3 Liquidity Ratios Every Financial Analyst And Investor MUST Know!

[@alexdavidson9204]

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

[@TheFinancialController]

Thanks Alex!

[@cheikhwely]

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 :)

[@michellewright99]

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.

[@TheFinancialController]

Thanks Michelle!

[@helena.5760]

I really like this, it refreshes my memory

[@TheFinancialController]

Thanks Helen:)

[@naveenkumarsharma9445]

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.

[@TheFinancialController]

Hi sure

[@paulmartin3296]

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]

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.

[@nitikaverma1810]

very well explained... and really amazing content

[@TheFinancialController]

Glad you think so!

[@gw8755]

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!

[@TheFinancialController]

Sure will do

[@gw8755]

@@TheFinancialController Thank you. Looking forward.

[@AhMauy]

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 “ ?

[@aneezasonisoni9866]

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

[@TheFinancialController]

Thanks 🙏

[@jessiesi1412]

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]

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

[@sarahn3935]

Perfect and easy explanation. Thank you 🙏🏻

[@cinthiasabillon144]

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

[@TheFinancialController]

Appreciate it Cinthia!

[@rajamanisubramaniyan9114]

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.

[@TheFinancialController]

Thanks 🙏 will do

[@MsFender32]

Excellent and thorough explanation. Thank you, sir!

[@TheFinancialController]

Thanks oleg

[@yinyin7614]

Super helpful video.

[@kibimacheru6228]

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

[@TheFinancialController]

Yes possible. Best of luck

[@kibimacheru6228]

@@TheFinancialController Thank you so much

[@550manu]

very nicely explained. thanks and regards

[@TheFinancialController]

Thanks brother

[@pasufi]

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

[@PJMcInerney]

Income Statement

[@jinchen1734]

Excellent explanation.👍 Keep up the good work! 💪

[@TheFinancialController]

Thanks Jin!

[@rachedecheikh8276]

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.

[@chirayugarg7207]

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]

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

[@paulmartin3296]

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]

@@paulmartin3296 thanks for the reply

[@1985argiris]

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?

[@MissD0829]

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

[@TheFinancialController]

Hi Doris, not at the moment, but maybe in the future.

[@thatswhatshesaidbro]

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]

Thanks Andre, always appreciate your input!

[@thatswhatshesaidbro]

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

[@TheFinancialController]

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

[@shreenivasdushi5299]

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

[@TheFinancialController]

Thank you 🙏

[@dejib.3930]

Beautiful.

[@verbesta1]

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]

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

[@jzhuo5145]

very clear and good explanation.t hank u

[@TheFinancialController]

Glad it was helpful!

[@kodirjonrakhimov7657]

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

[@marynayakovenko5539]

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]

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

[@jansyavi]

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

[@ochanbrian1361]

Well explained. keep this up

[@user-vh5kn]

Any video on trend analysis?

[@a.bismail6492]

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

[@sakshi23ca]

Thank you 😊

[@ScriptedOcean]

Super Helpful Thank you!

[@TheFinancialController]

Thank you!

[@blu4174]

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

[@TheFinancialController]

ok more videos to follow on that swathi

[@princesspalqisa2423]

I am from Somalia I study Bank and finance

[@ziyadalshaban775]

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

[@TheFinancialController]

All revenue/sales in this example are Credit Sales

[@meytithveasna339]

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

[@TheFinancialController]

Watch my interview and analysis playlists

[@malamofficial7558]

Which data of credit sale you take from?

[@drsshetty12]

I wanna learn from you 🎉🙏

[@GPD989]

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

[@muralibura362]

What is the indication for quick ratio

[@malamofficial7558]

Deferred revenue is unearned income?

[@HepCatJack]

What about Debt to Equity ratio and Debt Ratio ?

[@ibrahimbaimbakoroma60]

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

[@kamwaniamit]

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]

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

[@sunnyb831]

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

[@TheFinancialController]

Slow paying customers.

[@sunnyb831]

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

[@jeycee6807]

The most handsome CPA 😍❤️

[@TheFinancialController]

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