Finance for Non-Financial Managers, 3rd Edition
The role of a financial manager is to maintain a firm's profitability, liquidity and solvency. Sales may generate revenue, but it is only when credit sales are converted into cash once debtors settle their accounts that these goals become achievable. As firms attempt to ensure their sustainability, they face competition from other firms, regulation and taxation by government, new technologies, and a dependency on suppliers and labour, as well as challenges from environmental issues and dynamic economic conditions. Finance for non-financial managers explains the long-term goal of creating value, followed by the short-term goals of profitability, liquidity and solvency. A firm has to acquire assets and to finance them at the lowest cost possible. However, the management of these assets is not exclusively in the hands of a financial manager. Other functional departments, especially procurement and marketing, play a significant role. Finance for non-financial managers thus provides an understanding of the principles of financial management required to contribute favourably to the long-term sustainability of a firm. Finance for non-financial managers explains the financial goals of a firm, and illustrates how the principles of finance should be applied in creating wealth as opposed to simply maximising profit. With its thought-provoking opening cases and user-friendly content, this book is ideal for anyone who has little or no prior knowledge of accounting or financial management. In particular, Finance for non-financial managers deals with the following: The long- and short-term goals of a firm in view of its operating environment; Analysing and interpreting financial statements; Financial planning and budgeting; Using a financial calculator; Evaluating new investments by means of capital budgeting; Managing the cash flow of a firm. Finance for non-financial managers is a useful resource for managers involved in marketing, human resources, logistics, supply chain management and information.