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?
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.
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.
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.
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 .
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.
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)🇮🇳😊
For a very long time this video was on my Watch later list. Today I watched it and a learnt a lot of things from it, the ratio analysis in particular. Thanks so much for making this video Bill!!!
Exactly. I’m taking financial accounting in my MBA this semester, and my professor isn’t making sense already. No accounting background. Turned to the trusty UA-cam and found this video 😁
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.
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.
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.
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 :)
I cant began to tell you how much I love your channel man... I have learned so much since the day i found your channel... I am the president of the accounting society/club at my school and I would be immensely grateful if you could fit it into your schedule to have a talk with us via zoom or even in person... whichever is more convenient for you. Im in Connecticut btw... please let me know if that would be possible
Trailing LTM Financial KPIs (alongwith customer verticals, business partnership in line with business strategy laid down by CEO) are reviewed for covenant compliance, cash position, FP&A, investment management etc. All this is covered in financiall model. No CFO goes into AP AR accrued expenses schedules etc what you did is actually a controller JD. Helpful for accountants.
KPIs. AR AP turnover, defensive intervals, liquidity ratios, financial leverages, CFOs, profitability ratios etc above all CFO makes sure business is strategically aligned by looking at key areas of business model i.e. geography, customers' verticals, competences, technological implications, market participants and trends etc. They spend more time on future planning rather than looking at past data for long discussion.
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.
I'm glad I find your channel, do you by any chance have video explaining about the balance sheet items? and shareholder's equity? I want to understand more about common stock, preferred stock, Treasury stock, I love finance as you do! any help 🙏
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.
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
One thing I would like to know. When a CFO analysis risk/stock effects of the company, do they consider the stock employee program? For example if all the front line workers take 10% into the buying stocks of the company. Is it considered what the stocks will look like when laying off those workers?
You should get whatever is needed such license, in order to start giving us certificates too. I have learned a lot more than I did after having spent 4 years at the university. you did real lame-ass work, I wish I had the means to reward you for this incredible work, bro.
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
Im studing for master degree in finance and this video helped soooo much to understand some basic concepts!. Ive got a question, the financial statements are done by accountants, the analytical process shouldnt be done by them as well? Ive seen that normally this is done by a CFO.
At small/mid size companies, the accountants perform the analysis. At Mid-large companies, the analysis is done by the FP&A team which rolls up to the CFO
I wish you could provide more details to that Balance Sheet Analysis in order to help in day trading and Investing strategies. It sounds like missing a lot of ratios :). Thank you for that great content.
Great video. You mention you can look at account receivable time schedule, and property plant & equipment more in depth. If i was analyzing a public company balance sheet, where would I find this information?
At 10:32,does sales and credit sales are same ? Because Sales need not to be credit sale always. One might pay cash during sale rather than putting the payment on hold.
Hello TFC, terrific overview, thanks for the walk-through! Regarding DPO, your formula = ( credit purchases / AP balance ) x # days in the period. However, other sources define DPO = ( AP balance / COGS ) x # days in period. I'm having a difficult time reconciling the two formulas. Do they both arrive at the same metric?
Hi there, you might want to correct this bit in your video - there formula for DPO is 'Accounts payable/ purchases X no. of days' not purchases/AP as indicated in the video
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.
Higher Debt/Equity doesn't necessarily means bad because lower debt may mean too conservative on investment. Return On Equity ratio or Return On Assert is more important
Level up your Accounting Career by enrolling in our 6-weeks program here controller-academy.com/courses/controller-academy
🙌
Do u have such course for Sr.accountant?
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?
Hi, also the EBIT was 325,000 and you mentioned 250,000.
UA-camrs prove to be the best teachers, they are an asset. Some teachers (not all of them) are liability.
I really can learn anything on YT and google. What a time to be alive! ❤️
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.
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.
Are…
Euqity is what you own, liability is what you owe, asset is what you have with you, which is what you owe + what you own.
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.
Glad you enjoyed the video!
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 .
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.
Best thing I read all day
Vert true. Agreed
Thank u sir...☺️☺️
What!!? Which university is that?
The same thing for me
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.
How did you complete Ph.D without knowing these basic concepts sir?
studied from your clips everyday has got me a good job. Thank you very much!
This guy is a great teacher and explains things simly.
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)🇮🇳😊
This channel is recommended for all ✅
I am brand new to this world and I am so glad I found your channel.
Wow!!! You've explained the balance Sheet so clearly and simple. You made it so easy to understand
Very well explained, this is a must-see for everyone who is running a business.
First ever video I've seen on UA-cam without a single dislike 👎, you're doing an outstanding job, thank you much 👏 🙏
I can't believe this is free; keep up the incredible work!
Great video I like your detailed narrative
Your way of explaining is one of the best I've ever seen. Bravo!
Thanks Borko!
This is one of the best Analysis I have learnt today
Best explanation from practical approch
Glad you liked it
this was just beautiful!!! i shed a tear watching this video . I learned more with you than what i learned in grad school.
Thank you!
For a very long time this video was on my Watch later list. Today I watched it and a learnt a lot of things from it, the ratio analysis in particular. Thanks so much for making this video Bill!!!
Glad it was helpful!
This is very helpful for my MBA Reporting and Analysis Course, bear in mind I have no accounting background!
Glad it was helpful!
Exactly. I’m taking financial accounting in my MBA this semester, and my professor isn’t making sense already. No accounting background. Turned to the trusty UA-cam and found this video 😁
Great lecture,I am an accountant myself and a CPA aspirant..
I can listen to you and learn all day. Ty
i learned a lot today thanks a lot
Glad to hear that
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.
Thanks Victoria
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.
Thanks brother. Glad you found it helpful
Very good, I learned a lot in watching this, it helps me to understand much more now about these sheets. Thank you.
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.
That’s right :)
Many things you teach are so valuable and can’t be found anywhere else on UA-cam. Thanks! Subscribed!
Welcome aboard!
The way you explain the topic is excellent. Thanks a lot.
Thanks and welcome
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 :)
Thank you!
Getting ready for the investment ops analyst interview tomorrow and your video is so great for interview prep.
Best of luck!
Thank you...crisp ..simple...to the point...Presentation..
Nice video teacher. I'm not fluent in English but I'm improving my skills. Thanks for the explanation! A hug from Brazil!
Very helpful learning for the Management Executive's. Thank you.
outstanding instructions. Very detailed with the explanation and I wasnt bored at all.
Glad you enjoyed it!
I cant began to tell you how much I love your channel man... I have learned so much since the day i found your channel... I am the president of the accounting society/club at my school and I would be immensely grateful if you could fit it into your schedule to have a talk with us via zoom or even in person... whichever is more convenient for you.
Im in Connecticut btw... please let me know if that would be possible
Hey Peter. Email me. We can arrange something for sure
@@TheFinancialController absolutely, I will wait for the semester to start, then I will shoot you an email. Thanks bro
I declare you Master Finance Wizard! Keep the excellent content my friend👍
Thanks brother
Trailing LTM Financial KPIs (alongwith customer verticals, business partnership in line with business strategy laid down by CEO) are reviewed for covenant compliance, cash position, FP&A, investment management etc. All this is covered in financiall model. No CFO goes into AP AR accrued expenses schedules etc what you did is actually a controller JD. Helpful for accountants.
KPIs. AR AP turnover, defensive intervals, liquidity ratios, financial leverages, CFOs, profitability ratios etc above all CFO makes sure business is strategically aligned by looking at key areas of business model i.e. geography, customers' verticals, competences, technological implications, market participants and trends etc. They spend more time on future planning rather than looking at past data for long discussion.
Thank you for all the information you shared to us, this will help us to elevate our knowledge on how to analyzed financial statement.
Great Allan
Thank you very much for this easy explanation. I learn more watching this video than in my MBA from program
Thank you, learned a lot, nice & clean presentation & great visual spreafsheet
Thanks for teaching me a lot. Keep watching your channel.
I always come back and watch this video, every time I learn something new new
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.
It's my pleasure
I'm glad I find your channel, do you by any chance have video explaining about the balance sheet items? and shareholder's equity? I want to understand more about common stock, preferred stock, Treasury stock, I love finance as you do! any help 🙏
I do have some videos on these topics and more to come soon
I am more interested in accounting since I watched your videos, bravo!
Happy to hear that!
7:02 why there is so much difference between the average and median networth?
Superb analysis you have taught lot many things pertains to FS. Thanx for your efforts.
Great content and presentation 🔥
Thanks Anoop
Thank you for the detail explanation.
The analysis of balance sheet is very good.
Thank you Sir, i keep on coming back to your vids.
Glad you like them!
Beneficial Video, I'm not in the financial field, but still grasp almost all information 👍
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.
:) thanks for the kind words; keep on learning
One of the best videos on Finance i have seen so far... Hope will learn a lot from you Dear Respected Sir
Thank you 🙏
Thanks Financial Controller for the Knowledge Much appreciated. From Kenya.
Great and useful video, you have clarified something to me in 2 min, really appreciate
Keep posting such interesting stuff please
Good luck
Thanks Adel!
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
Thanks for watching
Thank u for responding to my comment.i request if you can make a video on deferred revenue expense with example and journal entries.
Great explanation! it makes it so easy to understand how to read a balance sheet. Excellent work!
Thank you!
One thing I would like to know. When a CFO analysis risk/stock effects of the company, do they consider the stock employee program? For example if all the front line workers take 10% into the buying stocks of the company. Is it considered what the stocks will look like when laying off those workers?
Best summary of the financial statement analysis from management POV. Auditors also look for the same.
Hello
Very well explained...i am CA from India :) this has been really helpful
Thanks Sonia
Simple & straight to the point. Many thanks
This is the firstt video i watch in you channel, I subscribe without knowing xD
Great explanation and very useful. Thank you
Thank you for the presentation. Short and precise.
Could you do a similar video for the income statement and cash flow please!
Sure will do
@@TheFinancialController Please do a similar one for the Income Statement and Cash Flow
👏🏾👏🏾👏🏾👏🏾my accounts lecturer was good but you do it better.
I've learned so much. Thank you so much for sharing your knowledge.
You are so welcome!
Clear. Very useful. You’ve got a new subscriber😊
You should get whatever is needed such license, in order to start giving us certificates too. I have learned a lot more than I did after having spent 4 years at the university. you did real lame-ass work, I wish I had the means to reward you for this incredible work, bro.
This is SO GOOD for my study and work! Thank you so much!!
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
ua-cam.com/video/BDRijpYfuBA/v-deo.html
You’re the best. Thank you for doing what you do
Great video indeed, well explained. I like it and have subscribed. Greetings from Zimbabwe 🇿🇼.
I always watching this ur video channel, Sir.. and gonna waiting another best video from you. Regards From Indonesia 🇮🇩
Im studing for master degree in finance and this video helped soooo much to understand some basic concepts!. Ive got a question, the financial statements are done by accountants, the analytical process shouldnt be done by them as well? Ive seen that normally this is done by a CFO.
At small/mid size companies, the accountants perform the analysis. At Mid-large companies, the analysis is done by the FP&A team which rolls up to the CFO
Thank you Bill, your knowledge is worth thousands of dollars/pounds or in other currencies, many thanks again!
Thanks Pawel!
I wish you could provide more details to that Balance Sheet Analysis in order to help in day trading and Investing strategies. It sounds like missing a lot of ratios :). Thank you for that great content.
Great video. You mention you can look at account receivable time schedule, and property plant & equipment more in depth. If i was analyzing a public company balance sheet, where would I find this information?
Masha allah.you are a great teacher.i like to listen your videos .Thank you very much.
At 10:32,does sales and credit sales are same ? Because Sales need not to be credit sale always. One might pay cash during sale rather than putting the payment on hold.
Pretty much straightforward without any jargon language and explain beautifully.
Thanks Vikas
It is interesting how I learned more in 25 minutes on a free youtube video than I have learned in a $50,000 program at a 4-year university!
Is it possible for you to increase the volume? Its barely legible in my PC. Please help us, if you can.
Thank you very much for the explanation and sharing it. 😊👍 Cheers
Hello TFC, terrific overview, thanks for the walk-through! Regarding DPO, your formula = ( credit purchases / AP balance ) x # days in the period. However, other sources define DPO = ( AP balance / COGS ) x # days in period. I'm having a difficult time reconciling the two formulas. Do they both arrive at the same metric?
Hi Dennis. Your formula is correct. I got it almost reversed 😅thanks for pointing this out, some paid close attention;)
Request to please highlight this comment so that others get correct information.
I have probably learnt more in this 21 minute video, than I have doing loads of accounting exams. Thanks so much.
Thank you teacher Love from singapore
Sir this was a very good class.. great
Glad you liked it
Hi there, you might want to correct this bit in your video - there formula for DPO is 'Accounts payable/ purchases X no. of days' not purchases/AP as indicated in the video
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.
Happy New Year! 🎉
Higher Debt/Equity doesn't necessarily means bad because lower debt may mean too conservative on investment. Return On Equity ratio or Return On Assert is more important