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Financial strength |
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Financial strengthThe measure of a company's solvency, looking at the relationship between its assets and its liabilities.Similar MatchesFinancial crisisFinancial crisisA loss of confidence in a country's currency or other financial assets causing international investors to withdraw their funds from the country. Financial leverageFinancial leverageUse of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity. Combined financial statementCombined financial statementA financial statement that merges the assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a consolidated financial statement of a company and subsidiaries, which must reconcile investment and capital accounts. Dupont system of financial controlDupont system of financial controlHighlights the fact that return on assets (ROA) can be expressed in terms of the profit margin and asset turnover. Institute of Financial PlanningInstitute of Financial PlanningThe UK professional body committed to the development of financial planning. The Institute was set up in 1986 and draws its members from accountancy, insurance, taxation, stockbroking, education and legal professions. Its stated objectives include 'promotion of the profession and practice of financial planning, increasing public awareness for the need for financial planning, creating of recognised professional qualifications for members, ensuring professional standards through a Code of Ethics and screening of new members, encouragement of education in the theory and practice of financial planning and the sharing of knowledge with other professionals'. A financial planner may be from any relevant professional background.To obtain Associate status a planner must hold a relevant professional qualification such as the Advanced Financial Planning Certificate (AFPC) and have three years related experience. Fellowship is available subject to the passing of a further examination and a longer period of experience. A list of Certified Financial Practitioners is established in the 'Registry' and is available to members of the public from the Institute. These practitioners are independent and are obliged to offer a fee basis. They must be prepared to offer a financial planning service separate from investment business if requested by a client. Reference to a Certified Financial Planner would usually be relevant to people seeking a higher level of advice or those with more complex requirements. Further SuggestionsNonfinancial assetsFinancial institution buyer credit policy Corporate financial management Financial assets independent financial adviser Financial instrument Corporate financial planning Financial account Financial ratio Perfectly competitive financial markets Financial future Financial distress Financial Intermediaries Managers and Brokers Regulatory Association Financial institution financial adviser Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No 52 Nonfinancial services Financial planning financial futures Financial Services Act 1986 Financial public relations Notes to the financial statements Financial price risk London International Financial Futures and Options Exchange |
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