Overview, company objectives, stakeholders, performance measurement and not-for-profit objectives

In this lesson

1. 0:00 Financial Management and Company Objectives Overview
2. 1:14 Three Core Financial Decisions: Financing, Investment, Dividend Policy
3. 4:41 Analysing Financial Data to Support Decision Making
4. 7:52 Company Objectives and Strategic Hierarchy
5. 9:25 Financial Objectives and Shareholder Wealth Maximisation
6. 14:06 Total Shareholder Return and Earnings Per Share
7. 20:03 Non-Financial Corporate Goals and Stakeholder Interests
8. 22:46 Agency Theory and the Agency Problem
9. 25:16 Corporate Governance and Alignment of Interests
10. 29:12 Performance Measurement Through Ratio Analysis
11. 35:53 Investor Ratios and Gearing Analysis
12. 39:22 Not-for-Profit Objectives and Value for Money

About this lesson

You'll discover what financial objectives really mean, why shareholder wealth matters more than profit alone, and how to measure performance using key ratios and metrics. This session covers the strategic framework that underpins FM, AFM and SBL papers, giving you the foundation to understand how financial managers create value. You'll explore company objectives and stakeholder groups—from shareholders and directors to employees, customers and suppliers—and understand the agency problem that arises when managers' interests conflict with those they represent. The session explains how corporate governance, performance measurement and incentive schemes work together to align management behaviour with organisational goals. The lesson then moves into practical performance measurement techniques. You'll work through ratio analysis across profitability, liquidity, investor and gearing ratios, seeing how to calculate and interpret metrics like return on capital employed, earnings per share, and interest cover. Real worked examples show you how to measure total shareholder return and absolute versus relative growth in earnings per share. Finally, you'll learn how not-for-profit organisations approach objectives differently, using value for money as their primary measure. The three E's framework—economy, efficiency and effectiveness—shows you how charities, government bodies and public sector organisations balance cost, resource use and service delivery to meet their mission.

Duration: 43m