Enjoyed this video? Then subscribe to the channel right now, and let's dive deeper into two key terms on the income statement: Gross Margin and Operating Margin ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-VCMJzG1AaXA.html
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Happy to help, Hema! Nice to hear you enjoyed it. More case studies (Apple, Tesla, etc) of the various financial statements in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-J_1F8GoLOI8.html&pp=gAQBiAQB
Great to hear that, Bahar! I hope you will find many useful videos on my channel. Here is a playlist with some of the key accounting-related videos that I made so far: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-b93KBmcXanI.html
Hello - I have just discovered your Channel and watched this video. It is absolutely fantastic ! The amount of information provided is just right, the speed and clarity of delivery is just right, the length of the video is just right. Thank you very much for giving me one of the clearest explanations of the income statement. I will look forward to studying your other material. Best Regards,
Thank you so much for the kind words, Reza! Very happy to hear that. Yes, I have plenty of videos that could be of interest to you: deep dives into various aspects of the financial statements, case studies to get the big picture... Enjoy!!! And let me know what you think of them.
Mate, your videos work so well for me. The examples at the start just help me learn, and I don't know how or why that is so effective. Context must be everything for me. Thanks.
Thank you for the kind words! So happy to hear that. Yeah, I love real world financial statements as well, that's where the real complexity (or simplicity) comes out. What I am trying to say: real life can be either far more complicated or far simpler than a textbook will make you believe. I have taken the same approach to discuss the balance sheet ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eIjCaeNm-Vk.html and the cash flow statement ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mZBjsIYrLvM.html Maybe those videos are helpful for you as well! More in general, my finance case studies playlist could be good for you to browse through: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html
@@TheFinanceStoryteller yes thank you, need these videos in my life right now. Currently studying for CFA 1 through my job. My main job is trading and portfolio mgmt so the financial reporting and analysis is brand new to me! Thanks for replying and best regards to you.
Hope you will have a lot of fun with it! Here's the link to my finance case studies playlist, where I cover a lot of the important concepts along the way: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html And here are my thoughts on how to get started with a financial analysis: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jG-oXx54qxE.html
Thank you for the walkthrough, really informative. If you ever could, please make a video going through everything in an annual financial report. From start to bottom. Would like to see your insight as you go along reading the employees messages, the financial numbers, notes etc...
Thank you for the kind words! I have made a few videos about reading an annual report (both from the perspective of seeing the full picture ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Kw-1nopchnA.html , as well as individual key sections such as the MD&A ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-LD6YBBtpEcs.html and the understanding of operating segments ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-8IDQtBn902Q.html ).
As good as fk, I am trying to learn the financial statement from scratch for investment purposes. Most material like Textbook or MIT open-course doesn't have a solid example. They just throw me tons of undefined terms for me to decode. Truly appreciated Sir.
Hello Ivan! Yeah, let's start with real world financial statements, and "peel the onion" layer by layer to get to the core of what is happening. Here is my playlist of financial statement case studies of companies you may have heard of: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html
I have no way to forecast the future for any company.... All I know is that Microsoft has done very well in the past few years, and continues to adapt, change and grow. If I had some cash lying around, I would buy shares in Microsoft, but sadly I am already fully invested. Fortunately, I have some biotech and software stocks in my portfolio that have done equally well as Microsoft. :-)
My pleasure, Luiz! Did you watch the related videos on the balance sheet ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eIjCaeNm-Vk.html and the cash flow statement ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-mZBjsIYrLvM.html as well?
My pleasure! More finance case studies of the financial statements of real world companies in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html
Thanks for sharing your videos! I just gave my brother a link to your financial statements playlists since he asked me about public company valuation. Do you have any plans to release any videos on how to build a financial model or how to do financial modeling overall?
That is great, Jeff! Thank you for spreading the word! If you are looking for a financial model to build a business plan, then I have a short video for you: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-FC0ZODWFzpo.html You could also use this model as a starting point for public company valuation, but then you'd need to use the flawed CAPM-based WACC to discount expected future values to present values ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1O-DbtVueMw.html Personally, I split my modest stock market investment portfolio 50/50 between ETFs and individual stocks ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-GBLNKbOgQ4w.html I recommend reading "The Black Swan" and "Antifragile" by Nassim Taleb for a very different approach to investing (getting away from financial modeling of the inherently unpredictable future).
Very happy to hear that, Aishah! You might like the related video on the balance sheet as well: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eIjCaeNm-Vk.html
Hello Maria! Yes, once you understand the basics, it is easy to follow. For more financial statement case studies, see this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html
Hello Jake! In my view, the best example of other income for companies like Alphabet Inc (Google), Apple and Microsoft is the interest income that these companies generate on their portfolio of cash, cash equivalents and marketable securities. This is "non-operational" income, in other words income that does not come from a company's main business of selling products and services. See for example my balance sheet analysis for Alphabet Inc: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-XKSOswE-_6c.html
Dear Sir, I am given some figures as exercise. I feel like to ask 2/3 items please. I have net value of vehicles at year end, Balance at bank and depreciation. I think I should leave the 2 figures, Vehicule value and Bank balance for Balance sheet and depreciation as expense in Income statement. Am I right ? Heppy to know you online. You are great!
Hello Sunny! I think you are correct. See also my video on the relationship between income statement and balance sheet, that will clarify things for you! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-wZdaVEX41WQ.html
Hello sir I am a non accounting student and would like to know the two important information captured in the financial performance statement and financial position statement most useful to the users
Hello Sheenal! That is an excellent question. You will probably get different answers, when you ask different persons. My response is: Operating Margin, and Free Cash Flow. See my related video on business plan financials to understand the link between them: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-FC0ZODWFzpo.html
Hello Lorean! My apologies, I should have explained that in the video. The percentages I calculated are relative to revenue. So for example gross margin % is the gross margin $ divided by the revenue $, in this case $82.9B divided by $125.8B = 66%. Hope that helps! If you need any further explanation, let me know, and I will be happy to help.
Yes! But for a group of a parent company and its subsidiaries combined, as if they were a single company: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-DTFD912ZJQg.html
Hello Vincent! Download the Microsoft annual report, and take a look. On Microsoft's income statement, it says "for the year ended June 30" in the top left corner. A year equals 12 months, therefore their fiscal year starts in July and ends in June.
This was awesome! This motivated me to upload my own take on The Income Statement! 📈 Would love your feedback and support. Keep on inspiring and spreading the knowledge!🧠
Hello Elmar! Yes, I have used various locations in the house and various equipment over time to record the audio. More recent videos sound better. And there's always the option of switching off the sound and switching on the subtitles. ;-)
Taxes are calculated on profit in the income statement, not on equity on the balance sheet. If profits are negative (in other words the company makes a loss) then a deferred tax asset situation could occur: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-MvXAljQD4II.html
Thank you for such a fantastic outline of what the income statement is and what to look at while analyzing. I am a visual learner and therefore the provided case study and zooming in on what is to be looked at really helped. Hartelijk dank
Thank you for the kind words! Yeah, it makes a lot more sense if you have the picture right in front of you, and somebody talking you through it. That's how I build up almost all my videos. More cases studies in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PI9X5Ybek_E.html
