Financial Management of Goldman Sachs

To ensure comely returns to the sh arholders which will depend upon the earning might, market price of the sh atomic number 18, expectations of the sh atomic number 18holders. 3. To ensure optimum currency utilization. Once the funds are procured, they should be utilized in maximum realistic behavior at least cost. 4. To ensure rubber eraser on investment, i. e, funds should be invested in safe ventures so that adequate rate of return plenty be achieved. 5. To plan a sound upper-case earn structure-There should be sound and fair composition of groovy so that a balance is maintained between debt and equity capital.Functions of Financial Management 1. Estimation of capital requirements A finance manager has to make estimation with regards to capital requirements of the telephoner. This will depend upon expected be and benefit and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise. 2. Determination of capital composition Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis.This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from international parties. 3. Choice of sources of funds For additional funds to be procured, a company has many choices like- a. Issue of shares and debentures b. Loans to be taken from banks and financial instaurations c. Public deposits to be drawn like in form of bonds. Choice of factor will depend on sexual intercourse merits and demerits of each source and period of financing. 4.Investment of funds The finance manager has to decide to allocate funds into paid ventures so that there is safety on investment and regular returns is possible. 5. Disposal of surplus The net profits decision have to be made by the finance manager. This bottom be done in two ways d. Dividend declar ation It includes identifying the rate of dividends and other benefits like bonus. e. Retained profits The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company. 6.Management of cash Finance manager has to make decisions with regards to cash management. currency is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, shock current liabilities, maintainance of enough stock, purchase of raw materials, etc. 7. Financial controls The finance manager has not solely to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. When we use the terms Goldman Sachs, the firm, we, us and our, we mean The Goldman Sachs Group, Inc. (Group Inc. ), a Delaware corporation, and its consolidated subsidiaries. References to this Form 10-K are to our Annual Report on Form 10-K for the financial year ended celestial latitude 31, 2011.All references to 2011, 2010 and 2009 refer to our fiscal years ended, or the dates, as the context requires, December 31, 2011, December 31, 2010 and December 31, 2009, respectively. Group Inc. is a bank prop company and a financial holding company regulated by the Board of Governors of the Federal Reserve System (Federal Reserve Board). Our U. S. depository institution subsidiary, Goldman Sachs Bank USA (GS Bank USA), is a New York State-chartered bank. As of December 2011, we had offices in over 30 countries and 48% of our total staff was based outside the Americas (which includes the countries in North and South America).Our clients are set worldwide, and we are an active participant in financial markets around the world. In 2011, we generated 38% of our net revenues outside the Americas. BUSINESS PRINCIPLE Our clients interests always come first. Our experience shows that if we serve our clients well, our own success will follow. Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore. We are dedicated to complying fully with the letter and spirit of the laws, rules and ethical principles that govern us.Our continued success depends upon unswerving adherence to this standard. Our goal is to provide superordinate returns to our shareholders. Profitability is critical to achieving superior returns, building our capital, and attracting and keeping our best people. Significant employee stock owinership aligns the interests of our employees and our shareholders. We take enceinte pride in the professi onal quality of our work. We have an uncompromising determination to achieve excellence in everything we undertake. Though we may be involved in a wide vvariety and heavy volume of aactivity, we would, if it came to a choice, rather be best than biggest.We stress creativity and imagination in everything we do. While recognizing that the old way may still be the best way, we constantly strive to find a better tooth root to a clients problems. We pride ourselves on having pioneered many of the practices and techniques that have become standard in the industry. We make an unusual effort to identify and recruit the very best person for every job. Although our activities are measured in billions of dollars, we select our people one by one. In a service business, we manage that without the best people, we cannot be the best firm.We offer our people the oopportunity to move ahead more rapidly than is possible at most other places. Advancement depends on merit and we have yet to find the limits to the responsibility our best people are able to assume. For us to be successful, our men and women must reflect the assortment of the communities and cultures in which we operate. That mearns we must attract, retain and motivate people from many backgrounds and perspectives. Being diverse is not elective it is what we must be. We stress team upwork in everything we do. While individual creativity is always encouraged, we have found that team effort often produces the best results.