profit margin.



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30% Progress:

Efficiency ratios (how is many spent): average stock_turnover_period. average settlement period_for debtors. average settlement period_for creditors. SALES to capital Employed. And SALES per employee.


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40% Progress:

LIQUIDITY RATIOS r about making the company able 2 fund its activities. When u c ratios of Liquidity u can c cash. CURRENT Ratio related 2 comparing the cash (& soon to be cash) 2 liabilities. Acid test RATIO excludes non-cash which makes it a more stringent kind of test. 






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50% Progress:

investment ratios: dividend payout r dividend yield r earnings per Share. And price earning r






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50% Progress:

Limitations of the financial Ratios:

  • as good as their financial statements where they where taken from. 
  • Does not convey BIG PICTURE.







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60% Progress:

When the Firm of the business get the outside Support, then gearing occurs. gearing r and interest ( which is not BENEFICIAL) are there







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70% Progress:

Making the profit is something about knowing volume of ACTIVITY, VARIABLE costs and Fixed COSTS. Costs behaviors: Change when the according to the activity volume or stay UNCHANGED.






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80% Progress:

When the good business achieves the good EQUAL of revenue and total cost, we call that break EVEN




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90% Progress:


CONTRIBUTION Sales Outcomes per UNIT less variable_costs per U. Why is it called that? It helps meeting FIXED COST and also PROFIT.



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100% Progress:


budgeting most importance is its ability to help make decisions. It is a short term financial PLAN. It forecasts the costs of the FUTURE. It is valuable as a forward thinking activity. It has control embedded, what more motivation you NEED?



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Reference:
Accounting and Finance for Non-Specialists

By: Peter Atrill, Eddie McLaney 
Prentice Hall





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Self Assessment:
Effort: 1 minimum to 5 maximum
Understanding: 1 minimum to 5 maximum



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Prepared By: Ghassan Samaha - 
Strathclyde MBA - B.s.Electrical Engineering. 

email: ghassan@feedbackonlinetraining.com
telephone: 058-5997950

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