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

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  • Опубликовано: 11 янв 2025

Комментарии • 671

  • @TheFinancialController
    @TheFinancialController  2 года назад +70

    Level up your Accounting Career by enrolling in our 6-weeks program here controller-academy.com/courses/controller-academy

    • @vinredhawk7294
      @vinredhawk7294 2 года назад +1

      🙌

    • @mahmoudalshami1557
      @mahmoudalshami1557 Год назад +1

      Do u have such course for Sr.accountant?

    • @mayankvaid5454
      @mayankvaid5454 Год назад

      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
      @deepakadhiraaijog7387 7 месяцев назад

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

  • @memelogy737
    @memelogy737 4 года назад +630

    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.

  • @matttejada7381
    @matttejada7381 2 года назад +41

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

  • @abel39
    @abel39 Год назад +6

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

  • @elliekay8616
    @elliekay8616 2 года назад +53

    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.

  • @rotimiabraham7784
    @rotimiabraham7784 2 года назад +3

    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 .

  • @ramash95
    @ramash95 2 года назад +28

    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
      @universalinformation572 8 месяцев назад

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

  • @usernamegobrr8851
    @usernamegobrr8851 Год назад +5

    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.

  • @mzikazityelo6242
    @mzikazityelo6242 2 года назад +37

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

  • @jojojojo-pu1pt
    @jojojojo-pu1pt 2 года назад +14

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

  • @Prasad_Creations1
    @Prasad_Creations1 Год назад +3

    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)🇮🇳😊

  • @victoriaullrich
    @victoriaullrich 4 года назад +50

    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.

  • @vangelic.1591
    @vangelic.1591 3 года назад +8

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

  • @MrDesertFoxChannel
    @MrDesertFoxChannel 3 года назад +5

    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.

  • @borkobozickovic7241
    @borkobozickovic7241 3 года назад +7

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

  • @oladobe
    @oladobe 2 года назад +3

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

  • @alejandroescoto6118
    @alejandroescoto6118 3 года назад +6

    This guy is a great teacher and explains things simly.

  • @zulfiqardurrani3483
    @zulfiqardurrani3483 3 года назад +21

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

  • @madelinerose9620
    @madelinerose9620 2 года назад +2

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

  • @swaminathanj2814
    @swaminathanj2814 3 месяца назад +1

    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!!!

  • @nonysannkosi452
    @nonysannkosi452 10 месяцев назад +2

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

    • @TheFinancialController
      @TheFinancialController  10 месяцев назад +1

      Glad it was helpful!

    • @JoseMcKinney-lu6wt
      @JoseMcKinney-lu6wt 4 месяца назад

      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 RUclips and found this video 😁

  • @novemconsulting
    @novemconsulting 3 месяца назад +2

    Very well explained, this is a must-see for everyone who is running a business.

  • @franmcdonald4702
    @franmcdonald4702 Год назад +1

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

  • @allansaflor4203
    @allansaflor4203 4 года назад +13

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

  • @ShotokanShaun
    @ShotokanShaun 3 года назад +21

    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.

  • @hari4406
    @hari4406 10 месяцев назад +4

    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.

  • @casper14301
    @casper14301 2 года назад +2

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

  • @natalia______8996
    @natalia______8996 Год назад +1

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

  • @christine3081
    @christine3081 2 года назад +1

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

  • @mumtazahmed8099
    @mumtazahmed8099 Год назад +2

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

  • @jasontsui2256
    @jasontsui2256 2 года назад +6

    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.

  • @TomSpencer-d8d
    @TomSpencer-d8d 10 месяцев назад +1

    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 :)

  • @petertenay1785
    @petertenay1785 Год назад +1

    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

    • @TheFinancialController
      @TheFinancialController  Год назад

      Hey Peter. Email me. We can arrange something for sure

    • @petertenay1785
      @petertenay1785 Год назад

      @@TheFinancialController absolutely, I will wait for the semester to start, then I will shoot you an email. Thanks bro

  • @simonkaleshu1193
    @simonkaleshu1193 8 месяцев назад +1

    This is one of the best Analysis I have learnt today

  • @glasgowsongwriter85
    @glasgowsongwriter85 3 года назад +3

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

  • @404TRUCKERTV
    @404TRUCKERTV 4 года назад +5

    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.

  • @horacioumfurer1194
    @horacioumfurer1194 3 года назад +10

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

  • @RichieRichIIII
    @RichieRichIIII 4 месяца назад +2

    This channel is recommended for all ✅

  • @shilpapatnaik5434
    @shilpapatnaik5434 4 года назад +4

    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
      @TheFinancialController  4 года назад

      Thanks for watching

    • @shilpapatnaik5434
      @shilpapatnaik5434 4 года назад

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

  • @michaelmaharlika8569
    @michaelmaharlika8569 6 месяцев назад +1

    Very good, I learned a lot in watching this, it helps me to understand much more now about these sheets. Thank you.

  • @dosth2255
    @dosth2255 Год назад +1

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

  • @leelamanohar1663
    @leelamanohar1663 3 месяца назад +2

    Best explanation from practical approch

  • @mrpaolo1990
    @mrpaolo1990 3 года назад +3

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

  • @MarcosLopez-cu6ui
    @MarcosLopez-cu6ui Год назад +2

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

  • @janaesaffold2531
    @janaesaffold2531 2 года назад +1

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

  • @soniarai7316
    @soniarai7316 2 года назад +1

    Very well explained...i am CA from India :) this has been really helpful

  • @anshikachhabra8186
    @anshikachhabra8186 9 месяцев назад +1

    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.

  • @barbarac2458
    @barbarac2458 Месяц назад

    outstanding instructions. Very detailed with the explanation and I wasnt bored at all.

  • @loganyang619
    @loganyang619 9 месяцев назад +1

    I am more interested in accounting since I watched your videos, bravo!

  • @FundamentalEconomics
    @FundamentalEconomics 3 года назад +1

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

  • @evansjuma3831
    @evansjuma3831 4 года назад +22

    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 😊 🙏

  • @navjotsandhu539
    @navjotsandhu539 2 года назад +1

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

  • @allans7281
    @allans7281 4 месяца назад +2

    Great video I like your detailed narrative

  • @anooopmurali
    @anooopmurali 4 года назад +19

    Great content and presentation 🔥

  • @LobnaLFI
    @LobnaLFI 2 месяца назад

    Beneficial Video, I'm not in the financial field, but still grasp almost all information 👍

  • @joseenriquemunar8901
    @joseenriquemunar8901 Год назад +1

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

  • @AndreA-qp6in
    @AndreA-qp6in 2 года назад +8

    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.

  • @digestedcrane4237
    @digestedcrane4237 2 месяца назад

    Getting ready for the investment ops analyst interview tomorrow and your video is so great for interview prep.

  • @yj9032
    @yj9032 2 года назад +1

    Best summary of the financial statement analysis from management POV. Auditors also look for the same.

  • @adeladel4752
    @adeladel4752 Год назад +1

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

  • @veenakihunyu2663
    @veenakihunyu2663 3 года назад +1

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

  • @BEKINDTOOTHERS-l2y
    @BEKINDTOOTHERS-l2y 3 года назад +1

    I can listen to you and learn all day. Ty

  • @nandakumarpurakkat6522
    @nandakumarpurakkat6522 Год назад +1

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

  • @yinyin7614
    @yinyin7614 3 года назад +1

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

  • @joyceleung7009
    @joyceleung7009 3 года назад +9

    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
      @gadgalleto5906 3 года назад

      ruclips.net/video/BDRijpYfuBA/видео.html

  • @JAQ1988
    @JAQ1988 3 года назад +1

    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.

    • @JAQ1988
      @JAQ1988 3 года назад

      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.

  • @p.r.7776
    @p.r.7776 2 года назад +3

    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.

  • @elvissaputrasigalingging3816
    @elvissaputrasigalingging3816 2 года назад +1

    I always watching this ur video channel, Sir.. and gonna waiting another best video from you. Regards From Indonesia 🇮🇩

  • @orpahanino6143
    @orpahanino6143 Год назад +1

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

  • @HashBrown99Gaming
    @HashBrown99Gaming 3 года назад +3

    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 :)

  • @faithmpofu7856
    @faithmpofu7856 2 года назад +1

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

  • @erm105
    @erm105 2 года назад +15

    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.

  • @vikasmehrotra8304
    @vikasmehrotra8304 3 года назад +1

    Pretty much straightforward without any jargon language and explain beautifully.

  • @Ctizen_sK
    @Ctizen_sK 11 месяцев назад +1

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

  • @chyleswashington
    @chyleswashington 3 года назад +5

    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
      @cashkitty3472 2 года назад

      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

  • @fbagli22
    @fbagli22 7 дней назад

    Thanks!

  • @Jamal-rk1bk
    @Jamal-rk1bk 2 года назад +1

    Masha allah.you are a great teacher.i like to listen your videos .Thank you very much.

  • @normwho7
    @normwho7 Год назад +1

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

  • @_crazystacy
    @_crazystacy 2 года назад +1

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

  • @charlottekoona5203
    @charlottekoona5203 2 года назад +1

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

  • @mialarssen2627
    @mialarssen2627 3 года назад +3

    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.

  • @gabrielguevara2823
    @gabrielguevara2823 3 года назад +3

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

  • @alkerdham
    @alkerdham 2 года назад +1

    Simple & straight to the point. Many thanks

  • @robotlife
    @robotlife 3 года назад +49

    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?

    • @TheFinancialController
      @TheFinancialController  3 года назад +23

      Hi Dennis. Your formula is correct. I got it almost reversed 😅thanks for pointing this out, some paid close attention;)

    • @bhumikagupta5075
      @bhumikagupta5075 3 года назад +8

      Request to please highlight this comment so that others get correct information.

  • @noredinilyas7130
    @noredinilyas7130 3 года назад +1

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

  • @nizarkoppilan5377
    @nizarkoppilan5377 3 года назад +2

    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

  • @blixerblacking4211
    @blixerblacking4211 Год назад +1

    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 🙏

  • @rejivarkey3797
    @rejivarkey3797 Год назад +1

    The analysis of balance sheet is very good.

  • @colinisawesome2
    @colinisawesome2 2 года назад +1

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

  • @mohammedaminearrakhiz5356
    @mohammedaminearrakhiz5356 3 месяца назад +2

    i learned a lot today thanks a lot

  • @Cl8410
    @Cl8410 10 месяцев назад

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

  • @RamJagtap
    @RamJagtap 2 года назад +6

    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💫🙌

  • @bamurangeadelaide8139
    @bamurangeadelaide8139 3 года назад +1

    Me It's the first time here !please i need to learn more and more about accounting and finance thanks @ Kigali /Rwanda

  • @BOGUEINLETROB
    @BOGUEINLETROB 2 года назад

    Check out my accounting tutorial vids if ya need more help: ruclips.net/video/YegNNTBweQ4/видео.html

  • @radhikak0109
    @radhikak0109 Год назад +1

    Great explanation and very useful. Thank you

  • @hermandatinnon5677
    @hermandatinnon5677 4 года назад +5

    Thank you for the breakdown this has been so helpful.

  • @naghammerheb4274
    @naghammerheb4274 2 года назад +5

    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)

  • @AZ-qb6zv
    @AZ-qb6zv 3 года назад

    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

  • @ammie8937
    @ammie8937 4 года назад +5

    Thanks Bill, the video helps a lot, appreciated 😊

  • @eclock87
    @eclock87 3 года назад +13

    Could you do a similar video for the income statement and cash flow please!

    • @TheFinancialController
      @TheFinancialController  3 года назад +2

      Sure will do

    • @tk2188
      @tk2188 3 года назад

      @@TheFinancialController Please do a similar one for the Income Statement and Cash Flow