Why Read It?
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Useful as a reference for managers wanting to improve their knowledge and skills in financial management.
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Examines the current issues and topics of financial management and corporate finance.
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Takes a practical approach to the subject, showing how to implement the concepts and techniques discussed.
Getting Started
The Essence of Financial Management provides a comprehensive overview of the theory and main techniques of financial management. It assists managers new to financial matters, and gives them a full understanding of the financial objectives of a business, the environment in which the business operates, and fundamental accounting concepts such as the balance sheet, P&L statement, and return on investment.
Author
David R. Myddelton taught at the School of Management, Cranfield University, for 40 years until retirement in 2005, having been Professor of Finance and Accounting since 1972. He is now the Emeritus Professor of Finance and Accounting at the School.
Context
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Aimed at those new to finance who are looking for a sound and useful primer on the topic.
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Defines the basic concepts and themes involved in financial management.
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Explores the problems financial managers face on a daily basis: time, uncertainty, liquidity, inflation, tax planning, and other critical issues.
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Includes a useful glossary.
Impact
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Presents all the financial management techniques a non-financial manager needs to know.
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Presents the four basic accounting concepts: going concern, accruals, consistency, and prudence.
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Advises on how to treat the components of interest rates, from term structure to short-termism.
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Details the uses of cash, working capital, and capital project appraisal.
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Examines borrowing and the cost of debt, and the main impact areas.
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Gives an overview on shares, the markets, and modern portfolio theory.
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Discusses corporate finance, including cost of capital, gearing, and mergers.
Quotations
“Both cash and profit matter, but people sometimes wonder whether one matters more than the other.”
“Equity investors cannot avoid market risk, which stems from the uncertainties of the whole economy.”
“Any change in the future prospects of a business—especially its future earnings or the risks involved—may affect a share’s present market value.”
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