Financial Statements Made Simple (For Investors)

Accounting is the language of business. Much like you cannot understand what type of dish you are ordering if you don't know the language of the menu, you cannot understand what type of business you are buying in the stock market if you don't know financial statements.
By the way, don't worry. You don't need a college degree in accounting or math for this. You just need to listen to how Bob makes shady deals with the Swedish Mars Mafia and how he beats his second Cousin Stephan to build the first empire of restaurants on the red planet.
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My main tool for fundamental screening and analysis of stocks: app.tikr.com/register?ref=tsi
(If you sign up I earn a small commission)
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Timestamps for understanding the financial statements:
00:00 Intro
00:22 The Language of Business
01:43 Issuing Common Stock
01:55 Important Difference Between the Statements
02:28 Cash & Equivalents
02:40 The Accounting Equation
04:41 Long-Term Debt
05:02 Property, Plant & Equipment
05:31 Current VS Long-Term Assets
07:40 Cost of Goods Sold (COGS)
07:57 The Income Statement
08:15 Gross & Net Income
08:34 Selling, General & Admin Expenses (SG&A)
09:43 COGS or SG&A?
10:20 Introduction to Depreciation
11:28 Capitalization
12:02 Depreciation & Amortization
12:45 Accumulated Deprecation
13:05 The Importance of Profit Margins
13:43 Interest Expenses
13:53 Income Tax Expense
14:11 Retained Earnings
14:21 The Cash Flow Statement
14:39 How the Statements are Linked
15:00 Cash from Operations
15:31 Cash from Investing
16:01 Capital Expenditures
16:16 Cash from Financing
16:28 Net Change in Cash
16:58 Only the Balance Sheet Accumulates
17:30 The “Stickiness” of Expenses
18:16 Inventory
18:26 Change in Net Working Capital
20:02 Research & Development (R&D)
20:36 Freeing up Cash
21:10 Collateral & Defaults
21:40 Debt/Equity Ratio
22:08 Issuing More Stock (Equity)
22:50 Equity VS Debt
23:29 Additional Paid in Capital
23:43 Other Intangibles
24:14 Amortization of Intangible Assets
24:35 Expanding the Costs
25:22 Major Expansion & Expenses
25:45 Accounts Payable
25:58 Accounts Receivables
26:39 Accrued Expenses
27:06 Dividends
27:58 Repurchasing Shares
28:40 Treasury Stock
29:12 Acquisitions
29:45 Goodwill
30:18 Short-Term Investments
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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there - investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties - I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process - upgrading your money-making toolbox.

[@TheSwedishInvestor]

Here's how you can apply this information on a very practical level in the stock market: kzbin.info/www/bejne/ZmqwgpSEqLqSbac

[@gerardodacruz5188]

It is crazy to think that we have gotten to the point that KZbin can provide much better education than expensive College degree. Btw Thank you so much The Swedish Investor team. You all rock!

[@gabelincoln3608]

No lol

[@gerardodacruz5188]

@@gabelincoln3608 Sure, yes lol!

[@sgtakiba86]

@@gerardodacruz5188learn this in high school lol

[@gerardodacruz5188]

@@sgtakiba86 You are lucky af. We were taught to recite boring and useless facts in high school

[@tubeo94]

Yes and no. It can make you have a general understanding of these things. However, every line in these financial statement has its own chapter and it is very hard. I was a Summa Cum Laude graduate in Taxation in U of Houston. Some of these are still my nightmare like hedgefund and derivatives.

[@matthewknight766]

I don't believe anyone ever explained it so well. Exactly what I was looking for.

[@karlsonmovies]

As a beginner, all this is so confusing, but this video gave me some broad impression of accounting. I'll definitely be revisiting now and again. Thanks for the video!

[@basecode06791]

The story telling make it easy to remember and entertaining insane 👌👌👌👌

[@mohamedmohamedabdallah13]

You explained it 100 times better than all my CFA instructors .. really thank you so much

[@danguee1]

Gross, over-emotional hyperbole. Though he explain it exceptionally well.

[@ShrihariSivakumar]

Oh Man! This is the simplest possible way of explaining this concept for newbies.

[@yvngjojo88]

I can't possibly put in words how much I appreciate this video. Thank you for your efforts and for posting this golden piece of information... Keep up the good work my friend!

[@JoseReyes-jq9kw]

Definitely going to be watching and rewatching this video many times. I love the story like way of describing the financial statements, definitely helps out a lot in understanding the concepts much better. Thank you for the video, the detail and time put in this is much appreciated

[@rise2fame_]

Swedish Mafia you are probably the most helpful channel on youtube and get straight to the point as well as being funny. I hope you continue making vidoes

[@strowie1697]

Love how you use examples to walk us through accounting 👍

[@azzalos]

I love it! I keep rewatching certain parts, going reading elsewhere, coming back, and slowly I am getting the hang of it!

[@davidchi9388]

What a great video!!😲 accounting, valuation, blue ocean vs red ocean, diferenciation, ownership dilution, buyback, acquisition and diversification. All that in one video!! Funny, educational and really entertaining.

[@TheSwedishInvestor]

Thanks a ton for the support David Chi! Great to see that some of the underlying theory shined through.

[@ziilux84]

I love it. This is one of the best contents I've ever met on YT when it comes to accounting.

[@izzeww8487]

This is by far your most underrated video. Phenomenal quality and the connection you make between the different financial statements is great. I recommend this video to anyone.

[@vincentortega4284]

As a accounting student. You have explained this so well. Thanks

[@MidhunRaj_I_am_here]

Never seen such a more beautiful explanation. Keep it up

[@Fockstedt]

Just incredibly well explained all throughout. I myself have an easier time learning when there's a concrete example explaining all the concepts. I've been investing for a couple of years now but some parts of the financial statement have never been completely clear to me, but now I feel like I have a much greater understanding of the statements. Fantastic work!

[@FF-kc1wo]

Thank you for providing such a high quality content!

[@shervinasgari6314]

Your videos are just so freaking amazingly good

[@robertmcfadden4511]

Thank you for explaining Financial Statements in terms we all can understand! Much aooreciated!

[@hendraarbi197]

Many Many thanks @Swedish Investor. This video gives me simple way to understand financial statement for someone that doesn't have accounting background like me

[@tomskondratovics760]

awesome content, dude. Got to agree, that this is more useful than high school / college materials. Keep it up!!

[@DanielMicallef94]

Your videos are always incredible! Keep it up Swedish Mafia!

[@Disctop]

it was so educating and entertaining! More content to come!

[@tokennugg]

I appreciate all of your videos.

[@danielescobarvaldivieso]

Duuude, I should have watched this video years ago. Thank you very much for making it.

[@RelatablewithMaylee]

This so underrated, thank you for your hard work

[@jorgeandresamo7198]

This may be the best KZbin video I've ever seen

[@adolfoajuz]

The diagram relating the three statements is solid gold.

[@minimalisthealth]

Terrific terrific video. I've tried repeatedly looking up videos on YT (including other ones on your channel) to understand exactly how balance sheets get balanced, how they work and all. But none explain it so intricately as it's done here. I'm still confused about a few things, but at least now I know what I'm confused about. about

[@emmanuelchukwudubemduru5737]

God bless you. So much gold nuggets in here

[@mariannatheron7363]

Thank you! Thank you! Thank you so much Sir!!

[@dkswert]

i am an 18 y.o girl from kazakhstan and this video is helping me to prepare for my finance exam i am having tomorrow. thank you for that video

[@Lev0702]

A sold awesome video man! Great breakdowns of accounting language. Entertaining and educational. 🙌

[@atbiaol1929]

The effort you might have taken…. End result is really worth it. Thanks a lot. Well explained. I did learn something

[@myle6749]

I like these illustrations and storyboard type explanation so much 💗

[@jakubczekaj8328]

That was really something out of this world ;P Amazing explanation !

[@kenkoh6827]

Good example to explain the financial statements. I am going to rewatch again when I want to analyse real company.

[@Bladeczek]

I'm amazed by your channel, thank you for your work, it's really helpful

[@matejbetak2433]

This is without a doubt the best video I have ever seen.

[@TheSwedishInvestor]

Matej Betak I'm flattered! Thanks a ton for the support!

[@aGr3atD4y]

I learned in 30 mins what teachers, and myself, struggled to learn in school!!

[@DrThier32]

Excellent video, love the explanation. Thanks man

[@albertvnguyen]

I will have to re-watch that video multiple times!!!

[@HashBrown99Gaming]

Hey man, I just wanna say thank you for all your hard work. This must have taken a lot of time to make and it was extremely informative. You definitely deserve more subcribers this is EASILY the best channel to learn about financial discipline and investing. I really appreciate your hard work you're an absolute legend! Keep up the good work fam

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[@pinned_bydahboo77...24]

Let's talk, I've got something big to introduce ☝️....

[@ivaniske]

This video needs to go viral! I loved the step by step change acroos all the sheets. Bra jobbat!

[@julanivishal]

Best video for financial analysis.

[@auto_matic10s95]

Wow. I am happy to find this channel. This video alone has provided the smoothes approach about the financial statements that I have been looking for. You earned a new longtime subscriber.

[@pinned_bydahboo77...24]

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[@pinned_bydahboo77...24]

Let's talk, I've got something big to introduce ☝️....

[@maxime5795]

The quality of this content is actually insane

[@eatekhieng8605]

Please make more video like this about accounting and finace . This is very helpful and useful . Thanks very much❤

[@fedde533]

Great video! You can really see the amount of work you put into this one. Well done!

[@SoYouWantToLearn]

This is one of the reasons why I follow you so religiously. This is an excellent video.

[@evelic]

Crazy teaching. Very well done.

[@tapishgautam7946]

thank you for this, was waiting for this video..

[@TheSwedishInvestor]

Hope you'll enjoy it Tapish Gautam!

[@jurajskoda]

wonderful video! I am becoming long term fan :)

[@asdfghjkllkjhgfdsa1022]

This is amazing! Tysm!!!!!

[@LEO-mi4eu]

Wow dude. Amazing video....thanks a lot🥳👏

[@GennesisDreaMz]

You got a like from me as soon as I heard Bob Musk. Love this channel

[@BenW-xb5iv]

thanks I NEEDED this

[@ValleyData]

One of the best videos.

[@jellovendigar]

An exciting story accompanying a bona fide accounting lesson? Well that’s a first Great job guys

[@Dolvak123]

Honestly - you are a legend 🤩

[@Haze508]

Great video love the buffet voice at 10:55😂

[@WatermanViolinStudio]

This video earned my subscribe button press to you. Exactly what I've been looking for and fun too.

[@rajendranpj7778]

Exceptional video ❤

[@TobiasLA]

Great done!!

[@raynellwilliams706]

This is great. Thanks

[@ramrk2316]

love you bro 💕great work

[@sng1425]

love your content so much

[@thomaskismul8541]

Great video! Thanks alot

[@danguee1]

In retrospect, Bob should be grateful for Stefan: he forced Bob to become much more "lean and mean" and forced him to be more creative and flexible.

[@faisalsheikh7846]

Thank you soo much erik ❤

[@rmcruzo]

Really good! Appreciate you made it entertaining and simple to understand =D

[@jeremyungx]

Holy fck this one is good, have loved all your videos so far ! (Binged like 40-50 of them this week)

[@pinned_bydahboo77...24]

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[@fudomyoo77]

outstanding content, thanks a LOT

[@Falnky]

3:26 I really appreciated the Terraforming Mars reference, lol

[@Moeeex]

Legendary explanation

[@epexp3rt]

Thank You!

[@akshaykumar-yk2ri]

amazing work .... i was just about to spend days into reading about accounts. This sppeds up things. Exactlty what I needed.

[@SmoothHov24]

About to watch. I’m so excited you’re covering this topic. Thank you!!

[@TheSwedishInvestor]

Hope you liked it!

[@rajdeepbhoi]

Such a good video and no views. Guys please like the video for better reach. He even changed the thumbnail and title. Lol

[@hakimmalik6995]

I owe a good percentage of my future Net Worth to this video !

[@Buffdawg99]

Finally back!

[@hectorjelly]

Amazing video thanks!

[@ominollo]

Great Video!

[@josephmbugua7833]

AT LAST YOU ARE BACK.. WE HAVE BEEN WAITING..

[@TheSwedishInvestor]

It's been a long time joseph mbunga! Hope you'll enjoy the double-video release :)

[@josephmbugua7833]

@@TheSwedishInvestor sure

[@danmchardy6424]

Using this as revision for my CFA exams, wish me luck!

[@sia_ibk]

I was understanding and following till I was not anymore 😂. Have to watch this again. Lost track when the balance sheet was out of balance!

[@yuxinwang8179]

fabulous video content

[@sonny5982]

Amazing video

[@nerminkulin1813]

Grear video. A 5 year old and even me could understand now how financial statemends work

[@Silver-fh4fb]

Honestly, this video was so inspiring that I immediately wanna go and start my own fast food franchise on Mars.

[@pinned_bydahboo77...24]

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[@pinned_bydahboo77...24]

Let's talk, I've got something big to introduce ☝️....

[@jordipau]

Amazing video!

[@Pradee455]

great video

[@valuabletips560]

I really appreciate the storytelling, though I had to slow down the videos a few times to re-read what you have said. It is overall a very good video

[@maximilianwenker916]

This video is so awesome Because of you and some of your book recommendations I consider to get into accounting

[@TheSwedishInvestor]

Maximilian Wenker I'm happy for your support! Glad to hear that the channel may have helped you in a future choice of career. I think accountants have a really solid foundation to become great investors.

[@Trooperos90]

Great idea to explain it

[@TheSwedishInvestor]

Glad it was helpful!

[@prakhargupta852]

Your channel is very underrated. Hope it will cross 1 million mark soon...

[@TheSwedishInvestor]

Thank you so much 😀

[@tylermiwa8249]

He didn’t say this specific video was better then attending college but I’m sure a smart non-sheep of a human could piece together enough information from enough individuals videos to have a vast understanding of many subjects well that and trying things in the real world.

[@Fatalinvesting]

This was amazing. I try to do the same with my channel in showing people to focus on Fundamentals since they are king. This analogy for explaining all the statements was amazing, Im subbing.

[@TheSwedishInvestor]

Glad you enjoyed it Fatal Money! Cheers to you!