This module aims to provide students with a comprehensive knowledge of the theoretical foundation and framework for Financial Management. It aims to provide students with transferable analytical skills that can be applied in various business scenarios.
The nature and scope of Financial Management (10%)
Financial strategy and organisational objectives for commercial and not-for-profit organisations;Financial strategy and the role of the financial manager;Corporate social responsibility towards shareholders and society.
The Financial Management Framework (20%)
The role of commercial banks, stock markets and financial intermediaries;The Efficient Markets Hypothesis and its implications;The international money and capital markets;The nature and purpose of stock exchanges and the implications of obtaining a stock market listing;
Financial Statement Analysis and Interpretation (35%)
The financial statements and their role as providers of information for investors;The uses and limitations of using metrics and ratio analysis;Operating performance;The importance of cash flows;Users of financial statements;Solvency and liquidity ratios;Debt management: gearing/leverage metrics;Asset management and efficiency metrics;Profitability and Stock Market metrics;Trend analysis;Horizontal analysis and Common Size Statements;International accounting practice;Other factors affecting financial performance and position and share values;
Working Capital Management (35%)
The nature and importance of working capital management;The operating working capital cycle and cash flow;Working capital investment; Calculation of working capital requirements;Shortening the cash cycle;Methods employed to manage inventory/stock, receivables/debtors and cash;Main elements of trade credit policy and assessment methods for creditworthiness of a credit customer;The stages in the debt collection process;Analysis of aged receivables/debtors;Remedies for bad debts; The management of trade payables/creditors and bank overdrafts;Optimum inventory levels- safety stocks, EOQ, JIT, MRP, and the impact of outsourcing;Financial implications of different working capital policies;Working capital problems of the small business;Overtrading: causes, effects and remedies.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |