Financial management is an enterprise management discipline that studies how to manage capital movement through management activities such as planning, decision-making, control, assessment and supervision, so as to improve capital efficiency. It is a knowledge system formed by scientifically summarizing the financial management of enterprises and various departments of the national economy under the guidance of economic principles and economic management theories, combined with organizing productive forces and dealing with related issues of production relations.

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This paper mainly studies the determination of enterprise capital demand and its raising, putting, recycling and application, including the determination and calculation of the concepts of time value and risk value, the decision of raising funds, the decision of investment direction, the decision of dividend, the decision of capital income distribution and the daily management of working capital.

In order to ensure the realization and sustained growth of profits, capitalist enterprises must make their own long-term development plans and corresponding short-term plans on the basis of grasping the relationship between capital and profits, and organize their implementation. Modern western enterprise financial management studies how to make investment decisions, organize implementation and strengthen management according to the relationship between capital and profit.

In order to continuously improve the utilization effect of capital, ensure that enterprise operators are in a favorable position in the fierce competition and can obtain stable and growing profits. Since the 1970s, a large number of mathematical models have been used in the financial management of western enterprises when discussing issues such as participation in business decision-making, budget control and prior analysis.