The CASH FLOW STATEMENT: all the basics in 9 minutes

Рет қаралды 60,893

Күн бұрын

Пікірлер: 56

@atoznum1 2 ай бұрын

AMAZING breakdown!!! The true sign of a good teacher is having the ability to teach any subject, no matter how complicated, in simple terms. Thank you!!

@BrianFeroldiYT 2 ай бұрын

@fendermon 6 ай бұрын

Terrific, amazing how many "investors" can't be bothered learning basics like this.

@BrianFeroldiYT 6 ай бұрын

Too many....

@nikkione9901 2 ай бұрын

Thanks , this video was more helpful than my entire accounting class.

@BrianFeroldiYT 2 ай бұрын

You're very welcome!

@sinnehd 5 ай бұрын

i love this dude, Giving an very good insight to a Good company.

@BrianFeroldiYT 5 ай бұрын

I appreciate that!

@gabech2789 6 ай бұрын

Big fan of your approach 👍 thanks for the breakdown 😃

@BrianFeroldiYT 6 ай бұрын

Glad it was helpful!

@shs- 2 ай бұрын

i love you brian feroldi

@BrianFeroldiYT 2 ай бұрын

lol. 😘

@illfunk1967 6 ай бұрын

Great tutorial .. thanks you

@BrianFeroldiYT 6 ай бұрын

Glad it was helpful!

@qp9vp 6 ай бұрын

The US should learn from countries such as Sweden. Reading a companies annual report and financials for a Swedish company vs. an American is like entering a completely different world. Swedish versions are informative, logical, and easy to understand for everyone. They give background and explain strategy and events.. An american 10k is like reading a nightmare created by an accountant.

@BrianFeroldiYT 6 ай бұрын

There's nuance for sure! Warren Buffett thinks that American accounting is superior to all other forms. Hard to disagree with him.

@vignesh1065 5 ай бұрын

@@BrianFeroldiYTCould you do a video on why you think the American way of reporting & the US GAAP are better than reporting in other countries & IFRS? Would make for an interesting video.

@user-fs8tl7ni1w 5 ай бұрын

Does Sweden do this purported financial statement simplification approach at the expense of dumbing down its financial statements? We don’t. That’s why accountants prepare them for professionals in the United States.

@musak.4068 3 ай бұрын

@@vignesh1065we’re the richest country on earth. That should be enough of an answer for you

@bharatichaudhari 4 ай бұрын

Superb analysis

@BrianFeroldiYT 4 ай бұрын

Glad it was helpful!

@aj9832 6 ай бұрын

Great video. I appreciate the insight. Can you make a video on the various financial ratios such as P/E, PEG, price to sales, free cash flow, discounted free cash flow etc.

@BrianFeroldiYT 6 ай бұрын

Great suggestion!

@fallout187 2 ай бұрын

Brian, Just discovered your channel and love how you explain everything. Just bought your accounting explained visually and have been very satisfied. I did have a requests if possible. I understand that income statements, cash flow statements, and balance sheets are all meant for evaluating a business but I’d like to use these financial statements for my personal finance. Is it possible to modify the categories within each financial statement to make this fit? Outside of W2 income I have stocks and covered calls/cash secured puts options that I trade weekly. I’ve been reinvesting all of the profits when the options expire. I think the financial statements will help me monitor my finances better than a basic personal budget tracker which I don’t think captures everything like this.

@BrianFeroldiYT 2 ай бұрын

Sure, modify away! Or are you asking if there is a spreadsheet you can download with them? If so email brian@longtermmindset.co

@savvytrader 5 ай бұрын

Fantastic keep sharing

@BrianFeroldiYT 5 ай бұрын

Will do!

@mohdjibly6184 5 ай бұрын

Amazing...thanks Brian

@BrianFeroldiYT 5 ай бұрын

Glad you enjoyed it

@joshirwin8882 14 күн бұрын

Were tge drops unmanageable because if the market rates or were they a probable error correction findable?

@juanacevedo5738 6 ай бұрын

Spectacular

@BrianFeroldiYT 6 ай бұрын

Glad it was useful!

@joshirwin8882 14 күн бұрын

Where do the drops stem from to create a regenerative porfit plan to execute

@samuelmandel4537 6 ай бұрын

Thank you!

@BrianFeroldiYT 6 ай бұрын

You're welcome!

@mikek6478 5 ай бұрын

Insightful video! You mentioned that stock compensation issued to its employees needs to be reasonable (not a large number) compared to net income. What is reasonable (e.g., less than 30%, 20%, 10% of net income)? Thanks!

@BrianFeroldiYT 5 ай бұрын

I think that 10% of net income is a good target, but it depends on the stage of the company

@mikek6478 5 ай бұрын

@@BrianFeroldiYT Thanks! A company with 10% of net income is very hard to find and especially for small growth companies, as they either don't have a net income or they do but incentize employees with stocks which exceeds the 10%. Thanks again!

@shreyasjuloori3147 3 ай бұрын

3:41 wouldnt all of them added become $9000 for changes in cash

@milk9720 3 ай бұрын

why don't you take out the cash paid for acquisitions to get free cash flow? Wouldn't this be cash taken away from shareholders?

@BrianFeroldiYT 3 ай бұрын

Cash paid for acquisitions is something that they DO with the free cash flow. They could also buy backstock and pay dividends. But none of those activities impact how much free casual they generate.

@milk9720 3 ай бұрын

@@BrianFeroldiYT gotcha! Thanks!

@MMOI96 5 ай бұрын

Didn't understood from 3:30 to 3:52 . Kindly help😢

@sllgrecco 5 ай бұрын

If you take the cash the company generates in his operations, add the cash it used in his investing and financial activities (in this case negative numbers), you get what has changed in cash for the company in this period (5000 - 2000 - 2000= 1000). The company had 1000 in cash at the beginning, now has 2000 (initial 1000 plus 1000 it generated).

@Ko-gl4nhfv 5 ай бұрын

Excellent

@BrianFeroldiYT 5 ай бұрын

Thank you so much 😀

@partnermammoth2562 5 ай бұрын

Can someone explain the adding the non-cash charges I still dont understand why we are adding it back. Also by free cash being used to reward shareholders does he just mean dividens?

@BrianFeroldiYT 5 ай бұрын

There are "non-cash" charges that are included on the income statement like depreciation & amortization. However, since they are "non-cash", the money didn't leave the bank account. Since cash didn't change hands, we have to account for that on the cash flow statmement. Let's say a company has $1,000 in depreciation. That $1,000 charge is INCLUDED on the company's income statement, which reduces Net Income by $1,000. However, since that $1,000 didn't leave the company's bank account during the period, it needs to be added back on the cash flow statements. Hope that helps!

@partnermammoth2562 5 ай бұрын

@@BrianFeroldiYT Thank you for replying that was very helpful. I think I basically get it now. But could you explain what exactly amortization is?

@shafis5096 Ай бұрын

@@partnermammoth2562 Depreciation: When you buy a car and use it. At the end of each month you take down the amount that is standard like $300 or $500 depending on the number of years you want to depreciate it in. So basically it is for a physical asset. Amortization: Similarly for some assets which are not physical in nature such as a loan, mortgage etc. you amortize them monthly over the number of years you have taken for. Hope I am clear enough.