CFO BIGGEST CONCERN

CFOs daily face varied financial issues. Among these are strategic planning, budgeting and forecasting, compliance with local regulations and internal policies, profitability.

Among the above, profitability analysis is the biggest on the chart of many CFOs. The reason why profitability is main concern of CFO is because, any other decision as to planning, budgeting, compliance would arrow down to the return accrued over the assets invested. Shareholders on many occasions need dividend on their investment, employees on the other hand would like to know the rate of their next pay increase. The creditors and bankers want to know the profit level of a company before advancing any credit facility. The social stake holders want to know how much the company spend on social responsibilities.

So the main driver for CFO analysis is profitability.