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{{Corporate finance}}
{{Accounting}}
'''Managerial finance''' is the branch of [[finance]] that concerns itself with the financial aspects of managerial decisions.
[[Finance]] addresses the ways in which organizations (and individuals) raise and allocate monetary resources over time, taking into account the risks entailed in their projects;
Managerial finance, then, emphasizes the [[management|managerial application]] of these [[financial analysis|finance techniques]] and theories.{{Citation needed|date=June 2025}}

The techniques assessed (and developed) are drawn in the main from [[managerial accounting]] and [[corporate finance]]; 
the former allow management to better understand, and hence act on, financial information relating to profitability and performance; 
the latter are about optimizing the overall financial-structure;
see {{slink|Financial management#Role}}.

In both cases, the discipline addresses these from the Managerial perspectives of Planning, Directing, and Controlling;{{Citation needed|date=June 2025}}
here in the more specific context of [[strategic planning]], organizing, directing, [[Control (management)|and controlling]] of the organization's [[Finance#Corporate_finance|financial undertakings]].

Academics working in this area are typically based in [[business school]] finance departments, in accounting, or in [[management science]]. 

==Managerial accounting techniques==
{{Further| Management accounting#Scope, practice, and application}}
{{also|Financial accounting #Objectives}}
Management accounting techniques are applied in the preparation and presentation of financial and other decision oriented information "in such a way as to assist management in the formulation of policies and in the planning and control of the operation undertaking".
The analytics here are thus concerned with forward-looking decisions, as opposed to the historical and compliance perspective of [[financial accounting]].

Undertaking these tasks, financial managers use various [[management accounting]] and [[financial analysis]] techniques  to accurately assess the results and performance of the business lines and units, and to monitor resource allocation within the organization; 
this includes
[[profitability analysis]] and [[cost analyst|cost analytics]]  
– employing techniques such as [[activity based costing]], [[whole-life cost]] analysis, [[cost–volume–profit analysis]], and [[Variance (accounting)|variance analysis]] – 
as well [[budget analyst|budget analytics]] more generally.
(See also [[cash flow forecast]] and [[financial forecast]].)

==Corporate finance techniques==
{{Further|Financial economics#Corporate finance theory|Outline of corporate finance}}
Managerial finance is, as above, also focused on the overall financial-structure of the business, including its realized impact on cash flow and profitability. It is thus interested in long-term revenue / business optimization, while also minimizing the potential impact of any financial shocks on short term performance.  To accomplish these goals, managerial finance addresses techniques utilized in [[Corporate finance]], usually organized re the following:
* [[Working capital management]] - addressing short term [[current assets]] and [[current liabilities]] and optimizing cash flow
* [[Capital budgeting]], i.e. selection / [[Valuation (finance)|valuation]] and funding of [[Project#Corporate_finance|"projects"]] – addressing long term investments 
* [[Capital structure]] and [[dividend policy]] – addressing long-term [[financial capital]] and attempting to [[Corporate_finance#Capitalization_structure|optimize the balance sheet]].
The discipline also considers the various [[Financial risk management#Corporate finance|applications of risk management]] here.

==See also==
* [[Capital management]]
* [[FP&A]]
* [[List of accounting topics]]
* [[List of management topics]]
* [[Managerial economics]]

==References==
{{Reflist}} 

==Further reading==
* Jonathan Lewellen (2003). [https://web.archive.org/web/20070224230915/http://ocw.mit.edu/OcwWeb/Sloan-School-of-Management/15-414Financial-ManagementSummer2003/Calendar/index.htm Financial Management], [[MIT OpenCourseWare]] 15.414 
* Weston, Fred and Brigham, Eugene (1972), ''Managerial Finance'', Dryden Press, Hinsdale Illinois, 1972
* Chen, Henry editor, (1967), ''Frontiers of Managerial Finance'', Gulf Publishing, Houston Texas, 1967
* Brigham, Eugene and Johnson, Ramon (1980), ''Issues in Managerial Finance'', Holt Rinehart and Winston Publishers, Hindale Illinois,
* Lawrence Gitman and Chad J. Zutter  (2019). ''Principles of Managerial Finance'', 14th edition, Addison-Wesley Publishing, {{ISBN|978-0133507690}}. 
* Clive Marsh (2009). ''Mastering Financial Management'', Financial Times Prentice Hall {{ISBN|978-0-273-72454-4}}
*James Van Horne and John Wachowicz (2009). ''Fundamentals of Financial Management'', 13th ed., Pearson Education Limited. {{ISBN|9780273713630}}

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[[Category:Corporate finance]]
[[Category:Financial management]]
[[Category:Corporate development]]
[[Category:Management accounting]]