Financial Management

Attention should be given to the following areas:

●      If there is any over-investment.

●      How much economical is the cost of capital received?

●      If the organization is getting maximum returns for the capital employed.

●      If there is any over-investment, that should be sold and similarly, unutilized fixed assets should be eliminated. Slow-moving or non-moving inventories should be removed and should transfer this surplus to the working capital to re-invest it in a cycle of more profitable area of business.

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