Key Financial Indicators for Growth and Competitiveness

Abstract

The smooth running of a business depends a lot on how effective the cash flows of the company are being managed. Managing the receivables and payables i.e. Working Capital Management of the company is of prime importance for day to day activities. Managing the long term investment decisions is also important for the growth and future objectives of the firm.

This paper deals with the importance of key financial indicators for a firm's growth and to sustain in the competitive environment. The approach has been divided into two parts viz. Short Term Finance Management and Long Term Finance Management, along with the Key Financial Performance Indicators for both the approaches.