Scribd
Upload
46 views10 pages

Ae 19 Financial Management: Bukidnon State University

This document provides an overview of financial management and analysis. It discusses how financial statements are used by investors, analysts, managers and other stakeholders to evaluate a company's performance and value. The document notes that financial ratio analysis can provide insights into a company's strengths, shortcomings and potential for future performance compared to its industry peers. The primary goal of financial management, according to the document, is to maximize stock price rather than metrics like net income or earnings per share.

Uploaded by

josephine guhiling
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
46 views10 pages

Ae 19 Financial Management: Bukidnon State University

This document provides an overview of financial management and analysis. It discusses how financial statements are used by investors, analysts, managers and other stakeholders to evaluate a company's performance and value. The document notes that financial ratio analysis can provide insights into a company's strengths, shortcomings and potential for future performance compared to its industry peers. The primary goal of financial management, according to the document, is to maximize stock price rather than metrics like net income or earnings per share.

Uploaded by

josephine guhiling
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

AE 19 FINANCIAL

MANAGEMENT

PREPARED BY: JOBELLE CANDACE F. ABRERA, CPA, CTT

BUKIDNON STATE UNIVERSITY


• A weakening economy
• Difficulties in managing its
inventory
• High distribution costs and
increased competition could
lower its future operating margins
 Investors and others outside the company use
reported earnings and other financial statement
data to determine a company’s value
 Analysts are primarily concerned about future
performance—past performance is useful only
to the extent that it provides information about
the company’s future
 Analysts go beyond reported profits and dig
into the details of the financial statements
 Managers
 Investors  Strengths and
 Lenders shortcomings
 Customers  Improve performance
 Suppliers  Forecast future results
 Regulators
Primary goal:
 Not to maximize net income
 Not to maximize EPS
 Maximize stock price
An industry average is not a magic number that all
firms should strive to maintain—in fact, some very
well-managed firms will be above the average while
other good firms will be below it.

When the firm’s ratios are far removed from its


industry

You might also like