Chapter 4
Managing numbers
What topics are covered in this chapter?
- Prioritising profit
- Breaking the link between strategic planning
- and budgeting
- Measuring performance
- Managing risk
- Interpreting numerical data
A manager needs to understand enough about finance and accounting to ensure two things: profitability and sound risk management. The rest, from earnings per share to the latest regulatory ruling, are for others to worry about. If a manager can get a firm hold on free cash flow and how to control it, he will be streets ahead of his rivals.
It is all too easy for companies to lose sight of their need to make a profit. When a company starts out, cash flow is foremost in everyone’s mind. But as the company grows and the sources of financing ...
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