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Financial management has immense potential to affect the profitability of the enterprise. This potential is immersed in both the aspects of financial management, be it mobilization of funds or deployment of funds.These aspects naturally involve several variables such as equity share capital, share premium, reserves , debenture and other long term liabilities, current liabilities including creditors, bank advances, provisions and other current liabilities, fixed assets, investments, current assets including debtors, cash & marketable securities, inventories, advances made, deferred revenue expenditures etc.Multiplicity of these variables and the varying degree of influence they exert on the profitability of the enterprise make the task of finance managers extremely difficult. They simply cannot concentrate on all the variables. They have to master the art and science of ascertaining the important variables exerting substantial influence on the profitability. This book provides considerable help in putting up a step forward in acquiring the skill to ascertain important variables affecting the profitability of the enterprise.