AFM: Concepts and Practice · Part C: Financial Management

Chapter 14: Financial management and ratio analysis

What financial management aims at, and how a banker reads a borrower through four families of ratios.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 14.1Financial management: goal and decisionsp. 185
• 14.2Ratio analysis; liquidityp. 186
• 14.3Leverage and debt servicep. 187
• 14.4Turnover; the operating cyclep. 188
• 14.5Profitability and DuPontp. 189
• Exam traps and quick checksp. 190
• Practice: 16 questions in three roundsp. 191
• Answers, with every wrong option explainedp. 193
• Make it stickp. 195
• Chapter 14 on one pagep. 196

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.