How To Read & Analyze The Balance Sheet Like a CFO | The Complete Guide To Balance Sheet Analysis

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00:00 Agenda
01:29 Breakdown of Balance Sheet
06:10 Cash
08:45 Accounts Receivable
11:10 Inventory
12:04 Other Assets
12:52 Accounts Payable
15:02 Accrued Expenses
15:36 Deferred Revenue
16:27 Long Term Debt
I walk you through both the accounting and the strategic analysis of the balance sheet; and explaining the risk-based approach in analyzing the balance sheet accounts.
Get My Balance Sheet Metrics Excel & PDF Summary (seen in this video):
thefincontroller.com/p/getkpi...
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All views expressed on my channel are mine alone. Not intended as financial or professional advice.

[@TheFinancialController]

Hey guys - correction, the balance sheet date should say "As of Dec 31st" not "For the month ended Dec 31st", sorry for the error.

[@vinredhawk7294]

🙌

[@mahmoudalshami1557]

Do u have such course for Sr.accountant?

[@mayankvaid5454]

In finding day sales outstanding you have divided total receivable by total sales
Which i think is inappropriate because
Receivable also includes of some amounts which are older than 90 days
Which is some how can be imagined as bad debts for a movement.
Is it right or not?

[@deepakadhiraaijog7387]

Hi, also the EBIT was 325,000 and you mentioned 250,000.

[@memelogy737]

I have learnt more from you than 3 yrs at university studying accounting and finance. Keep the great work man your vids have helped me alot.

[@TheFinancialController]

Best thing I read all day

[@yt-nu4tm]

Vert true. Agreed

[@pranayakhadka3507]

Thank u sir...☺️☺️

[@jesseludenyo6436]

What!!? Which university is that?

[@rich3989]

The same thing for me

[@elliekay8616]

This helps me so much. I am a number thinker, which is hard when it comes to analyzing accounting. I focus on what numbers need to be where and making sure I balance, but I never take that other piece and apply comprehension to what I’m doing. This helps me SO much. Thank you.

[@mzikazityelo6242]

Wow!!! You've explained the balance Sheet so clearly and simple. You made it so easy to understand

[@victoriaullrich2278]

I really appreciate you taking the time to make this video. I have been out of school for awhile, and I have forgotten how to analyze financial statements. This video was very helpful in helping me remember.

[@TheFinancialController]

Thanks Victoria

[@vangelic.1591]

First ever video I've seen on UA-cam without a single dislike 👎, you're doing an outstanding job, thank you much 👏 🙏

[@zulfiqardurrani3483]

Great lecture,I am an accountant myself and a CPA aspirant..

[@rotimiabraham7784]

I found this helpful after leaving graduate school for a number of years and now trying to set up a hospitality focused fund . I have to refresh myself in doing FA. Thank you .

[@Prasad_Creations1]

This is the FIRST video I ever have seen, which PRACTICALLY gives THOROUGH knowledge about Balance sheet's interpretation! Thanks a lot sir!🙏🍫😊🙏 Lots of love from 🇮🇳Bharat (India)🇮🇳😊

[@jojojojo-pu1pt]

studied from your clips everyday has got me a good job. Thank you very much!

[@alejandroescoto6118]

This guy is a great teacher and explains things simly.

[@ShotokanShaun]

Thank you so much for posting this content. I always hoped to find a controller that would take me under their wing and train me; that hasnt happened yet. But I'm glad I found your channel until that time comes! Keep teaching us. We appreciate it.

[@TheFinancialController]

:) thanks for the kind words; keep on learning

[@borkobozickovic7241]

Your way of explaining is one of the best I've ever seen. Bravo!

[@TheFinancialController]

Thanks Borko!

[@HashBrown99Gaming]

Mate great video! Always good to hear from someone who works at a high financial position. That's where I aspire to be some day! Thanks again for sharing your knowledge :)

[@casper14301]

I can't believe this is free; keep up the incredible work!

[@oladobe]

Nice video teacher. I'm not fluent in English but I'm improving my skills. Thanks for the explanation! A hug from Brazil!

[@horacioumfurer1194]

Great explanation! it makes it so easy to understand how to read a balance sheet. Excellent work!

[@TheFinancialController]

Thank you!

[@madelinerose9620]

this was just beautiful!!! i shed a tear watching this video . I learned more with you than what i learned in grad school.

[@TheFinancialController]

Thank you!

[@gabrielguevara2823]

wow. fantastic job. well put together. i definitely have a better grasp of how to analyze a balance sheet! thank you so much!!

[@p.r.7776]

I enjoy your video very much. The content is practical and the way you present them is logical. I did not major in finance nor accounting and have been kinda jumping between finance and accounting roles, not out of my interest but just got pushed by “destiny”. Now I started to actually like the work. Hopefully I will eventually become as knowledgeable as you are.

[@TheFinancialController]

You will do great, I know it

[@christine3081]

Many things you teach are so valuable and can’t be found anywhere else on UA-cam. Thanks! Subscribed!

[@TheFinancialController]

Welcome aboard!

[@allansaflor4203]

Thank you for all the information you shared to us, this will help us to elevate our knowledge on how to analyzed financial statement.

[@TheFinancialController]

Great Allan

[@ramash95]

I'm a Ph.D student, and I don't have any experience with financial management and analysis. You video help me understand the basics of everything. Thank you for your time and hard work. Wish you all the best.

[@universalinformation572]

How did you complete Ph.D without knowing these basic concepts sir?

[@alkerdham]

Simple & straight to the point. Many thanks

[@simonkaleshu1193]

This is one of the best Analysis I have learnt today

[@franmcdonald4702]

I am brand new to this world and I am so glad I found your channel.

[@_crazystacy]

This is SO GOOD for my study and work! Thank you so much!!

[@yinyin7614]

Thanks for teaching me a lot. Keep watching your channel.

[@evansjuma3831]

Hi Bill, this is great presentation 👏. I would appreciate if you could please expound more on cash conversion cycle and how to balance AR and Inventory.
I would appreciate another deep dive on income statement items more so on the top down approach.
A big thank you 😊 🙏

[@TheFinancialController]

Will do! Thanks Evans

[@jasontsui2256]

Wow. This is indeed useful and inspiring. So to read and analyse the financial statements like a CFO is to be able to use financial ratios to analyse the numbers and make a meaning conclusion from it. I have been learning accounting for many years and learning financial ratios is not my favorite part. There are so many ratios out there and not easy to remember. Now I see it differently cos they are really very useful at work.

[@TheFinancialController]

Thanks brother. Glad you found it helpful

[@AndreA-qp6in]

Great video! Please make more videos like this. Also, I would really appreciate if you could advice some advance learning material on how to analyze financials and how to value business and level 2, 3 investments.

[@charlottekoona5203]

Clear. Very useful. You’ve got a new subscriber😊

[@anooopmurali]

Great content and presentation 🔥

[@TheFinancialController]

Thanks Anoop

[@shilpapatnaik5434]

Just want to Thank you sooo much for the videos.I have almost followed all your videos.Helps me instantly to refresh my accounting knowledge with in very short time.Thanks a tonn

[@TheFinancialController]

Thanks for watching

[@shilpapatnaik5434]

Thank u for responding to my comment.i request if you can make a video on deferred revenue expense with example and journal entries.

[@404TRUCKERTV]

bro, great video! I'm learning all this right now. I don't know professors ask like we have to remember all these formulas, when you use a cheat sheet in the real world.

[@TheFinancialController]

That’s right :)

[@mrpaolo1990]

Thank you Bill, your knowledge is worth thousands of dollars/pounds or in other currencies, many thanks again!

[@TheFinancialController]

Thanks Pawel!

[@user-tu2oh6ug9n]

I can listen to you and learn all day. Ty

[@ditrenh]

This is a great, clear video! Thank you sir!

[@hermandatinnon5677]

Thank you for the breakdown this has been so helpful.

[@TheFinancialController]

Great :)

[@matttejada7381]

I really can learn anything on YT and google. What a time to be alive! ❤️

[@natalia______8996]

Thank you very much for this easy explanation. I learn more watching this video than in my MBA from program

[@mumtazahmed8099]

Very helpful learning for the Management Executive's. Thank you.

[@abel39]

UA-camrs prove to be the best teachers, they are an asset. Some teachers (not all of them) are liability.

[@EvaWongWealthCoach]

Thank you for the presentation. Short and precise.

[@thehoneydeev]

Your knowledge transfer is much appreciated- thank you! New subscriber

[@navjotsandhu539]

Superb analysis you have taught lot many things pertains to FS. Thanx for your efforts.

[@nandakumarpurakkat6522]

Thank you...crisp ..simple...to the point...Presentation..

[@noredinilyas7130]

I like the way you are explaining the balan sheet its so amazing thank you so much ❤️❤️❤️🤛🏻

[@jamesforrest7322]

I have probably learnt more in this 21 minute video, than I have doing loads of accounting exams. Thanks so much.

[@janaesaffold2531]

I always come back and watch this video, every time I learn something new new

[@usernamegobrr8851]

3 years of uni taught us how to make financial statements but never taught us how to analyze them. Eventhough it sounds like creating financial statements does justice to the analysis part, I never really knew how they're linked to other statements (like aging schedule) I learnt so much more after watching this video.

[@TheFinancialController]

Glad you enjoyed the video!

[@erm105]

I love your videos! You explain them extremely easy to understand, specially since my background is not in accounting. Currently going for my CPA certification, so I can go into accounting.

[@colinisawesome2]

You’re the best. Thank you for doing what you do

[@inspiramind5445]

This is a great video. I will use it as part of my teachings which, I believe, will bring a lot of visitors to this video.
Thank you! 😊👍👍👍

[@TheFinancialController]

Great thanks 🙏

[@mikedaponte8030]

Great detail. Highly recommend!

[@normwho7]

Thank you, learned a lot, nice & clean presentation & great visual spreafsheet

[@ammie8937]

Thanks Bill, the video helps a lot, appreciated 😊

[@TheFinancialController]

My pleasure!

[@FundamentalEconomics]

One of the best videos on Finance i have seen so far... Hope will learn a lot from you Dear Respected Sir

[@TheFinancialController]

Thank you 🙏

[@mjkhalaf2452]

Great Videos, keep going.

[@RamJagtap]

Thanks a ton sir for your tremendous knowledge & skillsets which you have been sharing with us.
Really grateful to you & God bless you with abundance💫🙌

[@raghuveermaduvinakody379]

Stop calling anyone as sir / madam. Now atleast, come out of slavery mindset.

[@joseenriquemunar8901]

This is the firstt video i watch in you channel, I subscribe without knowing xD

[@radhikak0109]

Great explanation and very useful. Thank you

[@rohitvautre3159]

Thank you so much for this video and making it easier for us to understand.

[@divinegavor4639]

Learned a lot from you. Thank you!

[@akmalhijaz3584]

It really help me during this audit period. Thanks!

[@TheFinancialController]

Glad to help

[@vikasmehrotra8304]

Pretty much straightforward without any jargon language and explain beautifully.

[@TheFinancialController]

Thanks Vikas

[@veenakihunyu2663]

Thanks Financial Controller for the Knowledge Much appreciated. From Kenya.

[@MarcosLopez-cu6ui]

I declare you Master Finance Wizard! Keep the excellent content my friend👍

[@TheFinancialController]

Thanks brother

[@anamagdael8739]

Thank you for sharing, it's very helpful.🙏

[@Mw2magnet]

great video learned alot

[@nonysannkosi452]

This is very helpful for my MBA Reporting and Analysis Course, bear in mind I have no accounting background!

[@TheFinancialController]

Glad it was helpful!

[@htfitness9205]

Thank you for the detail explanation.

[@qww760]

You are a great instructor!

[@faithmpofu7856]

Great video indeed, well explained. I like it and have subscribed. Greetings from Zimbabwe 🇿🇼.

[@anshikachhabra8186]

Thanks for creating this video,relably it has given mkre than the mearnig i gained yet from education & courses. It has served an aspiration fullfillment relaxation.

[@TheFinancialController]

It's my pleasure

[@adeladel4752]

Great and useful video, you have clarified something to me in 2 min, really appreciate
Keep posting such interesting stuff please
Good luck

[@TheFinancialController]

Thanks Adel!

[@chyleswashington]

Bill Hanna! Man you make Accounting seem fun and I see the passion you have for it which is also encouraging! I'm currently in school and trying to see if I want to take an Accounting turn in my education! I have taken Managerial and Financial Accounting already which was a few years ago and I still understand the concept of Financial Accounting because I'm not really a fan of Managerial. Controller is where I think I'd want to be if I take this turn. I appreciate your expertise/skills and will continue to follow your videos man! God bless you! 🙏🏽

[@cashkitty3472]

If I was you then you need to study coding too. A lot of finance Jobs that strictly siding out b/s and p&p reporting will go and replaced by tech and it will be more on insights but mainstreaming systems too

[@dosth2255]

The way you explain the topic is excellent. Thanks a lot.

[@TheFinancialController]

Thanks and welcome

[@joyceleung7009]

Hi Bill, I am a new investor in the US market, find it really useful when you explain the 10Q report, I hope you could teach us more on how to rate a financial report since some companies share prices still plummeted with increasing dilute EPS or KPIs

[@gadgalleto5906]

ua-cam.com/video/BDRijpYfuBA/v-deo.html

[@krishanmohansharma8306]

Great explanation! Really to the point and. In Simpli the best 🙏👍

[@shomak8410]

I've learned so much. Thank you so much for sharing your knowledge.

[@TheFinancialController]

You are so welcome!

[@MrDesertFoxChannel]

I have been in the Finance for more than 21 years as Controller and i can say experience taught me that spelling and grammar is the basic skills you need to become a trusted one in Finance.

[@kevinwaycaster]

Are…

[@paolagarcia6910]

So helpful! Thank you so much!

[@nizarkoppilan5377]

Hi
Just finished this vedio
Great content and way of presentation is awesome
It’s really helps me to understand few concepts
Kindly continue the classes
God bless you

[@TheFinancialController]

Thanks Nizar!

[@Ctizen_sK]

Thank you Sir, i keep on coming back to your vids.

[@TheFinancialController]

Glad you like them!

[@SoothingRythms]

Thank you for the great presentation. It is an impressive refresher for me as an Accountant.

[@TheFinancialController]

Thanks

[@sky_finance]

Informative session with practical examples... keep going

[@TheFinancialController]

Thank you, I will

[@sackboymahalo]

Thank you very much for the explanation and sharing it. 😊👍 Cheers

[@kalimhashmi5380]

Very well explained.

[@dianseptopramono7878]

Great explanation Mr. Bill, thank you very much. stay safe

[@TheFinancialController]

Thank you!

[@nataliebaek7384]

thank you for the detailed explanation!

[@orpahanino6143]

👏🏾👏🏾👏🏾👏🏾my accounts lecturer was good but you do it better.

[@omerfarukylmaz2408]

It was amazing, I've appreciated that.

[@TheFinancialController]

Glad to hear that!

[@krishanmohansharma8306]

Thanks for uploading . Great help for me 👍

[@uyentruong1512]

Thank you for your informative video. It is very helpful.

[@alexsonga4742]

This is amazing.Thanks Bill for sharing

[@TheFinancialController]

Thanks Alex!

[@naghammerheb4274]

Thank you for this video, it's very helpful. I would like to ask what is the difference between Financial Leverage ratio described in the video (=Total Assets/ Total Equity) & the Degree of Financial Leverage (=%variation in EPS/% Variation in EBIT)

[@Anusheelpareek]

Great initiative. Keep doing.👍

[@bentley9249]

Liked and subed, thank you for the info, this was gold mate, greeting from Sydney Australia.

[@christianpetersen1782]

Excellent 👏 thank you very much. Subbed!