Happy to help! Videos on related topics can be found in this playlist: kzbin.info/www/bejne/hF7Pf2iuhLd8rcU&pp=gAQBiAQB
@Bigoski120 сағат бұрын
Performing a financial analysis case study for my senior class right now. A piece I need to find is invested capital and then ROIC I was having trouble understanding what Invested Capital meant. This video just helped me finish this semester! Thank you so much!
@TheFinanceStoryteller9 сағат бұрын
Nice to hear that! Please share the video with your classmates.
@K62ĐỗTrầnGiaHânКүн бұрын
thank you so much
@TheFinanceStoryteller9 сағат бұрын
You're welcome! Related video on vertical analysis can be found here: kzbin.info/www/bejne/i6PIkJuEjdWGjtk
@arturlima3210Күн бұрын
Why don't banks and investment firms just calculate the monthly returns of a nominal yearly interest rate of, let's say, 10% as 1.1^(1/12), which would actually yield the exact value that amounts to the nominal rate? Why introduce that transparency problem in the first place by making the approximation of dividing the nominal rate by 12, if calculating the 12th root would make it so much simpler, direct, and realistic?
@TheFinanceStoryteller9 сағат бұрын
Either their IT systems are so old that they can't handle the change, and/or they will gladly make some money "behind your back".
@l0567Күн бұрын
Thank you so much 🙌🏻
@TheFinanceStoryteller9 сағат бұрын
Any time! Happy to help. Here's a recent case study I did that can help you interpret DuPont ratios: kzbin.info/www/bejne/d2mzoaWYrZeoh5o
@valentynnevidemskyi88664 күн бұрын
nice, thank you sir
@TheFinanceStoryteller8 сағат бұрын
Happy to help!
@hunterlawson2555 күн бұрын
I am still struggling I need help with the debits and credits, how do you know which to put in each account
@TheFinanceStoryteller8 сағат бұрын
Have a look at the videos in my Accounting 101 playlist, which includes several run-throughs of the logic of debits and credits: kzbin.info/www/bejne/mGqWfHWjmL2UpKs&pp=gAQBiAQB
@peeterzpee5 күн бұрын
Hi, why is the relationship between NWC and Cash (as part of current assets) not 0? pay suppliere/hold inventory equally decrease assets and liabilities or simply exchange assets hold in cash with inventory. This only works with fresh equity or long term debt cash?. thanks
@TheFinanceStoryteller8 сағат бұрын
The practical definition of working capital, used in everyday business life, that focuses on those items that are (in real life) often the largest in amount: accounts receivable, plus inventory, minus accounts payable. Therefore, if working capital goes up, cash goes down. And if working capital goes down, cash goes up. If a retailer for example holds 10 days worth of inventory, all the customers pay cash so days sales outstanding is zero, and payment terms to suppliers are 60 days, then its cash conversion cycle is minus 50 days. In short: getting paid before you have to pay others. A great way to run your business. In terms of journal entries: Debit inventory credit accounts payable (for receipt of goods) Debit cash credit inventory (when the consumer buys items and pays for it in cash rather than on account)
@OswaldChisala6 күн бұрын
As a software engineer (I.e. no finance background), this was my first video on leverage and I only watched it once, yet it completely made sense. The finance storyteller really knows how to teach, excellent video! 🔥👏🏽
@TheFinanceStoryteller8 сағат бұрын
Wonderful to hear that. Glad it was helpful!
@raggaman30196 күн бұрын
❤
@nellymwai6 күн бұрын
thanks soo much for that
@TheFinanceStoryteller6 күн бұрын
Happy to help! More videos on the cash flow statement (examples, discussions of specific sections) in this playlist: kzbin.info/www/bejne/nZ2WgH-qer1lhq8&pp=gAQBiAQB
@reubenharaeb32687 күн бұрын
Operation save the semester 😭💔
@TheFinanceStoryteller7 күн бұрын
Go for it! Make the most of it. Related videos on payback method, WACC, etcetera are in this playlist: kzbin.info/www/bejne/hF7Pf2iuhLd8rcU&pp=gAQBiAQB Hope this helps!!!
@billpenning69508 күн бұрын
Great video!!!
@TheFinanceStoryteller8 күн бұрын
Thank you!!
@billpenning69508 күн бұрын
Good vid!!!
@TheFinanceStoryteller8 күн бұрын
Glad you enjoyed it!
@karmaloday61418 күн бұрын
which company is best from your point of view?
@TheFinanceStoryteller8 күн бұрын
Both A and B have their strengths, but I would probably go for company A due to higher gross margins and larger R&D spend in the income statement, as well as a more robust balance sheet due to high equity as percentage of total balance sheet.
@marcio17458 күн бұрын
This is the best explanation in the entire universe. Thank you, sir
@TheFinanceStoryteller8 күн бұрын
Wonderful to hear that. Thank you for the kind words. Please share with friends and colleagues!
@JeffrenRoqueFuentes9 күн бұрын
THANKS
@TheFinanceStoryteller8 күн бұрын
You're welcome!
@LuxxomannLU10 күн бұрын
Hi Phillip, are you Dutch? (From your acccent)
@TheFinanceStoryteller8 күн бұрын
Yes indeed!!! 😎
@fiyinfoluwaawopetu155911 күн бұрын
I have watched this over 100 times especially as a Network Marketer 🎉
@원도훈-m4w13 күн бұрын
Super helpful thank you!
@TheFinanceStoryteller13 күн бұрын
So glad! Happy to help!!!
@mustakes14 күн бұрын
⭐️⭐️⭐️⭐️⭐️⭐️
@TheFinanceStoryteller13 күн бұрын
Thank you!!!
@sandgoblininasanddune139716 күн бұрын
If i was given the beginning balance of cash and asked to make a t account of cash do i include the beggining capital in the debit side or do i voide the beginning capital and just include the transactions
@TheFinanceStoryteller15 күн бұрын
Yes, include the beginning balance on the left (debit), then record the transactions, and then plug the ending balance on the right (credit) to close out.
@ZMM-vc3sh17 күн бұрын
Thank you
@TheFinanceStoryteller17 күн бұрын
You're welcome
@cindypope423817 күн бұрын
All bills are prepaid with our credit since we are the faith and credit of the US govt. There is no lawful money since 1933. Usc 18 sec. 8.
@AnilkumarGulia17 күн бұрын
Sir u are great thanks for the video
@TheFinanceStoryteller17 күн бұрын
Most welcome
@suoo-917 күн бұрын
THIS WAS EASY TO UNDERSTAND!! THANK YOU!!!
@TheFinanceStoryteller15 күн бұрын
Happy to help! I made some follow-up videos talking about straight-line depreciation kzbin.info/www/bejne/oZPThKeJiLitiq8 and double declining balance depreciation kzbin.info/www/bejne/bqenpWaQe56bhaM that could also be useful for you.
@suoo-98 күн бұрын
@TheFinanceStoryteller Thanks! I will definitely watch it. I have an exam in two days 😭 can't fail.
@KonduktorPonimaet18 күн бұрын
Man, your channel is the coolest, i thought i will never understand finance, but with your explanation all is clear as day. Haven't found a single from you which i wouldn't understand. Cheers!)
@TheFinanceStoryteller15 күн бұрын
So wonderful to hear that!!!! Please spread the word to friends and colleagues.
@cncha677120 күн бұрын
what about future cash outflows? For example, a future cash outflow at T=3? Is the future cash outflow also discounted by the same discount rate to get the present value of the cash outflow?
@TheFinanceStoryteller20 күн бұрын
Correct!
@obeychrist077720 күн бұрын
I find it easier to calculate in excel but this was a good explanation too!
@TheFinanceStoryteller20 күн бұрын
Glad it was helpful!
@MarkBuckis21 күн бұрын
Great tutorial video, thanks.
@TheFinanceStoryteller20 күн бұрын
Glad you enjoyed it! I see these charts all the time in corporate presentations, it's nice to know how to make them.
@faisaldossary666821 күн бұрын
Second time watching this video Thanks
@TheFinanceStoryteller20 күн бұрын
Most welcome 😊 Have a look at the sequel as well, where I go into more specifics on the Excel model: kzbin.info/www/bejne/ipfTiYN_gbVng6c
@IroquoisPliskin678922 күн бұрын
Conment for the algorithm.
@TheFinanceStoryteller22 күн бұрын
I read them as well! 😉
@ChubbTime4422 күн бұрын
How did you get 35 after the cash flows were determined? You said sum across?
@TheFinanceStoryteller22 күн бұрын
35 came from calculating the present value of the future cash flows of 333+278+231+193 which is equal to 1035 and deducting the initial investment of 1000 from this, and you got this 35.
@ChubbTime4419 күн бұрын
@@TheFinanceStorytellerTHANK YOU! Staring at my textbook for 3 days before I found this video
@Tothefutureand23 күн бұрын
To mine data you can look for momentum of what ratios in growths stock changed and then look for similar patterns in other stocks to find growing stock opportunities.
@TheFinanceStoryteller22 күн бұрын
Historical results are no guarantee for future performance.... new and unheard of patterns can emerge, so be careful with that.
@Tothefutureand19 күн бұрын
@ thx
@camvilliers223024 күн бұрын
Sir, u have mentioned account receivable as 200 then it's adjusted.. what if account receivable is 300.. The excess 100 rs where it will be adjusted... pls response ❤
@TheFinanceStoryteller22 күн бұрын
The 200 in accounts receivable comes into existence when the invoicing occurs for the product delivered. 200 in the income statement for revenue, 200 on the balance sheet for the receivable. Hopefully, the customer will pay this invoice subsequently which will make the accounts receivable balance go to zero, and cash increase by 200. I am not sure what you mean with "adjusted accounts receivable". This balance does not jump up or down by itself. If the company generates additional sales, then the accounts receivable balance can go up. If the customer is unable or unwilling to pay, then the accounts receivable balance might have to be taken down. See my video on bad debt accounting kzbin.info/www/bejne/p2i6maWVdpmXqKc
@AmberCooley-wb1yx24 күн бұрын
tolls
@TheFinanceStoryteller22 күн бұрын
Good one!
@halemuhalemu24 күн бұрын
❤❤❤
@CarterAlessi24 күн бұрын
thanks for wasting my time
@TheFinanceStoryteller22 күн бұрын
Sorry to hear that. Can you be more specific on what you didn't like? Previous comments from others as well as like/dislike ratio are quite favorable, so would be interested to hear your viewpoint.
@larahporter812325 күн бұрын
As an experience accountant I can say you can learn to do accounting just by watching YT videos.
@TheFinanceStoryteller22 күн бұрын
Certainly some of it! The other important part is getting the mileage in doing the actual entries, and producing the accounts. Some playlist that you might find helpful: Accounting 101 kzbin.info/aero/PLKbmcnUUQMlnWPLx9IeS-cYec2r7GzJ3S Intermediate accounting kzbin.info/aero/PLKbmcnUUQMlmLg2og4U9QbkfyBPkbgs9C Have a browse through them, to see if any other videos appeal to you!
@Onlineclass.10125 күн бұрын
thanks
@nanachan589625 күн бұрын
You can change it as DEALER.
@samielhag109126 күн бұрын
Thank you for simple and clear illustration of VUCA , interesting what you presented
@TheFinanceStoryteller20 күн бұрын
An important concept, in a world that time and again shows that life can be more VUCA than we ever expected!
@jonathanlindsey762327 күн бұрын
To efficiently run an economy, as defined by webster's dictionary, you should be able to calculate how allowing businesses to run on a model calling for no need for working capital isn't the preferred option to find debt forgiveness.
@barackobama371927 күн бұрын
this is always so hard for me to understand but you helped me understand it so thank you
@TheFinanceStoryteller26 күн бұрын
Happy to help! I think you might also like my video called "Adjusting entries", which gives some more accrual examples: kzbin.info/www/bejne/a2imhIdslLenjc0
@barackobama371926 күн бұрын
@ thank you sir
@CenfJ28 күн бұрын
Great work man ❤
@TheFinanceStoryteller26 күн бұрын
Thank you so much 😀
@caitlin852228 күн бұрын
where do you get the 20% annual return from? I'm confused. What is this?
@TheFinanceStoryteller26 күн бұрын
Hi! The 20% return is just for illustration purposes. You can do the calculations with 10% or 5% as well. I just need a discount factor in order to explain the concepts.
@edot206828 күн бұрын
My Excel doesn't give the option of "Set as total". Any assistance?
@TheFinanceStoryteller26 күн бұрын
I was using Excel 2019 desktop version when making this video. Not sure older versions will work the same.
@stinhuffine4422Ай бұрын
I cancel my paid financial course subscription just because your channel has everything but explains better
@TheFinanceStoryteller29 күн бұрын
Thanks for the compliment! If you want to support The Finance Storyteller channel instead, please consider a membership or donation: kzbin.info/door/QQJnyU8fALcOqqpyyIN4sgjoin
@OnahVincent-i8vАй бұрын
Thanks
@min3endoАй бұрын
Beautiful course here. I have one question why is it necessary that liabilities=assets. If a company with a bad management had 10k$ in long term debt. This money was then debited on expenses and not invested in assets. At the end of the year the expense account was closed. In the new year we still have 10k$ in long term debt but nothing in the assets category. Now they are not equal anymore. What should we do in this case?
@TheFinanceStoryteller29 күн бұрын
Hi! The accounting equation kzbin.info/www/bejne/hYrUnWqPbrOheMk states that at any point in time assets equal liabilities plus equity. The example you are providing starts with $10K in cash (assets) and $10K in debt. If all the cash is "wasted" in expenses, and no revenue or other income is generated in the same period, then the company runs a loss of $10K in its profit and loss statement for the year. When you close out the year, this loss gets transferred to "accumulated deficit" (the opposite of retained earnings), which is in the equity section of the balance sheet. Ending situation: assets $0 equal liabilities $10K plus equity of ($10K). P.S. putting numbers between brackets, like ($10K), is a finance person's way of saying negative, or minus. Hope this helps!