Finance of company

The finance of company is the sector of the economy which is interested in the decisions and financial transactions, tools financial and financial balances of the Entreprise S.

In the Undertaken S, it is the Finance manager which makes the decisions in these fields. But of other actors intervene in finance of company, in particular the Banque S and the Actionnaire S.

The goal

The companies must:

to make a diagnosis of their financial performances (see financial Analysis).
to plan their development
to have financial means necessary the to their growth,
to make profitable these means as well as possible by the choice of Investment S

Great fields

Long-term missions

the Choice of investment, i.e. identification of the likely appropriatenesses Investment of to create value
the financing of the Investment S retained, starting from the Stockholders' equity , of the loan S or the Self-financing.

Short-term missions

the companies must take care of close with their Trésorerie, in particular to face the expiries of payment, to avoid the Découvert S, and to optimize their Placement S short-term.
they must manage their cycle of Exploitation, i.e. to supervise the level of their Stock S, their credits customers and their Dettes of exploitation.

Criteria of effectiveness

Three criteria of a financial good management of company are of this fact:

the Profitability (to attract the Stockholders' equity )
the Solvency (to allow the recourse to the loan S)
the liquidity (to face their engagements of short-term payment)

See too

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