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'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.
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.
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)🇮🇳😊
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 .
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.
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.
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
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.
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 :)
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! 🙏🏽
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
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 RU-vid and found this video 😁
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
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.
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.
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 :)
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?
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
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)
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💫🙌
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 🙏
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.
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.
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.
Can you do a tutorial on how Bank Accountant perform their duties. From posting entries to finalization. What are the usual transactions and how Accountant records and what are the journal entries for that etc. Thanks
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
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?
O ok man you look like one of my best friends, name was Tim, we use to ride everywhere and do everything together, we was riding our GXR1s, when a car hit him head on, killer him. Dude was so charismatic, he could get Osama bin Ladin to follow him, everyone wanted to be around him, he was 4 foot nothing but the man had such a personality. When I seen your thumbnail I had to click had to post and have to follow now. Wow thank you for looking like him and reminding me of him. Wow❤❤❤❤❤
You spelled equivalent wrong under current assets... sorry just had to bring it up lol. Thank you for the video. Definitely helping with my accounting course!
Great video. Oddly enough, from a financial management perspective the Libilities + Equity leg of the balance sheet is referred to as funding and the asset leg as investment Generally, you fund your investments to make more money so you always need to make sure that the return you get from your investments is more than what you have to pay your “funders”.
That's a good analysis. I like the way you have analyzed your financial position. You remind me of what I learnt from British Chartered Accountancy profession. After having understood how Americans analyze the balance sheet, I have respect for British qualifications because this was our food. I am sure I can handle a CFO position very well. If you have any links in USA let me have your email I will send you my CV. Thanks so much for your good understanding of financial reporting and analysis. I salute you!
Hello, I am really glad to meet your channel! My english is not really good but your pronunciation is quite clear and understandable compared to other channels. Instalike and instasubscribe! Nice work and keep it up! Rewards from Madrid, Spain
Great explanation! You got yourself a new subscriber! I want to ask you something please . I have a 2 years technical accounting dgree,(i studied in lebanon) and i know every single thing you said during your explanation, plus i can solve more complicated stuff, my question is: in the US, do they teach this in technical schools? Or you have to study for 4 years at university? Because i want to make sure if our teaching systems are the same. And thank you in advance!
Thank you very much for the Balance sheet analysis, I'm learning a lot. Can you please do a video explaining the AR Age Analysis, it's so confusing and I don't understand it. Like the one you showed in this video. Marvil and Sons Inc: Current $17 300.00, 1-30days $5 700, 31-60days $0, 61-90days $0, 9+days $3000 Why is 31-60 & 61-90 days $0 while he owes at current and 1-30 days and more confusing at 90+ days he owes again while at previous days was $0?
Another way to approach Asset = Liab + Equity is how the company is financing the assets - how much is financed by debt and how much is financed by the owner’s money (so to speak). It is a slightly more accurate way than yours because the company doesn’t “owe” money to the owners. If it does, it should have been recorded as debt.
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?
Thank you for the video. Would be interesting to analyze foreign government financial sheets to check the (many) inefficiencies you will find in the 9 figures range.
Excellent content with very simple and understandable way of knowledge transfer. Just one comment it would be good to explain what are acceptable ranges of solvency ratios i.e. Debt to Equity ratio of above 2 is not considered very healthy for an organization when the company is analyzed by the investors. Thumbs up 👍🏻 for your great effort
Dear Bill honestly this is a remarkable job. I LOVE YOU in a brotherhood way off course. I saw you are in Udemy too, good to know. Ps; the music doesn't help , you have a good voice please use that. Super.
Regarding AR - isnt a CFO supposed to think of AR’s composition in terms of currencies. I mean if the customers are based in different countries then we have an exposure to ForEx? Also, re inventory, isnt a CFO supposed to think of the control mechanisms to put in place to reduce the risks of theft or damage for that matter? Thank you for the info shared with us. It really helps
