John Tennent

The Economist Guide to Financial Management

Notify me when the book’s added
To read this book, upload an EPUB or FB2 file to Bookmate. How do I upload a book?
  • Nick Voroninhas quoted9 years ago
    In an organisation financial acumen is a skill that will support any manager in their career. The skill is not about knowing the intricacies of transaction recording or the details of financial reporting; it is about having the ability to do six things:
  • Nick Voroninhas quoted9 years ago
    Seek ways to add value not cost – continually improve the performance of the products and services by adding customer value while eliminating cost and waste in their provision.
  • Nick Voroninhas quoted9 years ago
    Engage with the business strategy
  • Nick Voroninhas quoted9 years ago
    The first stage in designing any report is to identify its purpose and/or the questions that it seeks to answer. Typical questions might be: “What proportion of the budget has been spent?”; “Which transactions are over a specific amount?”; “Which customer invoices are unpaid after 60 days?” Once the purpose has been defined it is a simple matter to create an appropriate report for distribution as frequently as required.
  • Nick Voroninhas quoted9 years ago
    Success can therefore be achieved by understanding and satisfying investors’ requirements, which can be interpreted as “creating a sustainable superior return on investment”.
  • Nick Voroninhas quoted9 years ago
    example, a business has raised $70,000 of equity capital and a $30,000 loan. If the shareholders require 20% return on their money and the bank wants 8%, the average dollar would cost the business 16.4%, which is calculated as follows:
    This is known as the weighted average cost of capital (WACC). For a business to be successful and satisfy its investors it must earn at least this rate on its operating activities.
  • Nick Voroninhas quoted9 years ago
    Any project that can earn a business a ROI that is greater than the WACC will help the business be successful.
fb2epub
Drag & drop your files (not more than 5 at once)