Driving the bottom line through profitable revenue growth is likely the primary objective of virtually every company. But equally important is the need to improve margins. increase ROI control costs build market share. Next Previous Instharvarar600m Submit Quiz Even with a significant amount of cash shortage if its current assets are not turning to cash. a company can experience a assets debt working capital financial reserves When engaged in this process the financial managers within an organization should make certain that they use credible information as the basis for their recommendations regarding the company's business strategy Cash Budgeting Forecasting Capital Budgeting Cash Flow Analysis If a company is leveraged the earnings will be larger than the interest payments on the funds borrowed and as a consequence, stockholders will earn a than if equity financing were used. reduced share of ownership higher rate of return lower rate of return reduced level of profit