Hiya - this was very insightful. Do I need to sign up to Investor Center to access your spreadsheets. Furthermore, can you please make a video about how to determine growth percentage when forecasting metrics such as revenue or costs?
@@user-ph1ui9jg6d yes. I’m going to post all of my spreadsheets that accompany my videos to the patreon. In terms of the growth rates, I’m working on a video for that!
@@InvestorCenter Thanks so much for your response. is there any other way of staying in touch for example: linkedin or instagram or is youtube the best way?
You mentioned early in the video that you didn’t know why companies would close their books in September instead of December. It’s usually due to “seasonality”, when sales are at their lowest in the year coming off of the summer months. Therefore Net Working Capital [NWC (= Inventories + Receivables - Payables +/- Net Accruals)] should be at its lowest in September. Don’t forget Apple usually releases new products in the 4th quarter so inventory levels should be at their lowest at the end of September. By Closing the books when NWC is at its lowest, Capital employed will also be at its lowest. This will maximize ROCE. Also, it’s just best to close in the quarter with the slowest activity so as not to distract the company from the busy holiday season. Most retailers also operate in this fashion.
Most retailers (not Apple) end their FY at end of January. Very few end in December because there is too much Y/Y noise due to calendar shifts. This is also where you squeeze in a 53rd week every 6-7 years.
This is one of the best videos I've ever watched on income statements and really filled a lot of gaps I had in my knowledge of why I should care about different items. I would LOVE to see you do a DCF video.
Thanks so much for this video. I hope you also teach us how to analyse balance sheets and cash flow statements and the financial model too coz I personally am still unclear about that
Love the idea behind this video and how you kept it simple. Can you go over projections in a separate video we’re you give a few examples /repetitive so it will the process”sinks in” and we can better apply it to different companies/modules. Thank you.
This video has been super useful, thanks! And it would be great if you could do another video on estimating future earnings from the income statement. Thanks!
I like your channel and I also like to suggest The Interpretation of Financial Statements: The Classic 1937 Edition Book by Benjamin Graham and Spencer Barrett Meredith For the ones with the desire to learn beyond your great channel
Great 👍 👌 job, thanks a lot, how do you determine if a company is undervalue today? Maybe when you have time you can make a video about it. Thanks again. 😊
I've read alot of textimonies about people grabbing multi-figures weekly and monthly as income in investments, even in this crazy days in the market baffles me.
Great, great presentation, I really enjoyed the way you showed how to make a discounted cash flow model in a simple and objective way. I'm studying valuation, but it's really hard to find practical content online, it would be awesome to see a whole series on how to make a proper valuation of a stock and how to read all the three key financial statements (Balance sheets, Cash flow and Income Statement) and how to use the financial ratios (PE, Price to book... ) with a detailed breakdown of each one.
I'm in complete awe at how I went from living an average life to making over 63k per month. It's amazing. The financial markets are full with opportunities, but I've learned a lot over the past few years to doubt that. The key is knowing where to focus. Well appreciated, Mr SAM DEYMON.
It's really profiting I started with 30k dollars trading with a professional broker my colleague recommended to me to Mr Sam Deymon, and now I earn more than my monthly paycheck.
Nearly half of millennial millionaires have at least 25% of their wealth in cryptocurrencies, according to the CNBC Millionaire Survey. In the coming years, the key to attracting the next generation of wealthy clients could be more about crypto than traditional stocks, bonds, private equity and hedge funds.
Hi! Quick question, I am currently second year finance student in college. do you think that I should research on my own to learn stock market analysis? Or do you think that a fund or my college me everything I would need to know? Thank you!
I would recommend studying Warren Buffett, Charlie Munger, Bill Ackman, and Mohnish Pabrai! My channel has a lot of good videos for you to start learning :)
Lol don't listen to the comments posted. This is like a crash course. There's a lot more information you can get from a companies financials. I would recommend taking an online class in accounting at a college. Its a couple thousand max. But you'll make it back fast.
Discounted Cash Flow Evaluation would be so helpful if we were explained in detail. What an amazing channel. Just found this channel looking for how buffet calculates intrinsic value and what a library of information, I stumbled across. Thank You! Investor Center, for delivering amazing Content and great VALUE!
Your videos like this are so much better than anything else on RUclips. Please make videos about how to analyze the cash flow statement and balance sheet please!
The different fiscal year end dates are caused by the company's adoption of four periods per year consisting of 13 weeks each. Notice each of the four periods end on a saturday. This method causes each of your quarterly reports to contain the same number of weeks (13) and each of your fiscal years to contain exactly 52 weeks. It makes accounting a little more complex but yields exact comparability. Sometimes an accountants nightmare, but worth it in the long run.
Great video, I am very interested in how you set up the income statement for predicting the future performance of the company. I would love a video on how you set that up and as you mentioned deriving the cash flows from that. Thanks
For anyone reading later on- some companies don’t align to calendar year if they follow set 4-5 week periods for better comparison to other periods. This is common in manufacturing. I’m sure there are other reasons as well.
Your videos are wonderfully put together. I would greatly appreciate if you do a DCF model video in the future. You explain things with great ease and would be helpful to understand your view point on discounting cash flows. Thank you and keep up the great work!
Great video! I came across your channel today and started watching many of your videos while taking notes. I love how detailed you explain things still while trying to keep the overall video compact. I would be very interested to see a video from you on discounted cash flow valuation. Also, happy new year!
I don't have time to watch through 11 minutes of it, so I just paused the statement, and took a look. 1- The sales are increasing, but not proportionately, so the outcome isn't very rosy; the percentage increase in sales is a decline. 2- The percentage rise in cost of sales has declines, which means that the product has some market recognition and demand, so the marketing expenses have fallen. Not much difference in the percentage of general expenses over the years. The operating income has risen in a percentage trend, so that is a plus. Depreciation hasn't changed substantially, so that is also good. The business has serviced debt, so that is good, but the cost of debt-serving has risen, so for that I'd need to take a look at the balance sheet.Percentage increase in income before taxes. The business looks good, but the growth in sales isn't very impressive.
The reason why some companies report its financial statements not on the year end it is because they report their FS when the company is on slack season which means movement of assets are very slow, in which the management believe it would capture or would be more representative of the company financial position
Let me explain why some companies like Apple will have an income statement end in Sep 25. For one, Apple is trying to be as exact as possible in comparing their activities. That means each income statement compares 365 days of activity, hence this is the reason why 2020 moved up 2 days (because of the leap year). The 2nd part, is because Apple is so large, it takes them a long time to put all their financials in order. Every statement needs a begin date and an end data date and will use the remaining time to compile the data, review, and approve by the end of year. Seems like Apple just needs a big head start in order to be able to report by end of calendar year.
Companies may have a different operating year vs a calendar year because of the difference in the actual rhythm and pacing of industry and corporate activities.... december may be the calendar year ending but if you have commercial property developers as customers, they might be awarding projects tight near the december as they wait on most of their calendar year results and as a company you might wait for results of projects, costs and billing until january. Managment may finish annual plans by end of 1st month and do a kick off by start of second month, and performance evals and targetting setting might be finished by end of 2nd month. so actual first month of implementation might be by 3rd month already... For hospitality, summer might be peak business, so waiting for all the operating results to come in after might be better.. some companies that export to internationally like japan, may have to align their operating year more closely tk theirs.. it could be a lot of things for different industries, just remember jan to dec timeline is a bit arbitrarily selected..
I'm only halfway through the video and I just have to say your explanations are by far the best I have heard so far. I've been researching how to analyse companies for investment for months, it's been slow progress. Although I was familiar with most of the terms you were speaking about, my understanding of them just trippled thanks to your breakdown of each of them. Thankyou so much I will now prioritize this chanel first, amazing video 😄
What is a ready-to-go site that lists a company’s financial report? I’m trying to find one for the company I work for and only see old ones from past years and the most recent ones look nothing like this video, but numbers all over the place and not in a concise form. But an expense on page 7, and income on 3, etc. Is there a site where financial statements can be seen from any company that has to make them public?
If the product sales is underperforming the sales if services shouldn't the company focus on trying to improve product sales growth? If I were the CEO or whatever of a company I will always work to maintain the areas of business that are already doing well but my focus is always going to be in what is underperforming and how there needs to be improvement in that area as a CEO I focus on the areas of concern that need attention paid to them not areas that are already doing well and don't need to be focused on as much at the moment.
Where is operating margin at 8:38? Why did it disappear? Also, Gross Margin is shown as an amount when zoomed out & not a percentage which was not explained.
Title: "How to Read and Analyze an Income Statement: A Guide Using Apple as an Example" Summary: In this informative video, the presenter emphasizes the importance of understanding and analyzing a company's income statement, a crucial skill for successful investing. The key takeaways from the video are as follows: 1. **Introduction to the Income Statement**: The income statement is one of three fundamental financial statements (alongside the balance sheet and statement of cash flows) used to report a company's financial performance over a specific period. 2. **Breakdown of Income Statement Elements**: The income statement breaks down a company's revenue (income from sales), expenses (costs of production, employees, rent, etc.), and ultimately, profit (revenue minus expenses). 3. **Practical Example Using Apple**: The presenter uses Apple's income statement as an example, highlighting how publicly traded companies are required to disclose their financial information for public access. 4. **Revenue Segmentation**: Companies often break down their revenue into segments or categories (e.g., products and services) to provide investors with a more detailed view of their performance. 5. **Gross Margin**: Gross margin is calculated by subtracting the cost of goods sold from revenue and dividing the result by revenue. A higher gross margin indicates stronger pricing power, and investors generally want to see this margin increasing over time. 6. **Operating Expenses**: Operating expenses include research and development (R&D) and selling, general, and administrative (SG&A) costs. Analyzing these expenses relative to total revenue can reveal cost management efficiency. 7. **Operating Profit and Margin**: Operating profit is the profit before taxes and interest. Operating margin (operating profit divided by revenue) reflects how much of each dollar of revenue is turned into profit. Higher operating margins are generally preferred. 8. **Other Income and Expenses**: These are income and expenses outside the scope of the company's normal operations. 9. **Earnings Before Taxes and Net Income**: Earnings before taxes (EBT) is the profit before tax expenses, and net income is the final profit figure. 10. **Financial Modeling**: The presenter briefly mentions creating financial models to project a company's future profitability based on different growth rates, gross margins, and operating expenses. 11. **Projections**: Projections can help investors estimate a company's future financial performance, but they should be based on reasonable assumptions. The video provides a comprehensive overview of how to analyze an income statement, using Apple as an example. It also hints at the importance of financial modeling for evaluating investment opportunities.
If you are interested in downloading the spreadsheets I used to analyze stocks, you can download them here: www.patreon.com/user?u=38414104
@ehvio the second and third tier
Hiya - this was very insightful. Do I need to sign up to Investor Center to access your spreadsheets. Furthermore, can you please make a video about how to determine growth percentage when forecasting metrics such as revenue or costs?
@@user-ph1ui9jg6d yes. I’m going to post all of my spreadsheets that accompany my videos to the patreon. In terms of the growth rates, I’m working on a video for that!
@@InvestorCenter Thanks so much for your response. is there any other way of staying in touch for example: linkedin or instagram or is youtube the best way?
Thank you for the video.
Can you do a video about balance sheet analysis as well?
You mentioned early in the video that you didn’t know why companies would close their books in September instead of December. It’s usually due to “seasonality”, when sales are at their lowest in the year coming off of the summer months. Therefore Net Working Capital [NWC (= Inventories + Receivables - Payables
+/- Net Accruals)] should be at its lowest in September. Don’t forget Apple usually releases new products in the 4th quarter so inventory levels should be at their lowest at the end of September. By Closing the books when NWC is at its lowest, Capital employed will also be at its lowest. This will maximize ROCE. Also, it’s just best to close in the quarter with the slowest activity so as not to distract the company from the busy holiday season. Most retailers also operate in this fashion.
Wow! That is very interesting. And it makes sense that most of the companies I see with a September year end are retailers
wow ..great insight ! thanks a ton ! How about Microsoft it closes in Jun ??
@@InvestorCenter Thank you and I just want to say that your videos are excellent!
Most retailers (not Apple) end their FY at end of January. Very few end in December because there is too much Y/Y noise due to calendar shifts. This is also where you squeeze in a 53rd week every 6-7 years.
can you explain in a little more detail, how the capital employed would be at the lowest at sept?
This is one of the best videos I've ever watched on income statements and really filled a lot of gaps I had in my knowledge of why I should care about different items. I would LOVE to see you do a DCF video.
Thank you, Josh!!!
Thanks so much for this video. I hope you also teach us how to analyse balance sheets and cash flow statements and the financial model too coz I personally am still unclear about that
I’m working on those videos now! Thanks for the comment, Allen
@@InvestorCenter looking forward to it!😁✌🏾
Love the idea behind this video and how you kept it simple. Can you go over projections in a separate video we’re you give a few examples /repetitive so it will the process”sinks in” and we can better apply it to different companies/modules. Thank you.
This video has been super useful, thanks! And it would be great if you could do another video on estimating future earnings from the income statement. Thanks!
one day maybe Rob Mauer will do a video like this. i think that was his full time job.
Really clear and well made video. I look forward to your future content!
Thank you, Chris! I look forward to your future comments on future content!
You have a beautiful voice! And good content too :)
Congratulations, you do an excelent work. Please do the discounted cash flow video valuation.
I am eager to see it!
hey i like your content, would you mind sharing how you prepare spreadsheet in detail?
Great video!!! Thanks for share!!!
The reason some companies have year ends other than Dec 31, is mainly for tax purposes.
Thank you
Thank you
Thank you 🙏
You’re welcome
You’re welcome
You’re welcome
😊
Mrs sonia is legit and her method works like magic I keep on earning every single week with her new strategy
Wow I' m just shock someone mentioned expert Mrs Sonia I thought I'm the only one trading with her
She helped me recover what I lost trying to trade my self
Mrs sonia has changed my financial status for the best all thanks to my aunty who introduced her to me
Who's this professional everyone is talking about I always see her post on top comment on every RUclips video I watched
I think I'm interested how can I get in touch with Mrs Sonia
very informative and like the way you broke it down
Thank you, David! Glad you found the video informative
EBIT - OTHER INCOME = OPERATING PROFIT
That's also right.
Can you cover how to see if a stock is undervalued or overvalued please
Great video! An explanation of Dcf will be nice. Greetings from Argentina!
Greetings from New York City!
please make a video on how to analyze start up companies during pitch meetings... I am starting a VC
What is your background? How were you able to start a VC and raise money from investors?
@@InvestorCenter Project Management, money came from trust fund
@@johnwick860 email me: thevalueinvestorcenter@gmail.com , would love to connect and see how I can be helpful
Great Video and presentation to understand the concept, could you please make a video to calculate share price basis income projections. Thanks
Very useful video, Thanks for your hard work!
I like your channel and I also like to suggest The Interpretation of Financial Statements: The Classic 1937 Edition
Book by Benjamin Graham and Spencer Barrett Meredith
For the ones with the desire to learn beyond your great channel
Great 👍 👌 job, thanks a lot, how do you determine if a company is undervalue today? Maybe when you have time you can make a video about it.
Thanks again. 😊
I’m currently working on a video that explains that concept! Make sure to be subscribed to the channel to see when I post that video 😊
How are you able to make that much with Mr Sam Deymon....
It's by simply investing in the stöcks and Cryptó market with the help ocAQWf my advisor Sam Deymon.
I've read alot of textimonies about people grabbing multi-figures weekly and monthly as income in investments, even in this crazy days in the market baffles me.
Thank you, Griffin! The support means a ton! :)
Great video, thanks!
Glad you enjoyed it! Thanks for watching!
Can you do a video on how to value a stock using DCF?
What you need to do before making an investment in any stock is you need to study well into Income Statement like Mr. Ackman.
Please explain slow ur explanation is good
Please cover the blue stuff
Sry Sensei what is edibt u mentioned in balance sheet??✋🏼
Do you have a Twitter account ?
Great, great presentation, I really enjoyed the way you showed how to make a discounted cash flow model in a simple and objective way.
I'm studying valuation, but it's really hard to find practical content online, it would be awesome to see a whole series on how to make a proper valuation of a stock and how to read all the three key financial statements (Balance sheets, Cash flow and Income Statement) and how to use the financial ratios (PE, Price to book... ) with a detailed breakdown of each one.
Excellent series of videos. And, yes! Please do a DCF Valuation video. This would be very insightful.
I'm in complete awe at how I went from living an average life to making over 63k per month. It's amazing. The financial markets are full with opportunities, but I've learned a lot over the past few years to doubt that. The key is knowing where to focus. Well appreciated, Mr SAM DEYMON.
please how can I be part of this project with Deymon? I earnestly hope to build a strong financial future.
It's really profiting I started with 30k dollars trading with a professional broker my colleague recommended to me to Mr Sam Deymon, and now I earn more than my monthly paycheck.
Nearly half of millennial millionaires have at least 25% of their wealth in cryptocurrencies, according to the CNBC Millionaire Survey. In the coming years, the key to attracting the next generation of wealthy clients could be more about crypto than traditional stocks, bonds, private equity and hedge funds.
I'm interested to take part. Plz how may I be able to reach out to Mr Sam Deymon
Impressive. What's the secret? Short stocks?
Hi! Quick question, I am currently second year finance student in college. do you think that I should research on my own to learn stock market analysis? Or do you think that a fund or my college me everything I would need to know?
Thank you!
I would recommend studying Warren Buffett, Charlie Munger, Bill Ackman, and Mohnish Pabrai! My channel has a lot of good videos for you to start learning :)
Would love to see a video that covers the projections for DCF valuation which is ultimately used to determine if a stock is undervalued!! Very helpful
I would be very interested in viewing how you complete the DCF model for stock analysis. Where do you pull your data from.
Bloomberg for foundational framework & then pull data from other providers as well.
You’ll need to also make some solid assumptions and forecast. Be sure to look at how the market factors and bake them into ur assumptions.
Lol don't listen to the comments posted. This is like a crash course. There's a lot more information you can get from a companies financials. I would recommend taking an online class in accounting at a college. Its a couple thousand max. But you'll make it back fast.
thank you! you do a very great job simplifying the terminology & explaining...what about a "how to analyze" cash flow statement & balance sheet ?
I’m working on those videos now!
Discounted Cash Flow Evaluation would be so helpful if we were explained in detail. What an amazing channel. Just found this channel looking for how buffet calculates intrinsic value and what a library of information, I stumbled across.
Thank You! Investor Center, for delivering amazing Content and great VALUE!
Your videos like this are so much better than anything else on RUclips. Please make videos about how to analyze the cash flow statement and balance sheet please!
Thank you, I really appreciate the kind words!
Yes, please do make the videos you mentioned in the end of this one!
The different fiscal year end dates are caused by the company's adoption of four periods per year consisting of 13 weeks each. Notice each of the four periods end on a saturday. This method causes each of your quarterly reports to contain the same number of weeks (13) and each of your fiscal years to contain exactly 52 weeks. It makes accounting a little more complex but yields exact comparability. Sometimes an accountants nightmare, but worth it in the long run.
Interesting! Thank you, Lonnie
Thank you very much for your job! It`s super useful and very very interesting, can`t wair for your nex video about financial models!😀
Thank you for watching! Stay tuned for that video :)
Great video, I am very interested in how you set up the income statement for predicting the future performance of the company. I would love a video on how you set that up and as you mentioned deriving the cash flows from that. Thanks
Anything on cash flows? Investment generally tends to look at that metric more so than income
Yes! Check out my most recent video
For anyone reading later on- some companies don’t align to calendar year if they follow set 4-5 week periods for better comparison to other periods. This is common in manufacturing. I’m sure there are other reasons as well.
Your videos are wonderfully put together. I would greatly appreciate if you do a DCF model video in the future. You explain things with great ease and would be helpful to understand your view point on discounting cash flows. Thank you and keep up the great work!
Great video! I came across your channel today and started watching many of your videos while taking notes. I love how detailed you explain things still while trying to keep the overall video compact. I would be very interested to see a video from you on discounted cash flow valuation. Also, happy new year!
Oh wait, you have made a video on this topic before in September.
Happy new year! I will do a more detailed video on discounted cash flow valuation!
Thanks for the great content! Can you do a video about arriving at EBITDA and utilizing industry multiples?
I don't have time to watch through 11 minutes of it, so I just paused the statement, and took a look.
1- The sales are increasing, but not proportionately, so the outcome isn't very rosy; the percentage increase in sales is a decline. 2- The percentage rise in cost of sales has declines, which means that the product has some market recognition and demand, so the marketing expenses have fallen. Not much difference in the percentage of general expenses over the years. The operating income has risen in a percentage trend, so that is a plus. Depreciation hasn't changed substantially, so that is also good. The business has serviced debt, so that is good, but the cost of debt-serving has risen, so for that I'd need to take a look at the balance sheet.Percentage increase in income before taxes. The business looks good, but the growth in sales isn't very impressive.
This is a great explanation and one very important. Thank you so much. Could you please do one for the DCF?
The reason why some companies report its financial statements not on the year end it is because they report their FS when the company is on slack season which means movement of assets are very slow, in which the management believe it would capture or would be more representative of the company financial position
Very helpful! Thank you!
Let me explain why some companies like Apple will have an income statement end in Sep 25. For one, Apple is trying to be as exact as possible in comparing their activities. That means each income statement compares 365 days of activity, hence this is the reason why 2020 moved up 2 days (because of the leap year). The 2nd part, is because Apple is so large, it takes them a long time to put all their financials in order. Every statement needs a begin date and an end data date and will use the remaining time to compile the data, review, and approve by the end of year. Seems like Apple just needs a big head start in order to be able to report by end of calendar year.
Companies may have a different operating year vs a calendar year because of the difference in the actual rhythm and pacing of industry and corporate activities....
december may be the calendar year ending but if you have commercial property developers as customers, they might be awarding projects tight near the december as they wait on most of their calendar year results and as a company you might wait for results of projects, costs and billing until january.
Managment may finish annual plans by end of 1st month and do a kick off by start of second month, and performance evals and targetting setting might be finished by end of 2nd month.
so actual first month of implementation might be by 3rd month already...
For hospitality, summer might be peak business, so waiting for all the operating results to come in after might be better..
some companies that export to internationally like japan, may have to align their operating year more closely tk theirs..
it could be a lot of things for different industries, just remember jan to dec timeline is a bit arbitrarily selected..
I'm only halfway through the video and I just have to say your explanations are by far the best I have heard so far. I've been researching how to analyse companies for investment for months, it's been slow progress. Although I was familiar with most of the terms you were speaking about, my understanding of them just trippled thanks to your breakdown of each of them. Thankyou so much I will now prioritize this chanel first, amazing video 😄
What is a ready-to-go site that lists a company’s financial report? I’m trying to find one for the company I work for and only see old ones from past years and the most recent ones look nothing like this video, but numbers all over the place and not in a concise form. But an expense on page 7, and income on 3, etc.
Is there a site where financial statements can be seen from any company that has to make them public?
If the product sales is underperforming the sales if services shouldn't the company focus on trying to improve product sales growth?
If I were the CEO or whatever of a company I will always work to maintain the areas of business that are already doing well but my focus is always going to be in what is underperforming and how there needs to be improvement in that area as a CEO I focus on the areas of concern that need attention paid to them not areas that are already doing well and don't need to be focused on as much at the moment.
Where is operating margin at 8:38? Why did it disappear?
Also, Gross Margin is shown as an amount when zoomed out & not a percentage which was not explained.
Thanks, lot for your deep work. Can you tell me "For how long should I analyze these statements"? last 4 quarters or last 10 years
I am experienced Forex trader, profit loss 70/30, deaf, how to become hedge fund manager
Thank could you also do a review on Resource Company Statements!?
😮 min 9:27 ... yes pls. And write a comment here if it will be online
Is there a way to download the spreadsheets you used to analyze the stocks without joining your monthly patreon? Can I do a one time purchase?
Hi.. Good Video.. Can you make a video relating to "How to Analyze a Balance Sheet"
Hello. If Income statement data from QuickBooks and from tax return are different, is this normal?
Thanks for the vids… learning a lot!!
Thank you! Glad they are helpful :)
We do a different physical year most often to match the government’s physical year which does not end December either.
Thanks a lot.pls also cover some topic to estimate intrinsic value of the company.
because every country have different financial year end dates, and apple is registered somewhere else
Bill Ackman....the guy who foisted Ron Johnson on JC Penney.
I would be interested in learning about the discounted cash flow evaluation.
I’m working on that video!
Thanks 💃🏽
You are welcome 👌🏻
Please please please do something like this for a simple dcf there’s only one other video about a boat that I can find
Excellent content! Thank you for your wisdom, and soothing voice.
Where can I learn Financial modelling from basics to advanced on youtube ?
Can you please make a video on how to calculate the discounted cash flow evaluation to find intrinsic value?
Income Statement!
please cover DCF , will be more helpful. thanks.
Title: "How to Read and Analyze an Income Statement: A Guide Using Apple as an Example"
Summary:
In this informative video, the presenter emphasizes the importance of understanding and analyzing a company's income statement, a crucial skill for successful investing. The key takeaways from the video are as follows:
1. **Introduction to the Income Statement**: The income statement is one of three fundamental financial statements (alongside the balance sheet and statement of cash flows) used to report a company's financial performance over a specific period.
2. **Breakdown of Income Statement Elements**: The income statement breaks down a company's revenue (income from sales), expenses (costs of production, employees, rent, etc.), and ultimately, profit (revenue minus expenses).
3. **Practical Example Using Apple**: The presenter uses Apple's income statement as an example, highlighting how publicly traded companies are required to disclose their financial information for public access.
4. **Revenue Segmentation**: Companies often break down their revenue into segments or categories (e.g., products and services) to provide investors with a more detailed view of their performance.
5. **Gross Margin**: Gross margin is calculated by subtracting the cost of goods sold from revenue and dividing the result by revenue. A higher gross margin indicates stronger pricing power, and investors generally want to see this margin increasing over time.
6. **Operating Expenses**: Operating expenses include research and development (R&D) and selling, general, and administrative (SG&A) costs. Analyzing these expenses relative to total revenue can reveal cost management efficiency.
7. **Operating Profit and Margin**: Operating profit is the profit before taxes and interest. Operating margin (operating profit divided by revenue) reflects how much of each dollar of revenue is turned into profit. Higher operating margins are generally preferred.
8. **Other Income and Expenses**: These are income and expenses outside the scope of the company's normal operations.
9. **Earnings Before Taxes and Net Income**: Earnings before taxes (EBT) is the profit before tax expenses, and net income is the final profit figure.
10. **Financial Modeling**: The presenter briefly mentions creating financial models to project a company's future profitability based on different growth rates, gross margins, and operating expenses.
11. **Projections**: Projections can help investors estimate a company's future financial performance, but they should be based on reasonable assumptions.
The video provides a comprehensive overview of how to analyze an income statement, using Apple as an example. It also hints at the importance of financial modeling for evaluating investment opportunities.
Great explanation
Would love to see additional video on DCF valuation. Cheers
I'm bumping this up!
Wait. Based on what can you get these assuming numbers? Just by heart?
Gotta say, your videos and explanations and graphics and topic choices are way superior to everything else (in this genre) on RUclips.
Can you please make video about DCF. Thanks 🙏
Very helpful! Please cover DCF! New subscriber here!
if you could please do so (dcf) in a separate video I would really be interested
Excellent presentation. I understand this better now.
Yes, more on your spreadsheet please.
Please teach us more. This is awesome
I want a man to explain this
Many thanks to your professional analysis- Meshari from Saudi Arabia
This was great! Thank you for sharing this
Harris Donald Brown Angela Hernandez Mary
the year ends depending on when the business was started. lolz
Thanks for the great explanation. Can't wait for the ones of balance sheet and cash flow!
it will be great if you can do a discounted cash flow evaluation
Taylor Robert Miller Donald Garcia Donald
I wish you had used a magnifier. It so small font.
Ah, yes, "hedge" funds. Run...run fast!
Great video we need more contentl ike this and please do a video on projection
Would be awesome if you could do a "How to analyze a 10k". Great work, really
Thank you! I may make that video!