Jay Hollowell

Luis,

Good points! I would say too that financial management, as an element of decision-making, also affects planning, control, budgeting and even daily cash flow analysis.

Jay Hollowell

Luis Rodriguez

I agree, Financial management is concerned with making decisions regarding the size and composition of assets, the level and structure of financing policy dividends.
That is contemplating the elements necessary to achieve profit maximization or wealth maximization

JENNIFER TURNER

I would like to ask a question, should a lease debt that was fraudulently signed and in current litigation be booked on the financials to be calculated in to the ratios?

Jay Hollowell

Donald,

Well put! I too examine financial ratios (debt ratio, quick ratio, equity ratio, etc.) as a valid indicator of financial performance. And as you also mentioned, the cash flow is crucial since it directly relates to how well an organization can pay its short-term debts. Thanks!

Jay Hollowell

Donald Daly

I agree with the statement. To understand a company’s financial position and financial sources, I would look at the Income Statement to understand what percentage of financial resources is derived from sales and controlling expenses. Also, a good profit margin is a sign of good current and future financial health. Secondly, I would look at the Balance Sheet to review how the company’s assets and liabilities align. I would examine how much short-term and long-term debt the company is committed to paying. Additionally, I want to ensure that what is being financed is balanced with the proper term repayment of the debt. Finally, since cash is king, I want to understand the company’s cash flow statement to see how much cash is available to meet short term obligations or opportunities that may become present in the marketplace in terms of new product development or potential acquisitions. Sound financial management addresses all these areas

Jay Hollowell

Susan,

Good points, Susan, in fact as you reference, shared financial information among stakeholders can lead to a more feasible pathway to tapping the resources that may be available outside of an organization's daily operations. It works hand-in-hand.

Jay Hollowell

Susan Chiaramonte

I agree with this statement. Financial management encompasses the organization's available resources, but also provides insight into the financial sources. Resources speak to the options available within the organization and sources are those options which the organization can utilize that may not be currently within the organization, but at its disposal. It is important for all organizations to be aware of both the resources available throughout the course of business,but also the various sources which can be tapped. It is also important that financial information be shared within the organization at each level so that the entity as a whole can contribute to the financial management of the company incorporating various perspectives.

Robert Krell

I absolutely agree that financial management addresses both resources and sources. One only has to look at the basic and advances table of contents of financial management texts to see this. Financial management is exactly that: the management of finances (external and internal facing). Financial management from a personal or corporate perspective addresses the same categories of issues. Namely, in your personal lives you look at how you spend and where your funds for spending come from. From a corporate perspective (small or large, new or old) you look to the balance sheet (assets representing the uses of resources -- liabilities and net worth representing where resources come from).
Bob

Aaron Meadows

The Question this brings to mind is, "What are the Key Performance Indicators?" Typically, identified with SWOT, as presented in this training. I agree that the sources of cash flow can be identified through financial management.

Mario Miro

I AGREE!! Strong financial resources helps in understanding the financial growth of a company and how to make money from the resources is essential. Having a good understanding of the sources of financial health for your company will allow for good profitability.

Steve Aikala

I agree with this because one needs to know what his sources of money are and not just what money/assets they currently have. It's part of the process of looking forward as one forecasts, budgets, and plans.

Chrystie Rolle

I agree. Sound financial decisions are made by taking into account financial sources.

Ronald Massaro

I agree with the statement. One has to completely understand the entire business as it relates to finance in order to be profitable. A healthy bottom line is great, but if you have no idea on how to manage the nuances, you will never be a good financial planner or manager.

Betsy Napoleon

I agree totally with statement.Understand how to manage the ressources of the company is essential for a financial officer but I would add that understand the source of revenue for a particular indurstry allows the finance department to create more effective budget and therefore help increase the company income which is the ultimate objective of all for profit business company.

Sandra Sosa-Guerrero

Yes I agree. The leadership team should use a clear understanding of financial resources and financial sources. They should know how to use them to impact the bottom line.

Manuel Fernandez

I agree. I believe it is important for organizations to know its financial resources so that it can plan for the future (growth, downsizing as needed, reinvestment of capital,etc) as well as sources of revenue for continued growth or to find alternative sources of revenue.

Jay Hollowell

Catherine,

Thanks Catherine for your observations!

To your point, vision not only involves the destination and direction, but must address the process.

Jay Hollowell

Omar Diaz

I agree. Company managers should have enough vision to establish not only where they're driving the company but how they are going to get there as well. New Business and Cost Control go hand in hand when making a budget.
Planning, Communication and organization are key to a be successful company.

Jay Hollowell

Hi Sharon,

Thanks for your comments! And as you reference, procedures for obtaining funds and other resources is equally important to the sources of funding. To have someone on professional staff that is knowledgeable about the grant writing process, for example, is a real asset!

Jay Hollowell
ML141 Facilitator