That is probably the best & most succinct explanation of these 3 ratios. Look forward to watching more of your videos.
@TheFinancialController4 жыл бұрын
Thanks Alex!
@cheikhwely3 жыл бұрын
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 :)
@rachedecheikh82762 жыл бұрын
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.
@AhMauy7 ай бұрын
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 “ ?
@michellewright993 жыл бұрын
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.
@TheFinancialController3 жыл бұрын
Thanks Michelle!
@gw87553 жыл бұрын
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!
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!
@TheFinancialController3 жыл бұрын
Good question! pls google the question "what's the difference between ..&.." and also what is "Credit Sales", plenty of articles on this online.
@chirayugarg72074 жыл бұрын
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.
@TheFinancialController4 жыл бұрын
Hey chirayu I am not really an expert on banks, so not sure there.
@paulmartin32964 жыл бұрын
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.
@chirayugarg72074 жыл бұрын
@@paulmartin3296 thanks for the reply
@pasufi10 ай бұрын
great video! I was however confused by "credit sales" - where can I find it in the financial statements?
@PJMcInerney8 ай бұрын
Income Statement
@MissD08292 жыл бұрын
Hi, great video. I'm an aspiring financial analyst and love your insightful videos. Do you offer mentorship support?
@TheFinancialController2 жыл бұрын
Hi Doris, not at the moment, but maybe in the future.
@sarahn39353 жыл бұрын
Perfect and easy explanation. Thank you 🙏🏻
@yinyin76143 жыл бұрын
Super helpful video.
@paulmartin32964 жыл бұрын
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.
@TheFinancialController4 жыл бұрын
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.
@550manu2 жыл бұрын
very nicely explained. thanks and regards
@TheFinancialController2 жыл бұрын
Thanks brother
@helena.57603 жыл бұрын
I really like this, it refreshes my memory
@TheFinancialController3 жыл бұрын
Thanks Helen:)
@cinthiasabillon1443 жыл бұрын
Thanks for making these videos. They are very well explained!
@TheFinancialController3 жыл бұрын
Appreciate it Cinthia!
@nitikaverma181010 ай бұрын
very well explained... and really amazing content
@TheFinancialController10 ай бұрын
Glad you think so!
@naveenkumarsharma94453 жыл бұрын
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.
@TheFinancialController3 жыл бұрын
Hi sure
@1985argiris Жыл бұрын
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?
@jansyavi3 жыл бұрын
Super uitleg, your great, but where does ths 10, 000 credit sales come from in the Balance Sheet?
@MsFender323 жыл бұрын
Excellent and thorough explanation. Thank you, sir!
@TheFinancialController3 жыл бұрын
Thanks oleg
@kodirjonrakhimov7657 Жыл бұрын
Can you explain please, where $10k comes from in the formula of DSO as Credit sales ?
@Lee3_mach3 жыл бұрын
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
@TheFinancialController3 жыл бұрын
Yes possible. Best of luck
@Lee3_mach3 жыл бұрын
@@TheFinancialController Thank you so much
@verbesta13 жыл бұрын
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.
@nokafisher27713 жыл бұрын
lol I knew someone was going to ask this question so scrolled down and yes found the question. 😂
@aneezasonisoni98663 жыл бұрын
I am learing alot from your videos. Excellent explaination. 👍
@TheFinancialController3 жыл бұрын
Thanks 🙏
@user-vh5kn Жыл бұрын
Any video on trend analysis?
@a.bismail6492 Жыл бұрын
I may be incorrect. but isn't quick ratio Current assets/Liabilities and current ratio current assets-Inventory/Liabilities?
@sakshi23ca3 жыл бұрын
Thank you 😊
@rajamanisubramaniyan91143 жыл бұрын
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.
@TheFinancialController3 жыл бұрын
Thanks 🙏 will do
@jinchen17344 жыл бұрын
Excellent explanation.👍 Keep up the good work! 💪
@TheFinancialController4 жыл бұрын
Thanks Jin!
@malamofficial755811 ай бұрын
Which data of credit sale you take from?
@shreenivasdushi52993 жыл бұрын
great man...sounds good....keep going and rocking...
@TheFinancialController3 жыл бұрын
Thank you 🙏
@blu41743 жыл бұрын
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
@TheFinancialController3 жыл бұрын
ok more videos to follow on that swathi
@ziyadalshaban7753 жыл бұрын
That was amazing, just one question where i can find credit sales in financial sheet
@TheFinancialController3 жыл бұрын
All revenue/sales in this example are Credit Sales
@meytithveasna3393 жыл бұрын
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
@TheFinancialController3 жыл бұрын
Watch my interview and analysis playlists
@malamofficial755811 ай бұрын
Deferred revenue is unearned income?
@ochanbrian1361 Жыл бұрын
Well explained. keep this up
@dejib.393010 ай бұрын
Beautiful.
@marynayakovenko55393 жыл бұрын
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.
@TheFinancialController3 жыл бұрын
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
@muralibura362 Жыл бұрын
What is the indication for quick ratio
@princesspalqisa24233 жыл бұрын
I am from Somalia I study Bank and finance
@jzhuo51454 жыл бұрын
very clear and good explanation.t hank u
@TheFinancialController4 жыл бұрын
Glad it was helpful!
@ScriptedOcean4 жыл бұрын
Super Helpful Thank you!
@TheFinancialController4 жыл бұрын
Thank you!
@HepCatJack3 жыл бұрын
What about Debt to Equity ratio and Debt Ratio ?
@GPD9897 ай бұрын
How to find credit sales which you have taken 10000 in this case ?
@thatswhatshesaidbro4 жыл бұрын
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!
@TheFinancialController4 жыл бұрын
Thanks Andre, always appreciate your input!
@thatswhatshesaidbro4 жыл бұрын
The Financial Controller what would you say are the 3 liquidity ratios specifically for banks ?
@TheFinancialController4 жыл бұрын
Hey Andre, am not really an expert on banking, so not so sure.
@ibrahimbaimbakoroma602 жыл бұрын
I have an assignment: what are the financial accounting tools used to monitor liquidity. Can someone pls list them for me?
@kamwaniamit3 жыл бұрын
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?
@TheFinancialController3 жыл бұрын
credit sales refers to sales for which the customer will pay in the future. Some sales are made for cash in this case.
@drsshetty12 Жыл бұрын
I wanna learn from you 🎉🙏
@sunnyb8312 жыл бұрын
How can A/R be 20 k when your credit sales is only 10 k ?
@TheFinancialController2 жыл бұрын
Slow paying customers.
@sunnyb8312 жыл бұрын
@@TheFinancialController Thanks. From where do we collect sales credit. Does it come from Trial Balance