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Financial Manager Ratio Analysis

907 Words4 Pages

1. The financial manager is a person responsible for the supervision and handling of the financial affairs of an organization. He have the most varied role in the organization, every decision made by the financial manager will impact the whole organization. In a retail store, the main duties of the financial manager is developing ways of making the store more profitable, planning for new systems implementation, preparing and interpreting the quarterly profit statement to influence the priorities of the Management Team.
Profit earning is one of the prime functions of any business organization. Profit arises due to many factors such as pricing, industry competition, state of the economy, demand and supply, cost and output. …show more content…

The financial manager must decide how to use the money of the company.
The financial manager also must ensure that the business has enough cash to pay their upcoming liabilities and preparing the financial statements to the higher management. It is the responsibility of a financial manager to decide the ratio between debt and equity. It is important to maintain a good balance between equity and debt. Words: (287)
2. Financial Planning is a long term profit planning aimed at generating greater return on assets, growth in market share. Budget is an estimation of revenue and expenses over a specified future period of time, expressed in monetary terms. Budget also serves as a plan of action for achieving quantified objectives, standard for measuring …show more content…

Budget can coordinate the activities of the various part of the business and ensure that the parts are in harmony with each other. A budget also assist managers in managing and controlling the activities for which they are responsible, by comparing the actual results with the budgeted amounts for different categories of expenses. So, managers can concentrate on deviations so they can identify inefficiencies, when the reason of inefficiencies have been found, appropriate corrective action should be taken to remedy the situation.
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3. Commercial manager must be an experienced individual, will play an important role in monitoring, optimizing and reporting the commercial and contractual performance of projects. To be a commercial manager, an individual must have different skills and qualities; like being a team player, work under pressure, manage time effectively, negotiating skills, financial planning, managing risk, good communicator, strong networking and presentation skills, goal oriented.
Financial planning is a primary function of a commercial manager. A commercial manager might meet with financial managers and managerial accountants to set budgets and develop financial

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