FINANCIAL RATIOS: How to Analyze Financial Statements

[@amandakarl7223]

I hope you know you are basically my accounting 101 professor. My TESU professor just links all your videos in our class materials and it's up to your videos and the book to learn everything. You are doing amazing work and helping me so much!

[@gingerscapturethemomentpho4546]

mine too!

[@Missginalove]

My professors just through a book at us 🙄

[@albertc2390]

​@@Missginalovethrew

[@MeghanSandbeck]

Your videos are the reason I am passing my Introduction to Financial Accounting course. I have realized that I learn best by understanding the big picture, and THEN learning the steps which is not the way my textbooks are written, but it is the way you explain the concepts. You're the hero all of us accounting students didn't know we needed. Thank you!

[@UmarA2203]

got my Intro to fin. accounting final exam on Monday

[@ibrahimalbaz2595]

I swear, these kind of videos that make me believe that university education is useless, whenever there is Monopoly in any field, the quality always go down, thats the thing about internet, the professor at the university, cannot get fired nor someone else takes his place, unlike in the internet, if you wanna make money, you gotta provide something special.

[@AccountingStuff]

Glad to hear you found this one useful!

[@danishahmed4005]

@Ibrahim. Agreed video is excellent. But our teachers are also excellent. The video came through also by learning only

[@zachz699]

It’s not useless if you want to do anything that requires a degree lol. Even warehouse manager jobs around me want a bachelors

[@GeeGeebaby]

Truth. University is more like a platform for socializing, networking and providing with a studying venue nowadays.

[@zachz699]

@@GeeGeebaby I sure hope the civil engineers that are in charge of the massive highway widening project in my city didn't see it that way

[@TuneActive]

Words cannot express how grateful I am for your course, thank you James

[@sohailmallick009]

This is the most comprehensive, complete and concise video available on financial ratios.....it is my go-to video any time I want to revise my concepts.

[@AccountingStuff]

Thanks, glad you enjoyed it!

[@abasi-enebassey1108]

I totally agree. Thank you so much @AccountingStuff

[@angelnicoleorias8199]

thank you so much for this video! i have to memorize around 40 ratios for our midterm exams, and this video helped me tick 26 of them! i love how you grouped the ratios, which made memorizing the formulas a loooot easier, explained what these formulas stand for, their relevance. so happy i came by this vid. it helped me a lot! i've also been sending my classmates this video!

[@AccountingStuff]

No worries, all the best in your midterms!

[@monah2030]

James! You won’t believe how happy I am to see you ! I had a terrible day and you changed my mood a lot ! Please, please visit us more often! You are amazing 😀 excellent lessons as always.

[@AccountingStuff]

Thanks Mona, sorry to hear you had a bad day. All the best!

[@bronnies007]

2 years off as an accountant and your videos help me refresh my memory, thank you so much james

[@montanaHE]

Your video taught me more in 25 min, than my high school did in 4 years.

[@Diby-ek7eo]

Heyyy i found my best accounting youtuber live for the first time 🎉

[@AccountingStuff]

Thanks, great to hear you're enjoying the channel :)

[@Diby-ek7eo]

@@AccountingStuff Always. I've been watching your videos by downloading them they have been helping a lot. 🫡

[@AccountingStuff]

As Ashley Qin & Khalil Al Soubirh have kindly pointed out... the Cash Conversion Cycle is 'CCC = DSI + DSO - DPO', not 'CCC = DSI + DSO + DPO'. My apologies for this typo! What would you like to see next?? ⏱TIMESTAMPS 00:00 - Intro 00:28 - FINANCIAL STATEMENTS 01:16 - WHAT IS FINANCIAL RATIO ANALYSIS? 01:56 - What types of Financial Ratio are there? 02:39 - PROFITABILITY RATIOS 03:47 - Gross Profit Margin (GPM) 04:19 - Operating Profit Margin (OPM) 04:40 - Net Profit Margin (NPM) 05:46 - Return on Assets (ROA) 06:49 - Return on Equity (ROE) 07:37 - Return on Capital Employed (ROCE) 08:11 - LIQUIDITY RATIOS 09:10 - Cash Ratio 09:50 - Quick Ratio 10:17 - Current Ratio 10:29 - EFFICIENCY RATIOS 11:04 - Inventory Turnover Ratio 11:26 - Receivables Turnover Ratio 11:43 - Asset Turnover Ratio 12:16 - Payables Turnover Ratio 12:40 - Cash Conversion Cycle 13:09 - Days Sales of Inventory 13:43 - Days Sales Outstanding 14:07 - Days Payable Outstanding 14:52 - LEVERAGE RATIOS 15:19 - Debt to Assets Ratio (DTA) 15:43 - Debt to Equity Ratio (DTE) 16:39 - Interest Coverage Ratio 17:03 - Debt Service Coverage Ratio (DSCR) 17:56 - PRICE RATIOS 18:26 - Earnings Per Share (EPS) 19:27 - Price-To-Earnings Ratio (P/E Ratio) 20:19 - Price/Earnings-To-Growth Ratio (PEG Ratio) 21:17 - Dividends Per Share (DPS) 22:04 - Dividend Yield Ratio 22:30 - Dividend Payout Ratio 22:59 - FINANCIAL RATIOS MIND MAP

[@fayazrahman2099]

Can we have a video more on bonds and shares within accounting please and anything else related to that area as I find that as my weakest link to accounting

[@mohamedgamal9903]

I hope you start your costing and budgeting videos that would be great 👌🏻 ... and thanks alot for this great and informative video and as always you are really great and talented person ❤️

[@samburdge9948]

I say start from the beginning again….maybe how the whole process starts……invoiced et cetera…..maybe reupload some of your more successful videos…….gods bless

[@monah2030]

Can you please make some videos for payroll from scratch? Unlimited thanks 😊

[@archanak3340]

Hi James, I recently came across your channel and loved your videos!! Big thank you for making them. Would you please make some videos explaining basic secondary balance accounting such as BS reclass, funding, cost of carry etc??

[@aasthavijay]

This is one of the most useful, crisp video on Fin ratios!

[@AccountingStuff]

Thanks! Glad you enjoyed it :)

[@ashleyqin7157]

Thanks for the amazing organized contents. While CCC= DSI+DSO- DPO, instead of plus all three of them...

[@AccountingStuff]

You are correct! Sorry for the typo. I'll pin a comment to show this correction

[@sepideabbasi8361]

Thanks for telling. I had the same problem.

[@ernieaguilera1272]

Brilliant and Beautiful Financial Control Systems. Thanks for posting!

[@chibuezedaike9331]

You are simply the best James, you are good at what you do, Gracias,

[@accountingstuff7625]

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[@asfandyar374]

This is by far the best video on financial ratios I have EVER seen. Splendid work👏👏👏

[@AccountingStuff]

Thanks!!

[@JoshuaJohn-yl3pv]

This was very very useful! I've never been able to understand ratios well but your short video helped make it easy to grasp and implement. Thank you! Definitely warrants a follow! 👍🏽👍🏽

[@AccountingStuff]

Great to hear it made sense!

[@tessalockhart1571]

I tell my husband name james all the time that im in love with another James, and thats you because, you help me achieve the impossible, a 4.0! And I couldn't be more happy, always in love with two James!, Thank you for everything, forget how helpful your videos are untill a accounting class comes around again❤ one more accounting class to go🎉

[@AccountingStuff]

Love it! Best of luck in your next class :)

[@youtubecommentrater3379]

You are needed...this video was needed champ! We might not deserve you but Thank You my boy 💎

[@teacherrussell5206]

VERY USEFUL VIDEO!!!

[@iamfabgirl7820]

Hey James! I've been watching these accounting videos of yours from a long time now, and I've been really liking them. I want you to make some videos on the following topics (please as a request). 1. Books of original entry 2. Cashbook 3. Adjusted Cashbook 4. Capital & revenue expenses & incomes 5. Receipts 6. Control accounts 7. Source Documents 8. Errors I am requesting you as I really have understood all the topics only from your videos. P.S: I have my CAIE's so I really want help. Thank you! 0:38

[@accountingstuff7625]

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[@Princesscolex]

Thank you so much for all of your videos. This is better than Becker in my opinion.

[@jennifermertz2812]

Thank you. I'm a little late discovering your video but they still helped. I'd been struggling at work with profit margins and turnover ratios as no one had ever explained how and where to get the information. The AP/AR turnover ratio was exactly what I needed to know to give better answers to my boss. So, thank you.

[@AccountingStuff]

Great to hear you found it useful!

[@zoeskee1199]

Very informative. Thanks for sharing.

[@AccountingStuff]

No worries, glad you found it useful :)

[@Agaettis]

Thank you. My current Business class basically just leaves us to read the chapter and take a test, I couldnt understand until I watched this

[@laurademaio5894]

Thank you for this incredibly understandable video that helped me complete a financial analysis project I first found daunting with ease!

[@AccountingStuff]

No problem!

[@checkdown3774]

Loved all your accounting videos mr. James. I've moved more into finance and I'm jack to the t its to see you made a video on statements.

[@AccountingStuff]

No worries, all the best in your new role :)

[@mahnoortufail3427]

I waited soo long for your updates Please upload frequently it is of great help

[@accountingstuff7625]

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[@KeshawKSinha]

the way explain is awesome. Even many big shot professors are not able to make simplify as you do.

[@MrPushupp]

wow wow wow this video was packed full of it, just got done making falsh cards of these all so i can lopok at them on the go and such. Thanks for the video!

[@amoorusahithi5834]

This is helping me to prepare for my aemister end exams thank you so much for making this useful vedio for students who doesn't understand what teachers teached in the class room 😊

[@AccountingStuff]

No problem! Best of luck in your studies :)

[@samysr9610]

You a professional person who dip him self over long time on financial analysis

[@SpecialKtoday]

Brilliant video! Thanks James :)

[@accountingstuff7625]

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[@ryderstimpel2704]

What a well put together video that includes such a vast amount of general knowledge. I think this is my first youtube comment ever and you deserve it the info in this 20 min vid would cost me hundreds of dollars in the form of a textbook.

[@AccountingStuff]

Thanks! Great to hear you found it useful :)

[@TerryCollinsP31Lifestyle]

Good Morning James, Thanks for doing this video.

[@AccountingStuff]

You are welcome

[@Yo_Kelz]

THANK YOU!!

[@accountingstuff7625]

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[@camihahn4]

You are so talented, theses videos really help me a lot I will give you a special thank you on my assignments

[@AccountingStuff]

Thanks! Best of luck with your studies :)

[@Adelade500]

Thank you very much for this... excellent work

[@AccountingStuff]

You're very welcome :)

[@hisokaamorou4211]

Great video for finance and accounting students

[@scholarshuvo4221]

your contents is life-saving for accounting students. Thanks a lot. Appreciation from Bangladesh 🇧🇩

[@AccountingStuff]

No problem, happy to help :)

[@ChhumSoklin-pk4qy]

I really love your explanation. Your video is amazing. It makes me understand and memorize the lesson quickly. Hope to see your new video soon.

[@nicholasiezzi9790]

I can't wait to take accounting next quarter. I just finished macroeconomics. I hear everything is backwards in accounting though. I go to school for business we have to take accounting 1 and 2

[@kanikamaheshwari9732]

What I am gonna write is not a new compliment to this on any other video on this channel. However, here it goes. So, I think this channel needs to be mandatory in schools & teachers are not needed thank you😛 Also, I seriously regret not having KZbin back then growing up. Its just so easy. You can pause, play, take notes and at the same time look for meanings & clarifications on a certain topic. You are making lives of students & professionals not just easy but also smart. Thanks a ton for existing......🥰

[@descraker]

love your work man and as an appreciation I purchased all the sheet even though am here only for general knowledge. amazing work that is helping big group of people of different generations/parts of the work ,,, all the best keep it up

[@vtuscript]

Can we share please

[@chefrumbie]

Your Chanel helped me alot in May , I finally passed My accounting 😊 and now I’m a certified Chef😇 thank you so much

[@AccountingStuff]

Congrats!! That's fantastic to hear. Well done :)

[@anonymousefitz8736]

Wait wat?? Im just passing through videos and im still in high school. So im a bit confused

[@chefrumbie]

@@anonymousefitz8736 Culinary has 9 courses, so Accounting was one which was abit hard for me

[@zhongyiwo9738]

thank you. you saved my accounting course

[@vimalak]

Brilliantly explained in a simple way👍🏻, thanks!

[@AccountingStuff]

Thanks, glad you enjoyed it!

[@tomasdvorak6674]

Regarding the Cash Conversion cycle, shouldn´t the Days Payable outstanding be actually deducted from the Days sales of Inventory and Days sales outstanding?

[@mikele7982]

Yeah, basically CCC measures how quick the company make investment and asset turn into cash! DSO, DIO is cash inflow while DPO is cash outflow. So DPO should be subtracted. Well he made errors here and there as well so it would be best to use it as a mini guide and figure out the meanings behind each ratio yourself.

[@Disrespectedits]

Started watching your videos and I am already a fan, please keep up the quality content. 🙏

[@accountingstuff7625]

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[@kep_un_blishen]

3hrs to exam and am here learning the whole semester, thanks so much this content is wonderful and I just happened to understand, your a good teacher

[@AccountingStuff]

Best of luck!

[@mohamedgamal9903]

What a great video !! I needed this video since long time and I really wanted to learn this ratios from you .. you got your special way to learn others .. you are really talented ... thanks alot ❤️ I hope you start your costing and budgeting videos that would be great 👌🏻

[@SONUKUMAR-qv6jm]

Fabulous the way you taught It is mind blowing and I am dam sure that It will help me allot. THANKU SO MUCH

[@mmashar6809]

Thanx bro i literally needed to learn this for exam

[@accountingstuff7625]

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[@marquisdelaz]

Remarkably helpful. Thanks Accounting Stuff!

[@AccountingStuff]

That's great to hear :)

[@darkmankind]

Thanks for the video. You just helped me pass my last financial analysist assignment and provided a great cheat sheets. I am a subscriber.

[@AccountingStuff]

Congrats on passing your assignment!! All the best

[@denconstutube]

Excellent video. You have covered so much in a short video. Well explained and easy to follow and learn. Thank you.

[@AccountingStuff]

Thanks, glad you enjoyed it!

[@chibuezedaike9331]

A topic on intercompany accounting and related party transactions would be really nice

[@accountingstuff7625]

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[@unclesly2465]

thank your so much mate, you ability to semplify things is nuts

[@camillaszymanowska1632]

These videos are so helpful. Would love some more on gearing and gearing ratios!

[@joshuahsueh7900]

What is a statement of comprehensive income? Could you do a video on it please

[@oumaymaelammari4180]

This is gold for a student

[@bhuvanesh1]

Thank you

[@AccountingStuff]

You're most welcome :)

[@dark_ion]

you are legend 🙌

[@accountingstuff7625]

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[@yizhang6117]

This is really a wonderful video introducing the financial ratios.!

[@AccountingStuff]

Thanks, glad you enjoyed it :)

[@IsabelRodriguez-nv2ue]

Thank you very much for creating this fantastic, amazing and formidable video!!!!! Super well explained and organized!!! It is a real treasure! Thanks!!!!

[@AccountingStuff]

You're very welcome!

[@theguywith]

Really immaculate with your statements. True to the way of accounting stuff. I have to catch up on quite a few videos now!

[@Uddhav05]

Great videos and has helped me (a non finance guy) understand the concepts much better now. Is it possible for you to share some references or sources too in description that will help us further?

[@kampambamubanga3810]

Watching from Zambia and your channel has always been helpful. Thank you and keep up with the excellent content.

[@charleskeanureevesjohn8596]

Nice one 👍

[@analizazara62]

Thank you! Well explaned and easy to understand.

[@AccountingStuff]

Great to hear you found it useful :)

[@josephmatane950]

Hey there could be assist me by highlight where I went wrong I don't have Instagram account how can I send you document in question

[@accountingstuff7625]

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[@getachewdegefa9639]

Thank you!!! God Bless You

[@AccountingStuff]

You're very welcome :)

[@MrDCD007]

Hi james thanks for this knowledge

[@accountingstuff7625]

👆✍️

[@txin999]

James, my real financial accounting professor xD

[@Bigoski1]

I am a senior and a semester away from getting my degree in Finance. I still had no idea what these ratios meant until this video. Thank you for this, I will now graduate having learned something lol.

[@AccountingStuff]

Haha, I'm sure you've learnt more in your course. Best of luck in your last semester!

[@Bigoski1]

@@AccountingStuff I learned a lot don’t get me wrong, but our professors didn’t focus on what the ratios meant rather how they were calculated. This video helped me round out the definitions and it meant a lot!

[@AccountingStuff]

@@Bigoski1 Thanks, that's great to hear! All the best :)

[@aleflam9669]

U r rock! Im very impressed !

[@accountingstuff7625]

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[@natalieyeo8496]

Hi! I’m currently studying accounting and have literally no background in accounting. Kindly if you could explain What is heating and lighting means in accounting? Thank you in advance!!

[@arwahnptswahyuaryanto331]

Sir, let me ask you a question. Altman z score the end result is financial distress/bankruptcy, how to relate it to the prediction of profit increase and decrease? This is my title, confused about getting into the profit, want to explain the profit prediction Comparative analysis of the Altman z score, zmijewski x score, and springate s score methods in predicting the impact of increasing and decreasing profits on the financial statements of transportation companies listed on the IDX (as of 2017 - 2020) 🙏🙏

[@arwahnptswahyuaryanto331]

Please 🙏

[@accountingstuff7625]

```🤝THANKS FOR WATCHING 🆙 SEND A MSG ON TELEGRAM WITH THE LINK ⬆️```

[@tataforever724]

Very well explain and easy to understand it.

[@TerryCollinsP31Lifestyle]

WOW!!! You are really good at explaining this.

[@AccountingStuff]

Thanks!

[@dennisleka4346]

Amazing how you simplified Ratios in just 25 minutes

[@flohello4920]

Jesus James, took u a while to come back. pls never leave us like that :D

[@syahirfawwazmohdsofian6441]

Thank you James. Ure the best. Help me out till i graduate

[@dilloncyr8748]

Very good video.

[@accountingstuff7625]

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[@alighalwash_4494]

Mr James . I am a fresh graduate in accounting.I wanted to know what are the most important skills that an accountant must have in order to be a successful accountant.Please reply as soon as possible.

[@accountingstuff7625]

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[@mattbendijo5850]

This guy is going to heaven for sure

[@accountingstuff7625]

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[@chibuezedaike9331]

And welcome back

[@accountingstuff7625]

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[@phenyomatjila6900]

I read 3 days from Gitt, and you just me understand everything in less than 25mins🔥🔥🔥

[@AccountingStuff]

Great to hear you found it useful!

[@thelibrarian2189]

Absolutely helpful! Thank you! Please consider making a video on Pro Forma statements 💪🔝🔝

[@XanRussell]

I need CPA tutor. Accounting tutor. Love your videos

[@accountingstuff7625]

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[@danielpalmer8156]

Holy shit batman this is gold. Thank you for this video I was trying to find a KZbin channel I could understand and many are way too hard to follow what they are saying.

[@txin999]

By the time I reached dividend payout ratio, my brain melted :') But thank you for this, James!

[@Vikermajit]

Tq, Financial Accounting Shifu...

[@eltonloverboy]

I have my paper so soon This has been helpful

[@AccountingStuff]

Good luck!!

[@mariamwaheed2235]

I have a quest which I asked from you in accounting basics in 14 mins I wanted to ask you how do you calculate retained earnings? I really need your help it would be grateful if you will help me with this?

[@accountingstuff7625]

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[@sayedhussainmuhabat813]

Hi James, I learned so many things from your videos. Thank you! Could you please explain budget and types of budget?

[@accountingstuff7625]

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[@SAAHILSINGHH]

Bro i am from India and by mistake I found your Yt channel but I think I got Great accounting Teacher ever ❤

[@AccountingStuff]

Thanks, much appreciated :)

[@thinkusaarabic]

Thanks 🙏 so happy 😀

[@happycrabknits9109]

Thanks!!! This is a great refresher

[@sydneymbofwani4414]

I was giving up on Accounting as a profession not until I saw your videos on KZbin.

[@AccountingStuff]

Great to hear you're finding an interest in it again :)

[@foolonamoon]

This is good information. Thank you for making it available.