Financial Terms: Financial Profit

What is financial profit?

The so-called financial profit is the profit created directly and indirectly by the financial management and financial operation. It means that finance is more than just Spend money Departments are also profitable sectors.

The way to obtain financial profits

There are two types of financial profit models:

The first is financial management profit. Enterprises can not only earn business profits, meanwhile It can also create profits through management, such as through the overall structure. reasonable The reduction of potential cost brought by operation to enterprises. In the process of financial management, the direct cost is reduced by avoiding waste, and the profit is increased correspondingly. This profit is the profit of financial management.

The second is capital profit. Capital profit is a profit generated by capital operation such as asset reorganization, merger and acquisition, such as profit generated by successful backdoor listing, that is, capital profit.

In short, the impact of financial management on enterprises is huge. To some extent, financial management determines the success or failure of enterprises.