section_path: Financial theory/Managerial finance
section_name: Managerial finance
paragraph_text: Managerial finance
  
  Managerial finance is the branch of finance that deals with the financial aspects of the management of a company, and the financial dimension of managerial decision-making more broadly.It provides the theoretical underpin for the practice described above, concerning itself with the managerial application of the various finance techniques.Academics working in this area are typically based in business school finance departments, in accounting, or in management science.
  
  The tools addressed and developed relate in the main to 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, as above, are about optimizing the overall financial structure, including its impact on working capital.Key aspects of managerial finance thus include:
  
  The discussion, however, extends to business strategy more broadly, emphasizing alignment with the company's overall strategic objectives; and similarly incorporates the managerial perspectives of planning, directing, and controlling.