Financial Management

Explore the dynamic world of financial management in the hospitality industry with our comprehensive content. Uncover essential strategies for short-term financing, cash and inventory management, capital budgeting, and valuation techniques tailored for hotels and restaurants. Learn to navigate financing decisions, risk analysis, mergers, acquisitions, and dividend policies. Mastering these concepts is crucial for driving profitability, managing resources effectively, and ensuring sustainable growth in a competitive market.

Financial Management

1 Short-Term Financing and Planning

  1. Tracing Cash and Net Working Capital
  2. Defining Cash in Terms of Other Elements
  3. The Operating Cycle and the Cash Cycle
  4. Some Aspects of Short-Term Financial Policy
  5. Cash Budgeting
  6. The Short-Term Financial Plan
  7. The Short-Term Financial Plans in India

2 Cash and Inventory Management & Receivables Management

  1. Reasons for Holding Cash
  2. Determining the Target Cash Balance
  3. Managing the Collection
  4. Investing Idle Cash
  5. Need to Hold Inventory
  6. Inventory Management Techniques
  7. Terms of the Sale
  8. The Decision to Grant Credit: Risk and Information
  9. Optimal Credit Policy
  10. Credit Analysis
  11. Collection Policy

3 Financing Decisions, Risk Analysis and Capital Budgeting

  1. Financial Institutions, Markets and Instruments
  2. The Capital Structure
  3. Financing Options
  4. Leasing/Franchising
  5. Risk and Value in the Hospitality Firm

4 Valuation of a Hospitality Firm/ Corporation

  1. Qualitative Factors that affect Valuation: location, star rating, feedback area
  2. Discounted Cash Flow Approach
  3. Cash Flow to Equity Approach
  4. Cash Flow to Firm Approach
  5. Weighted Average Cost of Capital Beta and Leverage
  6. Relative Valuation or Multiples

5 Inorganic Growth, Dividends and Other Payouts

  1. Basic Forms of Acquisitions
  2. Synergy
  3. Sources of Synergy
  4. Friendly vs. Hostile Takeovers
  5. Defensive Tactics
  6. Do Mergers Add Value
  7. Different Types of Dividends
  8. Standard Method of Cash Dividend Payment
  9. Dividend Policy Irrelevance
  10. Repurchase of Stock
  11. Repurchase of Shares in India
  12. Personal Taxes and Dividends
  13. Real-World Factors Favouring High-Dividend Policy
  14. ESOP’s (Employee Stock Ownership Plans)
  15. Stock Dividends and Stock Splits