Hi I am Samyak Veera from US. I believe in creating financial plan to achieve financial goals as it helps businessman in controlling their budget and save tax too.
2. Financial ManagementFinancial Management
A process that providesA process that provides
entrepreneurs with relevantentrepreneurs with relevant
financial information in anfinancial information in an
easy-to-read format on aeasy-to-read format on a
timely basis; it allowstimely basis; it allows
entrepreneurs to know notentrepreneurs to know not
only how their businesses areonly how their businesses are
doing financially, but also whydoing financially, but also why
they are performing that way.they are performing that way.
Samyak VeeraSamyak Veera
3. Basic Financial StatementsBasic Financial Statements
(cont’d)(cont’d)
current assets-current assets- assets such as cash and otherassets such as cash and other
items to be converted into cash within one yearitems to be converted into cash within one year
or within the company’s normal operating cycle.or within the company’s normal operating cycle.
fixed assets-fixed assets- assets acquired for long-term useassets acquired for long-term use
in a business.in a business.
liabilities-liabilities- creditors’ claims against acreditors’ claims against a
company’s assets.company’s assets.
current liabilities-current liabilities- those debts that must bethose debts that must be
paid within one year or within the normalpaid within one year or within the normal
operating cycle of a company.operating cycle of a company.
long-term liabilities-long-term liabilities- liabilities that come dueliabilities that come due
after one year.after one year.
owners equity-owners equity- the value of the owner’sthe value of the owner’s
investment in the business.investment in the business.
4. Basic Financial StatementsBasic Financial Statements
(cont’d)(cont’d)
The Statement of CashThe Statement of Cash
FlowsFlows
a financiala financial
statement showingstatement showing
the changes in athe changes in a
company’s workingcompany’s working
capital from thecapital from the
beginning of the yearbeginning of the year
by listing both theby listing both the
sources and the usessources and the uses
of those funds.of those funds.
6. Ratio AnalysisRatio Analysis
A method of expressing the relationshipA method of expressing the relationship
between a y two accounting elementsbetween a y two accounting elements
that allows business owners to analyzethat allows business owners to analyze
their companies’ financial performancetheir companies’ financial performance
7. Ratio AnalysisRatio Analysis
Operating Ratios (cont’d)Operating Ratios (cont’d)
Average Payable Period RatioAverage Payable Period Ratio ::
measures the number of days itmeasures the number of days it
takes a company to pay itstakes a company to pay its
accounts payableaccounts payable
=365/Payables turnover ratio=365/Payables turnover ratio
=365/Purchases/Accounts Payable=365/Purchases/Accounts Payable
=365/$939,827/$152,580=365/$939,827/$152,580
=365/6.16=365/6.16
==59.3 days59.3 days
Industry: 43 daysIndustry: 43 days
8. Interpreting Business RatiosInterpreting Business Ratios
Critical numbersCritical numbers ::
indicators thatindicators that
measure key financialmeasure key financial
and operationaland operational
aspects of aaspects of a
company’scompany’s
performance; whenperformance; when
these numbers arethese numbers are
moving in the rightmoving in the right
direction, a business isdirection, a business is
on track to reach itson track to reach its
objectivesobjectives
9. Break-even AnalysisBreak-even Analysis
Break-even pointBreak-even point : the level of operation: the level of operation
(sales dollars or production quantity) at(sales dollars or production quantity) at
which a company neither earns a profitwhich a company neither earns a profit
or incurs a lossor incurs a loss
Fixed expensesFixed expenses : expenses that do not: expenses that do not
vary with changes in the volume of salesvary with changes in the volume of sales
or productionor production
Variable expensesVariable expenses : expenses that vary: expenses that vary
directly with changes in the volume ofdirectly with changes in the volume of
sales or productionsales or production
10. Thank YouThank You
Samyak VeeraSamyak Veera
For more information :For more information :
http://www.bloomberg.com/profiles/people/1http://www.bloomberg.com/profiles/people/1
7164949-samyak-chandrakant-veera7164949-samyak-chandrakant-veera
