3 Liquidity Ratios Every Financial Analyst And Investor MUST Know!

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  • Опубликовано: 24 дек 2024

Комментарии • 88

  • @alexdavidson9204
    @alexdavidson9204 4 года назад +17

    That is probably the best & most succinct explanation of these 3 ratios. Look forward to watching more of your videos.

  • @pasufi
    @pasufi Год назад +1

    great video! I was however confused by "credit sales" - where can I find it in the financial statements?

    • @PJMcInerney
      @PJMcInerney 10 месяцев назад +1

      Income Statement

  • @550manu
    @550manu 2 года назад

    very nicely explained. thanks and regards

  • @yinyin7614
    @yinyin7614 3 года назад +1

    Super helpful video.

  • @paulmartin3296
    @paulmartin3296 4 года назад +2

    Its a good explanation of the ratios, however saying quick ratio of 0.8 is poor is a little miss leading as this ratio needs to be assessed against industry averages to really understand if this is poor or not.

    • @TheFinancialController
      @TheFinancialController  4 года назад +2

      It's a good point, although I'll say that when a company has less liquid assets than it's current obligations, it's rarely a good situation.

  • @AhMauy
    @AhMauy 10 месяцев назад

    Thank you so much for sharing your knowledge with us. Can you help me understand this: why should a company vehicle a “fixed asset” and not “other asset: equipment “ ?

  • @ochanbrian1361
    @ochanbrian1361 Год назад

    Well explained. keep this up

  • @nitikaverma1810
    @nitikaverma1810 Год назад

    very well explained... and really amazing content

  • @jessiesi1412
    @jessiesi1412 3 года назад +2

    Very good explanations! I learned these ratios. I have a question about the AR and Credit Sales. What is difference between these two terms and where could we find credit sales in the financial statement? Please advice! Thanks!

    • @TheFinancialController
      @TheFinancialController  3 года назад

      Good question! pls google the question "what's the difference between ..&.." and also what is "Credit Sales", plenty of articles on this online.

  • @1985argiris
    @1985argiris Год назад

    Question: if we reserved for Bad Debt and obsolescence inventory, are these amounts being deducted from A/R and Inventory respectively when we calculate the ratios?

  • @gw8755
    @gw8755 4 года назад +3

    Great explanation. Could you please make a video about the interpretation of the ratio calculations, when we compare them to the previous year or compare to other company's ratio. Why is is Better or Worst? Thank you!

  • @user-vh5kn
    @user-vh5kn Год назад

    Any video on trend analysis?

  • @michellewright99
    @michellewright99 3 года назад

    This was very insightful as it gives me new ideas on how to look at my personal financial health in addition to understanding why businesses make some of the decisions they do surrounding invoicing, collections and inventory.

  • @rachedecheikh8276
    @rachedecheikh8276 2 года назад

    Thank you for this useful course.
    Do you have some financial diagnostics report ? I want to improve my vocabulary ( how I write a repot ).
    Thanks you in advance.

  • @cheikhwely
    @cheikhwely 3 года назад +1

    Excellent content and easily explained concepts. Your students or clients are not likely to lack clarity in determining the health of their finances. Thank you and keep up the good work :)

  • @helena.5760
    @helena.5760 3 года назад +1

    I really like this, it refreshes my memory

  • @verbesta1
    @verbesta1 3 года назад +1

    Hi Bill, I rewatched the video three times, I wondered why I can't find the credit sales number. Did you just assume it a number $10,000 here only for calculation practice? Thanks.

    • @nokafisher2771
      @nokafisher2771 3 года назад +1

      lol I knew someone was going to ask this question so scrolled down and yes found the question. 😂

  • @kodirjonrakhimov7657
    @kodirjonrakhimov7657 Год назад

    Can you explain please, where $10k comes from in the formula of DSO as Credit sales ?

  • @jansyavi
    @jansyavi 3 года назад

    Super uitleg, your great, but where does ths 10, 000 credit sales come from in the Balance Sheet?

  • @shreenivasdushi5299
    @shreenivasdushi5299 4 года назад

    great man...sounds good....keep going and rocking...

  • @chirayugarg7207
    @chirayugarg7207 4 года назад +1

    Sir in case of a banking company what should be the ideal quick ratio?
    2)Can we use DSO to calculate bank's ability to convert npa's into cash or recover them?
    Thanks for the video sir.

    • @TheFinancialController
      @TheFinancialController  4 года назад

      Hey chirayu I am not really an expert on banks, so not sure there.

    • @paulmartin3296
      @paulmartin3296 4 года назад +1

      Hi Chirayu, You need to review a banks balance sheet differently to that of a companies balance sheet, there is alot more going on in terms of understanding the solvency of a ban, it is a subject all of its own.

    • @chirayugarg7207
      @chirayugarg7207 4 года назад

      @@paulmartin3296 thanks for the reply

  • @MissD0829
    @MissD0829 2 года назад

    Hi, great video. I'm an aspiring financial analyst and love your insightful videos. Do you offer mentorship support?

  • @a.bismail6492
    @a.bismail6492 Год назад

    I may be incorrect. but isn't quick ratio Current assets/Liabilities and current ratio current assets-Inventory/Liabilities?

  • @sakshi23ca
    @sakshi23ca 3 года назад

    Thank you 😊

  • @cinthiasabillon144
    @cinthiasabillon144 3 года назад

    Thanks for making these videos. They are very well explained!

  • @ziyadalshaban775
    @ziyadalshaban775 3 года назад

    That was amazing, just one question where i can find credit sales in financial sheet

  • @naveenkumarsharma9445
    @naveenkumarsharma9445 3 года назад +1

    Hi Bill, Thanks for your videos. You are great explainer. Could you please make a videos on some important terms with examples for understanding like used in this example...Def. revenue,AR,AP,Equity etc.

  • @malamofficial7558
    @malamofficial7558 Год назад

    Which data of credit sale you take from?

  • @Lee3_mach
    @Lee3_mach 3 года назад

    I like your videos... always simple and easy to understand, Can they ask this kind of questions on an assessment for a junior Financial controller? I have an assessment this week for a junior financial controller and I don't know what to expect

  • @muralibura362
    @muralibura362 2 года назад

    What is the indication for quick ratio

  • @meytithveasna339
    @meytithveasna339 3 года назад

    Hi Bill what should I prepare for an interview for finance analyst? Please give some tips because I prepare an interview as a finance analyst

  • @HepCatJack
    @HepCatJack 3 года назад

    What about Debt to Equity ratio and Debt Ratio ?

  • @malamofficial7558
    @malamofficial7558 Год назад

    Deferred revenue is unearned income?

  • @princesspalqisa2423
    @princesspalqisa2423 3 года назад +1

    I am from Somalia I study Bank and finance

  • @ScriptedOcean
    @ScriptedOcean 4 года назад

    Super Helpful Thank you!

  • @GPD989
    @GPD989 10 месяцев назад

    How to find credit sales which you have taken 10000 in this case ?

  • @jzhuo5145
    @jzhuo5145 4 года назад

    very clear and good explanation.t hank u

  • @sarahn3935
    @sarahn3935 3 года назад

    Perfect and easy explanation. Thank you 🙏🏻

  • @MsFender32
    @MsFender32 4 года назад

    Excellent and thorough explanation. Thank you, sir!

  • @dejib.3930
    @dejib.3930 Год назад

    Beautiful.

  • @aneezasonisoni9866
    @aneezasonisoni9866 3 года назад

    I am learing alot from your videos. Excellent explaination. 👍

  • @blu4174
    @blu4174 3 года назад

    Good explanation sir I am from India
    I want to know what all questions are asked for the role of financial analyst as a fresher in the interview

  • @rajamanisubramaniyan9114
    @rajamanisubramaniyan9114 4 года назад

    Hi Bill Hanna
    Greetings !!!
    Hope you and your family are safe !!!
    Good Video to understand in a very simple manner. Requesting you to go on more video on Finance Analyst.
    Thanks !!!
    Hope you will have a good day.

  • @thatswhatshesaidbro
    @thatswhatshesaidbro 4 года назад

    Great video thanks another good one to add is fcf/net debt if a business can not pay its debt within 5 years of fcf move on!

    • @TheFinancialController
      @TheFinancialController  4 года назад

      Thanks Andre, always appreciate your input!

    • @thatswhatshesaidbro
      @thatswhatshesaidbro 4 года назад

      The Financial Controller what would you say are the 3 liquidity ratios specifically for banks ?

    • @TheFinancialController
      @TheFinancialController  4 года назад

      Hey Andre, am not really an expert on banking, so not so sure.

  • @marynayakovenko5539
    @marynayakovenko5539 4 года назад

    Hi, Bill! I'd like to thank you for the amazing work you're doing! Could u explain the difference between A/R and credit sales? Is it just the portion of Sales that used to be A/R? Thanks a lot.

    • @TheFinancialController
      @TheFinancialController  4 года назад +1

      Thanks. Credit sales is a certain portion or sales/revenue that is “on credit” meaning no cash collected on the spot. In essence most company’s sales are credit sales, unless we are talking about a restaurant

  • @ibrahimbaimbakoroma60
    @ibrahimbaimbakoroma60 2 года назад

    I have an assignment: what are the financial accounting tools used to monitor liquidity. Can someone pls list them for me?

  • @drsshetty12
    @drsshetty12 Год назад

    I wanna learn from you 🎉🙏

  • @kamwaniamit
    @kamwaniamit 3 года назад

    If AR is $20000, how come Credit Sales be $10000? Also how to Credit Days to be taken incase multiple options of 30, 45, 60 & 90 days?

    • @TheFinancialController
      @TheFinancialController  3 года назад

      credit sales refers to sales for which the customer will pay in the future. Some sales are made for cash in this case.

  • @jinchen1734
    @jinchen1734 4 года назад

    Excellent explanation.👍 Keep up the good work! 💪

  • @sunnyb831
    @sunnyb831 2 года назад

    How can A/R be 20 k when your credit sales is only 10 k ?

    • @TheFinancialController
      @TheFinancialController  2 года назад +1

      Slow paying customers.

    • @sunnyb831
      @sunnyb831 2 года назад

      @@TheFinancialController Thanks.
      From where do we collect sales credit.
      Does it come from Trial Balance

  • @jeycee6807
    @jeycee6807 3 года назад

    The most handsome CPA 😍❤️