Financial management is described as “the management of finances of a company in order to achieve financial objectives”.
What this consists of is generally all the financial planning, control of finances and decisions both in the long term and the day to day running of the business to keep the business running on course. In terms of Bovis ltd, this will include effectively managing all the assets that it has, such as cash and inventories,
as well as using financial projections and past records to determine the long term sustainability and survival of the business whilst hopefully maintaining or increasing profit levels.
In the past years there has been significant changes in investment and by using the Thomson One database, to see this financial data , we can look at the main changes in investing, how the company has been financed, and the amount of dividends if any it has being paid out.
Using the data from both non current and current assets we can see how the investment has changed over the ten years.
The most significant change is the increase year on year of current assets, and in particular to the total inventories the company holds. From 1999 to 2007 there has been a gradual increase investment from £382 mil to £951mil with a decrease only from 2007 to 2008. It is interesting to note that the majority of the increase in inventories is actually purchasing land for future development and not actually the finished houses themselves.( Bovis Report,2008)
This is definitively a positive point for Bovis as the nature of the company is building and selling houses and to see its inventories increasing it shows that is expanding in the amount it is building. It could show that it is building more houses and not selling them but by looking at the income statement we can see sales rising so can assume that expansion is the case here.
A factor for the decrease between 2007-2008 is that some of the land held for future...