Chapter Name: Fundamentals of Financial Management for non-financial managers
Description:This chapter demystifies financial concepts for retail managers without a financial background, covering topics like budgeting, financial statements, and cost control.
Purpuse:To empower learners to make informed financial decisions and understand the financial health of their retail operations.
Rational:Financial literacy is essential for managers to allocate resources effectively and drive profitability.
Chapters Topics
The goals of financial management
Outlines the primary objectives of financial management, including maximizing shareholder value, ensuring liquidity, and achieving profitability, to guide decision-making processes in organizations.
Understanding financial statements
Provides an overview of key financial statements—balance sheet, income statement, and cash flow statement—explaining their components and how they reflect an organization's financial health.
The analysis of financial statements
Introduces techniques for analyzing financial statements, such as ratio analysis, trend analysis, and benchmarking, to assess performance and inform strategic decisions.
The time value of money
Explains the concept that money available today is worth more than the same amount in the future due to its potential earning capacity, introducing tools like Net Present Value (NPV) and Internal Rate of Return (IRR).
Valuation
Discusses methods for valuing assets and businesses, including discounted cash flow analysis and market comparisons, to determine worth and guide investment decisions.